PERFORMANCE IN 2020
Business performance
At the end of 2020, ABBANK was recorded with VND 116,267 billion and VND 1,368 billion of total assets and profit before tax, respectively (equivalent to 111.3% against that in 2019). Significant and sustainable growth of key business indicators was obtained against 2019.
Assessment table of some 2020 financial indicators
| Items Unit: VND Billion | Actual 2019 | 2020 | |
|---|---|---|---|
| Actual | Plan | ||
| Total assets | 102,487 | 116,267 | 120,000 |
| Loans to Market 1 (excluding Corporate bonds) | 56,956 | 63,446 | 64,496 |
| Deposits from Market 1 (including valuable papers) | 74,786 | 78,128 | 81,052 |
| Profit before tax | 1,229 | 1,368 | 1,358 |
Remarks: Disclosures were based on Audited Separated Financial Statements and rounded
Deposits from Market 1 reached VND 78,128 billion, increasing by 4.47% compared to the same period of 2019. Total loans from Market 1 (including Corporate Bonds) grew 10.2% against that in 2019, fulfilling VND 69,469 billion. Among which, two strategic segments (namely SMEs & individual customers) embraced by ABBANK were recorded with a high growth rate at 21% and 16% against 2019.
Although ABBANK’s Covid-19 epidemic impacted portfolio was modest against the market average level, the customer support policies by reducing interest rate and net interest income were also affected, reducing 3.8% compared to the same period of 2019 and attaining VND 2,345 billion.
Non-performing loan/total loans were continued to be strictly controlled less than 2% following SBV regulations. ABBANK operating performance and safety in 2020 were also assured through indicators such as 1.43% and 16.5% of RoA and RoE, respectively, as required by SBV.
Pursuing the retail banking strategy, action plans to serve individual customers’ and SMEs’ demands were focused to launch right at the beginning of 2020, especially upon the Covid-19 outbreak.
Activeness in designing and developing the proper credit offerings and policies in the epidemic context facilitated ABBANK to further develop its customer base. Balance of medium and long-term financial resources with reasonable costs helped the Bank to provide loan packages with competitive interest rates to such two strategic customer segments, hence, facilitating ABBANK’s credit growth.
In 2020, ABBANK reduced the lending rate by four times and NIM to accompany our customers. Currently, ABBANK was named in the bank groups with the most competitive preference rate in the market such as the lending rate for individual customers, SMEs, corporate customers of just from 5.9%/p.a, 6.5%/p.a and 6.1%/p.a for VND and 2.1%/p.a for USD, respectively.
The Projects aimed to perfect the administration, operation, operating cost reduction, labor capacity improvement, etc., were also launched in 2020 by ABBANK such as Data Governance System, ICAAP, ALM, etc.
Total profit before tax
1,368
VND billion
fulfilling 111.3% yoy
Total assets
116,267
VND billion
fulfilling 113.4% yoy
Deposits from Market 1
78,128
VND billion
4.47% yoy
Total loans from Market 1
69,469
VND billion
10.2% yoy
INDIVIDUAL CUSTOMER OPERATIONS
ABBANK’s individual customer operations were recognized with active breakthrough in 2020
| Items | Actual 2019 | Actual 2020 | % 2020 vs 2019 |
|---|---|---|---|
| Deposits (VND Billion) | 35,554 | 36,188 | 102% |
| Loans (VND Billion) | 25,122 | 29,223 | 116% |
| Number of customers (person) | 970,085 | 1,071,554 | 110% |
| AB Ditizen active (installation turns) | 38,000 | 110,000 | 290% |
| Priority Revenue (VND Billion) | Undeveloped | 400 | |
| Credit Card (cards) | 4,638 | 7,570 | 163% |
ABBANK’s individual customer operations have obtained breakthrough achievements in 2020 in 02 key business lines as follows: Individual customers’ loans obtained VND 29,223 billion, increase by 16% against 2019; deposit reached VND 36,188 billion, increase in 2% against 2019. In addition, according to the Sustainable development objectives of ABBANK in the period of 2021 - 2025, the individual customer division had implemented strategic initiatives through attracting and strengthening relationships with high-end individual customers through building new ABBANK PRIORITY brand identity, implementing specialized products for customers such as ABBF Fund Certificates... The individual customer division had made great efforts to closely pace with Business Units (BUs) in any promotions and offering the optimal financial product packages as well as professional service packages to each customer.
2020 was recorded with ABBANK’s issued preferential loan packages with powerful competition policies in the market. Particularly, the Preference Loan - Trusted Interest package with a loan limit of VND 3,300 billion; the Business Loan - Quick Prosperity with a loan limit of VND 5,000 billion.
Service fee collection products were significantly developed by ABBANK such as investment and remittance products with attractive service charge policies for BUs and salesperson. Accordingly, product development was recorded with impressive achievements as follows:
- The Overseas currency exchange product strongly growth in 2020.
- Investment product sales increased approximately VND 2,000 billion upon 03 months of launch.
- 17/165 BUs had APE (Annual premium equivalent) over VND 1 billion/year.
Besides consolidate the sales policies and product development strategy, ABBANK also promoted the emulation programs and organized the sales thinking improvement training courses/meetings for the sales task forces in 2020. Specifically:
- 14 continuous emulation programs developed for BUs and sales task forces.
