Asia Commercial Joint Stock Bank (ACB) Q4 2024 earnings summary

Executive summary

• Achieved profit before tax (PBT) of VND 21 trillion in 2024, up 5% year-over-year, reaching 95% of the annual target.

• Lending grew 19.1% year-over-year to VND 581 trillion, the highest growth in a decade.

• Deposit base expanded 11% year-over-year to VND 537 trillion, outperforming the market.

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

• ROE stood at 21.7%, ranking #2 among banks.

Financial highlights

• Net interest income (NII) grew 11% year-over-year to VND 27,795 billion despite NIM compression.

• NIM declined 27bps to 3.62% due to intense competition and lower lending rates.

• Non-interest income (NFI) declined year-over-year due to one-off incomes in 2023, but service fee income increased 11%.

• Cost-to-income ratio (CIR) remained well controlled, with operating costs optimized for growth.

Outlook and guidance

• NIM expected to remain broadly stable in 2025.

• Full utilization of credit quota (16%) planned for 2025.

• NPL ratio targeted below 1.5% and ROE to stay above 20%.

• Profit growth guidance to be published at AGM 2025.