Asia Commercial Joint Stock Bank (ACB) Q1 2025 earnings summary

Executive summary

• Profit before tax for Q1 2025 reached VND 4.6 trillion, down 6% year-over-year, achieving 20% of the annual target.

• Profit after tax for Q1 2025 was VND 3,536,406 million, a decrease from Q1 2024.

• Total assets reached VND 873,259,535 million as of 31 March 2025, up from year-end 2024.

• Lending grew 3.1% year-to-date to VND 599 trillion, while deposits increased 2.4% to VND 550 trillion.

• ROE remained high at 20.8%, among the top in the sector.

Financial highlights

• Net interest margin (NIM) compressed to 3.5%, down 21bps from 2024.

• Net interest income for Q1 2025 was VND 6,118,022 million, down year-over-year.

• Non-interest income was the main driver of revenue growth, led by service fees and FX income.

• Operating costs were well controlled, with a cost-to-income ratio (CIR) at 32%.

• Allowance expenses for credit losses rose to VND 615,637 million from VND 506,508 million year-over-year.

Outlook and guidance

• Credit demand remains subdued, especially among SMEs, with a focus on quality growth over rapid expansion.

• Continued prioritization of commerce and manufacturing sectors for lending growth.

• Strategic emphasis remains on expanding lending, deposit mobilization, and digital transformation.

• The bank continues to focus on risk management, credit quality, and compliance with regulatory requirements.