Shareholders of ABBANK approved a number of targets for 2023, including a 68 per cent increase in pre-tax profits to VND 2.8 trillion (US$120 million), at the lender’s annual general meeting in Ha Noi last week.

An Binh Commercial Joint Stock Bank, its formal name, also targets increases of 5 per cent in assets to VND136.8 trillion ($5.8 billion), 10 per cent in loans outstanding to VND97.3 trillion ($4.1 billion) and 2 per cent in deposits to VND93.5 trillion ($4 billion).

It hopes to contain non-performing loans at below 3 per cent.

To achieve its targets this year, ABBANK plans to focus on the retail and priority segments as designated by the Government, improve operational efficiency and enhance recovery of bad debts, risk management and human resource quality and training.

It will enhance the implementation of the 2 per cent interest rate subsidy programme mandated by the Government’s Resolution No.31, and roll over loans to help customers overcome difficulties in accordance with the SBV’s Circular No.2.

Dao Manh Khang, its chairman, said: “We are in the final stages of issuing shares to pay dividends of 10 per cent, raising our charter capital to over VND10 trillion ($427.4 million).”

“ABBANK plans to increase its equity to many times the current level in the coming years.”

Its profit after tax last year was VND1.3 trillion ($55.5 million) and it has undistributed profits of nearly VND2.5 trillion ($106.7 million).

Of this VND940.95 billion ($40.2 million) will be capitalised by paying dividends in the second or third quarter.

Shareholders also approved a plan to switch the listing of its ABB stock from UPCoM to the Ho Chi Minh Stock Exchange when market conditions are favourable.

The AGM also elected a new board of directors for 2023-27, including Khang and Maybank’s nominations of its senior executives John Chong Eng Chuan and Foong Seong Yew.

The Malaysian bank is one of the strategic shareholders of ABBANK. — VNS