BOARD OF MANAGEMENT’S REPORT AND ASSESSMENT

Some highlights of ABBANK’s 2020 business performance were recorded with orientation to focus on retail banking and proper business solutions and mechanisms, specifically:

• At the end of 2020, total loans to borrowers as economic organizations and individuals obtained VND 69,469 billion, an increase of 10.2% against 2019. Deposit from economic organizations and individuals fulfilled 96.4% of the entire 2020 goal with VND 78,128 billion, recording the growth rate of 4.5% against 2019.
• Total operating income in 2020 reached VND 3,775 billion, an increase of 4.3% compared to the 2019 fulfillment.
• Cost Income Ratio (CIR) was strictly managed and improved at 50%.
• By end 2020, ABBANK’s profit before tax reached VND 1,368 billion, fulfilling 101% of the plan assigned by the General Meeting of Shareholders, recording the growth rate of 11.3% against 2019.

TOTAL ASSETS

Total assets as of 31 December 2020 obtained VND 116,267 billion, an increase in VND 13,780 billion (equivalent to 13.4%) against the end of 2019 and fulfilling 97% of the 2020 plan. The Increase in total assets was mainly originated from loans to customers, accounting for 54% of total assets in the entire system. In parallel with the scale development, ABBANK’s asset quality was always assured and Capital Adequacy Ratio (CAR) was maintained over 8% as prescribed by SBV.

Total assets

116,267 VND billion

13.4% yoy

LOANS TO CUSTOMERS

With retail banking-centered orientation, ABBANK’s recent credit operations were flexibly developed with a series of supporting policies and incentive programs for borrowers. As a result, as of 31December 2020, total loans obtained VND 63,446 billion, an increase of 11.4% against the end of 2019 and fulfilling 98.4% of the 2020 goals. Among which, loans to individual customers were recorded with the growth rate of 16%, putting the individual loans exceeding VND 29,000 billion. Loans offered to SMEs were recorded with the growth rate of 21%. Generally, the retail banking sector increased its proportion to nearly 70% of the loan structure in 2020. Such proportion was increased over 4% against 2019.

DEPOSIT FROM CUSTOMER

Deposit continued to maintain its increasing trend in 2020. The deposit balance obtained VND 78,128 billion, an increase of 4.5% against the end of 2019. A Deposit was also assigned with the key role in the Bank’s capital resource structure to maintain 67% in the past years, decrease 4% against the end of 2019.

The entire system’s deposit operations were driven by factors, namely making use of traditional sales channels and development of new sales channels in combination with suitable interest rate and sales policies for each period. Like other operations, the deposit service from individual customers and SMEs segment were also focused to expand with high density in the deposit from customer structure, obtaining 53% at the end of 2020. It proved that the transformation to the retail banking sector is relatively matched with the credit operations.

DEPOSIT FROM CUSTOMER

78,128 VND billion

4.5% against the end of 2019

PROFIT BEFORE TAX

Closing 2020, the Bank’s profit before tax reached VND 1,368 billion, an increase in VND 139 billion, equivalent to the growth rate of 11.3% against 2019, fulfilling 101% against the assigned plan.

The positive growth of profit before tax was the result of increased operating income combined with tight cost controls.

ASSETS

At the end of 2020, total assets achieved VND 116,267 billion, an increase of VND 13,780 billion, equivalent to an increase of 13.4% against the end of 2019 as outstanding debt balance increased VND 6,490 billion, corresponding to an increase in the credit balance, i.e., VND 6,441 billion. Among which, deposits from individual customers and economic organizations increased VND 3,342 billion, equivalent to increase of 4.5% against 2019, facilitating significant credit growth. This proved that the flexibility in using financial resources offers higher performance and big profit to the Bank.

LIABILITIES

Deposits and loans were actively increased from Credit Institutions (CIs) to satisfy the fund demand. However, the proper financial resource structure was still assured to be well - matched with SBV orientation. An Increase in financial resources to be mobilized from the interbank market aimed to improve the working capital sources, serving for the short-term fund uses, creating the feasible loan turnover and offering higher profit to the Bank. Particularly, bond business and loans were significantly enhanced in both markets in 2020 to increase interest income and others.

ORIENTATION TOWARDS FOCUSED MANAGEMENT TO IMPROVE SERVICE QUALITY AND OPERATING PROCEDURE

2020 was marked with ABBANK’s active IT launch and application in most of the HR management, HR review system, online training, etc., to increase the efficiency and accuracy, reducing HR costs. HR management policies such as recruitment, salary and remuneration, emulation and rewards, job management, labor discipline management, training and development were gradually renovated, systematized and closely associated with the business, facilitating to improve the organization’s governance capacity.

ABBANK continued to implement the centralized management direction, aiming at improving service quality and operational process. Consequently, the organizational structure of business units was gradually improved, focusing on business activities, streamlining operational activities, ensuring transparency and professionalism during operation.

Together with enhancing the business development, the ABBANK brand has been increasingly affirmed and developed by community sharing activities and active contribution to the socialization guidelines in the country’s construction and development. Programs for community and social security were ceaselessly initiated from education, construction of electrical - road - school - medical station, health care, environment physical facilities to support the poor and underprivileged persons, etc. These activities have resulted in positive effects, making a contribution to the improvement of living standards of the people and socioeconomic development, increasing the confidence of the people and local authorities in ABBANK.

In the future, ABBANK shall continue to pursue the orientation of customer-friendly retail bank, closely accompanying with the customer experiences and apply user-friendliness in each product and service, the social-friendly partner in the community responsibility sharing, orienting towards long-lasting and sustainable values. This is one of the critical competitive advantages, facilitating ABBANK’s long-term and sustainable development.