Asia Commercial Joint Stock Bank (ACB) Q3 2024 earnings summary

Executive summary

• Achieved 9M2024 profit before tax of VND 15.3 trillion, up 2% YoY, reaching 70% of annual target.

• Total assets reached VND 777,393 billion as of 30 September 2024, up from VND 718,795 billion at year-end 2023.

• Loans to customers increased to VND 554,908 billion, up 13.8% from VND 487,602 billion at 31 December 2023.

• Deposits from customers rose to VND 512,124 billion, compared to VND 482,703 billion at year-end 2023.

• Maintained strong asset quality with NPL at 1.5%, among the lowest in the market.

Financial highlights

• NIM declined to 3.82%, down 18bps YoY, due to intense competition and slow cost of funds reduction.

• Net interest income for the nine months was VND 20,714 billion, up from VND 18,670 billion YoY.

• Net fee and commission income reached VND 2,370 billion, up from VND 2,195 billion YoY.

• Deposit growth outperformed the market, driven by strategic retail segments.

• Operating costs were well controlled, supporting business growth.

Outlook and guidance

• FY2024 profit growth expected at 5% YoY.

• NIM projected to decrease further compared to 2023.

• Full credit quota utilization planned; NPL ratio to remain below 1.5%.

• The bank continues to focus on credit growth, risk management, and maintaining strong capital adequacy.

• Emphasis on digital transformation and expanding retail banking services.