An Binh Commercial Joint Stock Bank (ABBANK) has reported a pre-tax profit of nearly VND1.69 trillion (US$71.9 million) last year, a year-on-year drop of 13 per cent.

Its earnings from key business segments remained stable, with net interest income rising by 22 per cent year-on-year to VND3.7 trillion ($157.4 million). But non-interest income such as earnings from services and foreign exchange trading witnessed a significant reduction.

It had total deposits from customers of VND91.8 trillion, up 15.9 per cent from 2021, and outstanding loans of VND88.5 trillion, a year-on-year increase of 12.6 per cent.

Its total assets reached VND130 trillion ($5.5 billion) as of December 31 last year, an increase of 8 per cent over the end of 2021.

Non-performing loans continued to be under 3 per cent in accordance with State Bank of Vietnam regulations, and the bank set aside nearly VND777 billion in provisions for risky loans.

The capital adequacy ratio was at 11.6 per cent, higher than the ratio prescribed by the central bank. In 2022, ABBANK also completed the purchase of all bonds that it sold to the Viet Nam Asset Management Company.

Last year, ABBANK implemented many strategic initiatives to promote its digital transformation and banking services and serve its growth targets under its strategic plans for 2021-2025 and beyond.

The bank said it didn’t meet the profit target approved by shareholders last year due to the impact of inflation and an increase in many expenses compared to 2021 and its plan.

Besides that, difficulties involved in trading Government bonds due to rising interest rates, a strong fluctuation of forex exchange rates, adjustment of its investment portfolio and others have affected its profits last year.

ABBANK is preparing to pay dividends at the rate of 10 per cent by shares, raising its charter capital to VND10.4 trillion ($442.2 million). — VNS