KienlongBank's bright financial picture in the last quarter of the year
Kienlong Commercial Joint Stock Bank (KienlongBank, UpCoM: KLB) has just announced its financial report for the fourth quarter of 2023. The recorded results have shown positive signs in the overall financial picture of the Bank. With the flexible and prudent direction and management of the Government and the State Bank of Vietnam (SBV), KienlongBank's Board of Directors has implemented many sensitive solutions, proactively responding to market difficulties. Data as of December 31, 2023 shows that KienlongBank's total assets reached VND 86,972 billion; customer deposits reached VND 56,897 billion, outstanding credit reached VND 52,580 billion, exceeding the annual plan.
In the business results report, KienlongBank recorded net profit of VND 542.6 billion; profit from service activities reached VND 144.6 billion, while net profit from foreign exchange trading and investment securities trading brought the Bank VND 22.3 billion and VND 31.8 billion, respectively. KienlongBank's pre-tax profit in the quarter was recorded at VND 79.5 billion, bringing the total profit in 2023 to VND 719 billion, reaching 102% of the plan approved by the General Meeting of Shareholders in April, bringing a total of VND 574 billion in after-tax profit.
In the digital strategy roadmap, the Bank has devoted most of its resources to investing in technology and digital transformation to increase productivity as well as improve customer service efficiency. This is also one of the costs that accounts for a large proportion of the Bank's total operating costs in the quarter. However, to meet the dual goal of both preparing a solid foundation for a breakthrough and maintaining business efficiency, KienlongBank has proactively optimized operating costs, thereby reducing general costs and ensuring profits meet the plan.
As the first year under the leadership of the Board of Directors and the Supervisory Board for the new term (2023 - 2027), in order to achieve this positive business result, KienlongBank has focused credit on production - business sectors, priority sectors and growth drivers according to the Government's policy; considered prioritizing credit granting according to the Green Classification List, lending to meet people's housing needs; strictly controlling credit in potentially risky sectors. At the same time, through the shift in outstanding debt structure, it shows that the Bank also creates favorable conditions for customers who are individuals, small and medium enterprises, cooperatives, high-tech production models, participating in the value chain, accessing credit capital, and developing business.
In early 2024, KienlongBank will launch a 0% interest rate support program to stimulate consumption and boost business.
2023 is also the year that recognizes KienlongBank's joint efforts in supporting people and businesses when it has continuously reduced lending interest rates 8 times with a total reduction of over 3%, exceeding the target set by the Government and the State Bank (from 1.5 - 2%). Not stopping there, opening the first days of 2024, understanding the spending and business needs of customers, KienlongBank has implemented a preferential program of 0% lending interest rate with the hope of providing strong support, increasing access to capital for customers at this important time.
Notably, thanks to strict risk management measures and prudent risk appetite, the reduction in the proportion of loans to risky areas, KienlongBank's bad debt ratio remained below 1.5%, among the lowest in the market, ensuring compliance with the regulations of the State Bank. In addition, in the fourth quarter of 2023, KienlongBank also proactively used resources by setting aside 229 billion in provisions to enhance resources, increase buffers, implement bad debt coverage, strive to control the bad debt ratio below the prescribed level, while reducing the pressure on provisions for the coming years, reducing the impact of bad debt in the future.
Accelerating digital transformation, aiming to build a comprehensive ecosystem by 2025
Expecting the recovery momentum of the Vietnamese economy in particular next year, to complete the goals in the assigned key plan, KienlongBank has closely followed the directions from the Government and the State Bank, creating a premise to implement key groups of solutions such as focusing on improving management and administration capacity, focusing on governance issues according to international practices; strengthening supervision and compliance with regulations and standards in banking activities; resolutely implementing solutions for restructuring and handling bad debts; promoting digital transformation.
In addition to business decisions that are sensitive to the market, KienlongBank also aims to take sustainable development and selective growth as a premise to achieve the goal of becoming a leading bank in the retail segment, supporting consumer demand and small and medium enterprises (SMEs). By identifying digital transformation as a core task that is thoroughly and resolutely directed, KienlongBank has been deploying many digital products integrated on the basis of single digital products to develop and apply AI technology to meet and support the maximum needs of customers such as the MyShop - Paybox solution set, KienlongBank Pay payment solution, etc.
At the same time, KienlongBank also strengthens its cooperation network with many banking agents and e-commerce sites to further enhance customer experience, establish a diverse digital ecosystem, and meet the needs of various customer groups. KienlongBank hopes to create a new standard for a comprehensive digital banking model, creating a new position for banking services in the eyes of customers.
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