Eximbank’s S&P outlook revised to stable

Standard & Poor's Global Ratings has revised Eximbank's outlook to stable from negative

The stable outlook reflects Standard & Poor’s Global Ratings’ (S&P Global Ratings) expectation that the bank will continue its restructuring efforts, characterised by selective loans growth and strict underwriting standards, over the next 12-18 months.

The resilience of Eximbank's financial profile has improved on the back of a solid rebound in profitability in 2016 and 2017, and the expected benefit from the restructuring of its business and risk management.

According to S&P Global Ratings: “Eximbank's new management team has reinvigorated the bank with a well-executed restructuring plan. The plan primarily realigns the bank to its traditional strengths in trade financing and institutes stricter risk management and cost controls.”

According to Yutaka Moriwaki, head of the Restructuring Project and member of the Board of Directors, “When we started the restructuring plan called “New Eximbank” at the end of 2016, we did not have a clear business strategy or efficient organisation to support business development, nor a fair and transparent HR system to motivate the staff. During the past two years, we have developed our mid-term strategy to become a leading bank, while creating a performance-oriented HR system, so that all the bank managers and the staff share the same direction to improve our bank. We have also continued to transform the organisation both at the head office and branch networks, so that we can better serve our customer’s needs.”

“Even though we are still on the way to complete the restructuring plan, we hope we can get Eximbank in a better shape in the near future, not only by leveraging our strength but also by enhancing corporate governance and risk management,” he said.

Nguyen Canh Vinh, standing deputy CEO, added: “The revision "negative” to “stable" by S&P Global Ratings reflects that Eximbank growth has been on the right track after a period of hardships. With the replacement of core banking in September, customer service and risk management will be strengthened in order to return Eximbank among the top commercial banks in Vietnam.”