ABBANK accelerates strategic renewal project, digital transformation

Monday, Apr 08, 2024 14:56

Shareholders of ABBANK approved the business targets for 2024 at the lender’s annual general meeting in Hà Nội on April 5. — Photo courtesy of the bank

Shareholders of ABBANK approved the 2024 business development plan at the lender’s annual general meeting in Hà Nội last Friday.

The plan focuses on improving business efficiency, speeding up digital transformation and the implementation of banking strategy renewal project, and transforming operational model to meet evolving market requirements.

They also agreed on business targets for 2024, including a pre-tax profit plan of VNĐ1 trillion (over US$40 million).

The bank also targets increases of 5 per cent in total assets to VNĐ170 trillion ($6.8 billion) and 13.5 per cent in both credit balance and deposits to nearly VNĐ116.3 trillion ($4.6 billion) and over VNĐ113.3 trillion ($4.5 billion), respectively.

The non-performing loan ratio is expected to be controlled at below 3 per cent.

To achieve its targets, ABBANK plans to focus on attracting a large number of retail and corporate customers by innovating products, enhancing the customer experience journey in both physical and digital banking channels, making more efforts to streamline the bank's operational processes, particularly optimising lending processes, and further investing in enhancing its operational capabilities, especially in risk management and information technology capabilities.

Additionally, it will continue work to perfect its organisational structure and governance model towards enhancing efficiency and productivity across its entire system, and build remuneration policies to attract and retain qualified employees.

The bank is implementing a series of strategic projects/initiatives to support its business operation and system transformation with key projects such as Omnichannel digital platform, Customer Relationship Management System (CRM), and Datalake - data management solutions.

Regarding the profit distribution plan for 2023, ABBANK shareholders agreed to use all remaining undistributed profits to supplement capital for implementing the bank’s strategic plans, creating internal accumulation to increase charter capital in the future.

Specifically, the bank’s remaining after-tax profit after appropriation to its funds in 2023 was VNĐ298.7 billion ($12 million). This amount, along with the remaining unused profits from previous years, make total undistributed profits reach VNĐ1.8 trillion ($73.7 million).

Đào Mạnh Kháng, ABBANK’s chairman, said: “Based on comprehensive market and customer research and analysis, ABBANK will complete and implement its strategic plan for the next five years with priority initiatives to serve the needs of each customer segment. With determination to transform, we believe that ABBANK will achieve breakthrough growth again and place in the group of banks with qualified services, safe operations and positive growth.” — VNS

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