Asia Commercial Joint Stock Bank (ACB) Q2 2024 earnings summary

Executive summary

• Achieved profit before tax (PBT) of VND 10.5 trillion in 1H24, up 5% year-over-year, reaching 48% of the annual target.

• Total assets reached 769,679 billion VND as of June 30, 2024, up from 718,795 billion VND at year-end 2023.

• Lending reached VND 550 trillion, marking the highest growth in the last decade.

• Maintained strong market positions: #1 in private retail lending, #2 in retail deposits among private banks.

• Equity rose to 74,793 billion VND, reflecting capital increases and retained earnings.

Financial highlights

• Deposit balance at VND 512 trillion, up 6% year-over-year; CASA ratio at ~22.4%.

• Net interest income for H1 2024 was 13,833 billion VND, up from 12,461 billion VND year-over-year.

• NIM decreased to 3.77%, down 11bps from 4Q23, reflecting high competition and lower credit demand.

• Cost-to-income ratio (CIR) remained low at 31% in 2Q24, and 33.8% for H1 2024, reflecting effective cost management.

• Earnings per share (EPS) for H1 2024 was 1,785 VND.

Outlook and guidance

• Targeting 100% of PBT plan (VND 22 trillion) for 2024.

• NIM expected to remain stable or slightly decrease; full credit quota (16.1%) to be utilized.

• NPL ratio expected to stay below 1.5%; ROE to remain above 20%.

• Loan and deposit rates may rise slightly but not significantly in 2H24.