ABBANK expects 2019 profits to increase by 30 per cent

Tuesday, Dec 24, 2019 18:12

An ABBANK branch in HCM City. — Photo courtesy of the bank

An Binh Commercial Joint Stock Bank (ABBANK) expects to achieve VND1.22 trillion (US$52.4 million) in pre-tax profits this year, a 30 per cent increase from last year.

As of November 30 it had a pre-tax profit of VND1.1 trillion, deposits of VND55.22 trillion and loans outstanding of nearly VND71.85 trillion.

Its non-performing loans ratio was 1.8 per cent, as against a threshold stipulated by the central bank of less than 3 per cent.

ABBANK has adopted the risk weighted assets (RWA) system, the first foundation in the Basel compliance roadmap and making it ready to meet the State Bank of Vietnams Circular 41 on the adoption of Basel II standards from January 1.

The implementation of the RWA system is a strategic step to help the lender improve its profitability and risk management capacity while creating an important foundation for the development of its business operation, and speeding up the roadmap for application of Basel II.

Basel II is the second version of the Basel Accords that set out general principles to oversee banking operations to develop a safe and sustainable system.

The SBV issued Circular 41 in 2016 to regulate capital adequacy ratios for banks and Circular 13 in 2018 on internal control systems.

Pham Thi Hien, deputy CEO of ABBANK, said the adoption of Basel II standards would also enable the bank to operate more safely by strengthening its risk management and ensuring more reasonable allocation and management of capital. — VNS

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