ABBANK profit plummets in Q3

Tuesday, Oct 25, 2022 12:27

ABBANK’s profit reached VND 1.7 trillion ($68.5 million) in the first nine months of the year. — Photo courtesy of the bank

An Binh Commercial Joint Stock Bank announced a year-on-year fall of 79 per cent in third quarter profits to VND86 billion (US$3.45 million) due to unfavourable market conditions.

It said foreign exchange trading and proprietary investment in securities were the main reason for the poor results.

Cumulatively, for the first nine months of the year, its profit reached VND1.7 trillion ($68.5 million), a year-on-year increase of 9 per cent, meeting 55 per cent of its full-year plan.

Its total assets rose by 9 per cent for the year to VND131.9 trillion ($5.3 billion).

Outstanding loans were VND86.9 trillion ($3.5 billion), up 10.47 per cent for the year, with 71 per cent given to low-risk retail borrowers.

Deposits increased by 7.18 per cent for the year to VND84.9 trillion ($3.4 billion).

Its fee earnings rose by 52 per cent year-on-year to VND545 billion.

Capital adequacy ratio (CAR) remained at 11.8 per cent, much higher than the 8 per cent stipulated by the State Bank of Vietnam.

Its non-performing loans ratio continued to be well under control at 1.68 per cent.

The bank has increased risk provision to over VND544 billion.

In the third quarter ABBANK bought back VND400 billion worth of bad and doubtful debts sold to the Vietnam Asset Management Company.

Nguyen Manh Quan, its acting general director, said the banking industry faced pressures including a fall in net interest margin due to increasing deposit interest rates, and there was the possibility of an increase in bad debts at the end of this year.

“To achieve the business targets for 2022 in the last three months of the year, ABBANK will promote non-credit services and develop digital banking services to provide the best user experience and seek to improve its position in the retail banking segment."

Last week (October 19) the bank got approval from the central bank to hike its charter capital by a maximum of VND990.95 billion ($39.9 million) within 12 months. — VNS

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