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Banking & Finance

ACB's Q1 pre-tax-profit at $26.23mn

Released at: 16:05, 10/04/2017

ACB's Q1 pre-tax-profit at $26.23mn

Illustrative image (Source : acb.com.vn)

Asia Commercial Bank's AGM also hears of 2017 targets.

by Van Hai

The Asia Commercial Bank (ACB) recorded pre-tax-profit of VND595 billion ($26.23 million) in the first quarter of 2017, General Director Do Minh Toan told its annual general meeting of shareholders on April 10.

The bank also targets to increase its assets by 16 per cent this year, record credit growth of 16 per cent, raise deposits by 16 per cent, keep its bad debt ratio at less than 2 per cent, and record pre-tax profit of VND2.2 trillion ($97.041 million), up 32 per cent compared to 2016.

The targets for deposits and credit growth are lower than actual results in 2016 while its revenue target is higher, which has raised some questions.

However, Mr. Nguyen Van Dung, Director of the Banking Inspection and Supervision Department at the SBV's Ho Chi Minh City Branch, said that “ACB has considered its targets carefully and I believe it will achieve them.”

He also said that ACB has properly classified its debts and reserve risk premium fund, which is 127 per cent of total bad debts.

It has finalized its restructuring process, meeting the goals and roadmap. 

He also pointed out, however, that ACB has not resolved the bad debts of six companies, Vinalines’ bad debts, and those of international banks, as well as processing mechanisms.

The credit growth target of 16 per cent is lower than the rate set by the State Bank of Vietnam (SBV) of 18 per cent, but Mr. Dung said it may be adjusted during the year.

In order to implement the 2017 plan, the Executive Board said they will concentrate on certain solutions that focus on promoting credit growth among individuals and small and medium-sized enterprises.

They will also introduce capital mobilization measures, actively balance capital sources and use, and promote the quality of its customer care services.

ACB will also focus on resolving and recovering bad debts, expand its network by seven transaction offices, and speed up the deployment of information technology projects.

A dividend of 10 per cent is expected, totaling VND1.084 trillion ($47.81 million), with net profit of VND414.2 billion ($18.27 million). ACB’s charter capital is expected to increase from VND10.273 trillion ($452.92 million) to VND11.259 trillion ($496.58 million) this year.

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