Greener credit headlining BAC A BANK’s modernisation

BAC A BANK’s deputy general director Chu Nguyen Binh (left) received the green credit award

Established in 1994, locally invested BAC A BANK has long been focused exclusively on providing investment consultancy for the high-tech agricultural sector.

On May 26, the bank gained a green credit award at the Vietnam Outstanding Banking Awards 2023 organised by International Data Group and the Vietnam Bank Association in Ho Chi Minh City.

The award is aimed at honouring banks whose policies and products are geared towards environmentally friendly businesses and sustainable development.

BAC A BANK was honoured in the green credit category of for its capacity in investment consultancy in sustainable development such as high-tech agriculture, healthcare, and education.

The projects invested by the bank have increasingly asserted their brand position in domestic and foreign markets, and simultaneously contributed to economic development in many localities through specific project groups such as dairy farming and high-tech milk processing; producing fruit juice and purified water; medicines and supplementary foods; sustainable forest development; education; and medical and healthcare.

For example, since 2009, under the bank’s investment, TH Group has been implementing its $1.2 billion state-of-the-art dairy cow farm and fresh milk processing plant in the central province of Nghe An.

With a capacity of 500,000 tonnes of fresh milk a year, the project has been recognised as “The world’s largest high-tech centralised dairy farming and processing complex” by the World Records Union – Worldkings, and has received an “Enterprise with High-tech Application” certificate from Vietnam’s Ministry of Agriculture and Rural Development.

BAC A BANK accompanies TH Group as an investment consultant to pioneer the green economic model, and circular economy in high-tech agriculture.

In the circular production chain at TH Group, the by-products and waste of one process become the inputs for another, where the material lifecycle is maintained as long as possible before being released into the environment, thereby reducing emissions. TH also undertakes an extended producer responsibility for environmental impact control.

In 2022, BAC A BANK demonstrated its capacity and strategic vision in investment consulting services in sustainable development through TH Group’s projects, building a clean food factory in the northern province of Thai Binh, and officially owning a similar facility in the northern province of Bac Ninh.

Additionally, the project of a high-tech dairy farming and milk processing complex in Russia with a total investment of $2.7 billion has its first phase completed and is expected to be full completed in January 2024.

Another project is to develop beef farming in Australia, with a total investment of $87.79 million. This project covers three farms over one million hectares with a herd of about 65,000 cows. Both projects mark the success of the bank in investment consultancy in the international market.

Staff development

Meanwhile, the business philosophy of the bank is towards making staff happy, and the trade union at the bank has made every effort to fulfill the task of taking care of employee lives, and contributing to business growth.

“Trade union activities are carried out in accordance with the direction of higher authorities. I hope that the bank will continue to implement policies to take care of the life and welfare of its employees,” said Nguyen Thanh Trung, head of the Organisation Committee of the Vietnam Bank Trade Union said.

At the bank, trade union activities receive close attention, direction, and positive support from the Vietnam Bank Trade Union and the bank’s leadership.

The executive committee of the bank’s trade union promotes unity and solidarity, while upholding a sense of responsibility for the work. It has directed and organising the implementation of the resolution of the sixth Trade Union Congress and other resolutions. Through its practical activities, the trade union has gradually proclaimed its role and position at the unit, so all trade union activities are facilitated and receive bigger attention from the bank’s leadership.

Currently, the bank has a total of 3,050 employees, of which the number of trade union members accounting for over 98 per cent. The proportion of female employees accounts for over 59 per cent. There are also 63 union members who are Party members.

Fresh goals

In April, the bank successfully organised its AGM for 2023 in Nghe An province, with a series of issues discussed and resolved.

The Board of Management has developed a business plan for the year with adjustments in line with the operation situation and business environment forecast for the year.

New targets for this year include an on-year increase of 7.9 per cent for total assets, 21.2 per cent for charter capital, 5 per cent for customer deposits, and 9.6 per cent for loans. In addition, there will also a rise of 59 per cent in revenue from services and guarantees. Pre-tax profit will reach $47.82 million and the number of transaction points will increase by 12 points.

At the AGM, the board submitted to shareholders and approved the plan to increase charter capital to nearly VND9.9 trillion ($430.43 million) in two forms: issuing ordinary shares to pay dividends to existing shareholders, and offering common shares to existing shareholders.

The AGM also agreed on the share dividend rate in 2022 at 7.5 per cent, with money coming from the remaining after-tax profit of the bank in 2022, after making provisions for funds.

In 2022, given difficulties in the domestic financial market and interest rate fluctuations in the last months of the year, the bank proactively and flexibly operated its activities, which obeyed targets, capital adequacy ratio and operational safety as per SBV regulations. Its operations remained stable, and it recorded safe and sustainable growth.

By the end of 2022, the banks’ total assets reached nearly $5.65 billion, with charter capital standing at over $353.47 million, and capital mobilisation increasing by 6.1 per cent on-year.

Over the past year, the bank’s credit growth has followed SBV regulations on credit limits, and the lender’s credit quality has increasingly improved.

The bank’s bad debt has continued to be well controlled, with a bad debt ratio of 0.55 per cent, down by 0.22 per cent as compared to 2021.

Its profit before tax reached $44.87 million, completing 103.2 per cent of the business plan assigned by the AGM.

Investment consulting activities have also continued to be promoted for projects related to high-tech agriculture, healthcare, education, and tourism. These sectors have greatly benefited the community.

BAC A BANK launches new pro-business initiative BAC A BANK has implemented a credit incentive programme to assist businesses applying for short-term loans. This is in response to calls from the State Bank of Vietnam (SBV) to create more favourable conditions that will optimise investment and development opportunities.

BAC A BANK offers new credit cards with incentives On March 21 in Hanoi, Bac A Commercial Joint Stock Bank (BAC A BANK) launched an international credit card branded with MasterCard, with two card lines including BAC A BANK MasterCard Rewards Gold and BAC A BANK MasterCard Cashback Platinum.

BAC A BANK gets ball rolling for a successful year BAC A BANK last week successfully held its AGM for 2023 in the central province of Nghe An, with a series of issues discussed and resolved.