BAC A BANK sets out ambitious business targets

April 28, 2024 | 08:00
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After strong performance last year, BAC A BANK has mapped out new business targets for the 2024-2029 period, with improvements across the board.

BAC A BANK's AGM was held in the central province of Nghe An on April 27 with the participation of stakeholders accounting for 91.72 per cent of shares.

The bank's business plan for 2024 includes a number of on-year increases, such as total asset value at 7.5 per cent, charter capital at 18.2 per cent, deposits 4.5 per cent, loans 10.3 per cent, and revenue from services and guarantees 17.4 per cent.

In addition, pre-tax profit will hit VND1.1 trillion ($45.83 million), and the bank will open another 12 transaction offices nationwide.

BAC A BANK sets out ambitious business targets
BAC A BANK’s new Board of Directors

At the AGM, the Board of Directors presented the plan, which was approved by shareholders, to increase the bank's charter capital to nearly $412.5 million by either issuing common shares to pay dividends to existing shareholders, or offering them an option to buy more shares.

Shareholders also agreed a 2023 dividend rate of 6.93 per cent from the remaining after-tax profit of last year.

The meeting also approved the election of members to the Board of Directors and supervisory board for 2024-2029. During this term, BAC A BANK will continue to focus on providing loans for projects and industries that benefit the community and society. The bank will also provide diverse financial services.

BAC A BANK sets out ambitious business targets
Stakeholders vote at the AGM

With effort, determination, and lessons learned from the 2019-2024, the board of directors will closely follow the growth goals and tasks approved by the AGM.

“Fuelled by the cooperation of the supervisory and executive boards, and the solidarity and enthusiasm of all employees, as well as the trust of shareholders, customers and partners, BAC A BANK will strive to complete these targets, and effectively implement the restructuring plan associated with non-performing loan (NPL) debt resolution for 2021-2025, making positive contributions to the common success of the banking industry,” BAC A BANK said.

In 2023, the bank's total asset value reached $6.33 billion, up 18.2 per cent on-year; charter capital hit more than $347.2 million, up 2.5 per cent on-year; and capital mobilisation increased by 21.8 per cent on-year.

Also last year, BAC A BANK’s NPL ratio accounted for only 0.92 per cent of total loans.

Its credit growth closely follows the State Bank of Vietnam’s regulations on credit limits, with credit quality increasingly improved – up 5 per cent compared to 2022, with pre-tax profits reaching nearly $43.66 million.

“Investment consultancy activities continue to be promoted, focusing on projects related to high-tech agriculture, healthcare, education, and resort tourism,” a bank representative said. “These are areas that bring practical benefits to the community and are of great significance to socioeconomic development.”

In addition, BAC A BANK also has a clear strategy to diversify its banking products and services, initially deploying the Kiosk Banking channel to bring optimal experiences to customers. The CoreBanking system, internet and mobile banking transaction channels, and card management system are also being continuously upgraded.

BAC A BANK launched two international credit cards last year, and the bank is expecting the card business to become one of its key products.

BAC A BANK offers new loans with preferential rates BAC A BANK offers new loans with preferential rates

To support quality of life and business activities in the first six months of this year, and to contribute to giving customers a brilliant start to 2024, Bac A Commercial Joint-Stock Bank (BAC A BANK) has launched personal credit programme incentives named “Convenient loans and financial stability.” This scheme has flexible terms for loan durations and is suitable for diverse capital use purposes.

BAC A BANK hits award with foreign exchange transaction BAC A BANK hits award with foreign exchange transaction

Within the framework of the Vietnam FX Awards 2024 held in Hanoi recently, Bac A Commercial Joint Stock Bank (BAC A BANK) was honoured to be granted the award of Top 5 Banks with the largest foreign exchange trading volume in Vietnam on FX matching year 2023 awarded by the London Stock Exchange Group (LSEG).

By Thanh Dat

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