- 120 Insurance Days.
- 200 business development meetings & seminars.
- 20 cross-sales and insurance files skill training courses, etc.
Large Corporate Customer Operations
Owing to digital technology application, ABBANK’s smart financial transaction and cash flow management product quality was successfully improved. Hence, the customers were supported to obtain the effective and flexible management of financial resources conveniently and safely with no geographical distances.
| Items (VND Billion) | Actual 2019 | Actual 2020 | % 2020 vs 2019 |
|---|---|---|---|
| Deposits | 35,498 | 37,281 | 105% |
| Loans (including Corporate Bonds) | 25,331 | 25,018 | 99% |
| Revenue from services (including guarantee services) | 117 | 101 | 86% |
In 2020, Total loans of corporate customers reached VND 25,018 billion. In addition, to sharing support for Covid-19 affected customers, to obtain the sustainable and safe growth of loans, ABBANK focuses on developing the customers with a healthy financial background, operating fields with high potential development, prioritized categories under the Government policies.
Deposit from the corporate customers was recorded with VND 37,281 billion. Deposit interest rates and scales were actively reduced to save deposit costs and improve the operating performance.
Total service charge from the corporate customers was recorded with VND 101 billion in 2020.
Regarding services field, high technology content products were continued to be invested, upgraded and developed under the digital banking trend. For the strategic customer, Groups and Corporations, the required cash flow management services and ERP (Enterprise Resource Planning) system were designed and developed to help the enterprises to make more effective concentration on financial resources and realtime cash flow management of concentrated account and carry-forward accounts. Moreover, e-Banking services were also provided with 03-tier security to successfully satisfy the most strict security standards on online transactions for the Groups and Corporations.
(SMES) OPERATIONS
| Items | Actual 2019 | Actual 2020 | % 2020 vs 2019 |
|---|---|---|---|
| Loans (VND Billion) | 12,425 | 15,079 | 121% |
| Deposits (VND Billion) | 3,735 | 4,658 | 125% |
| Total fees income (VND Billion) | 96.8 | 104.6 | 108% |
| Net revenue (VND Billion) | 349.1 | 413.8 | 119% |
| Number of customers (person) | 27,395 | 30,012 | 110% |
Note: Fees income included guarantee services
In the context that 2020 Vietnam economy was impacted by the pandemic, SME operations were still recorded with a relatively high growth rate. The growth of loans and deposits reached over 21%-25% against the last year. Among these, SMEs’ closing loan balance increased to 21%, nearly 9% higher than the growth rate of the entire banking sector’s loans. Especially, the average outstanding loan balance growth rate reached 26% against 2019.
2020 was launched with ABBANK credit portfolio structuring and perfecting by target customer segment groups, designing and developing 02 new products from the Special Product Kits for the super-small corporate customer segment, namely: SSE Bizloan and SSE Flex, characterized by: all-in-one and diversification of borrower’s capital demands (supplement of working capital, L/C issuance, guarantee, investment into fixed assets and workshop), optimizing the processing time, short-listed profile list, simplified procedure to be more suitable with the enterprises’ business (small operation scale, mostly developed from the household business). After launching over 07 months, the total loans of such two new products contributed over 8% of total loans of SMEs key product list. At the end of 2020, the outstanding debt balance of such key products was recognized with the growth rate of over 175% against 2019, increasing from 22% to 32% in total loans of entire SMEs segment.
BANKING TECHNOLOGY OPERATIONS
Safe, smooth and stable on Banking Operations were assured to facilitate the Bank's sustainable development.
One of the outstanding plans of banking technology development to make ABBANK become one of the local leading retail banking, one of the keys is to enhance Digital Banking development.
Particularly, the following projects were successfully launched in 2020 by ABBANK such as: Enhancing new functions of AB Ditizen app, developing LOS 1.5 system with credit grant procedure for individual customers, successfully upgrading Core Banking – T24 system to R19 version, completing the BI/ MIS governance reporting system, Concentrated Treasury Management Application, upgrading ABBANK website, “Asset procurement investment and management system” in entire ABBANK system.
Besides, ABBANK also continued investment, operation and maintenance of security solutions to ensure safe transactions for the Bank and our customers such as Completing the safety and security surveillance and early warning for the technology systems at ABBANK, assessing the security for all web-based applications of the Bank, operating Soft - OTP for Mobile Banking and Internet Banking applications, 3D secure for Credit Card Payment through SBV regulations on e-payment transactions, assessing and re-issuing the PCI DSS 2020 card data security certificates, ISO 27001 certificates.
24/24 operation, administration and monitoring of IT application/ infrastructure were always initiated to ensure a continuous, stable, safe and secured system. Security and monitoring under IT policy were regularly conducted by updating patches, managing system changes, launching solutions and satisfying the requirements under the SBV’s circulars and international standards such as PCI DSS and ISO27001, launching solutions to enhance ABBANK security safety such as Privilege Account Management System, Concentrated Data Storage and Backup System.
ITIL standard-conformity operation was applied to the IT service management and supply, improving the receiving and supporting channel quality through SDP application and gradually improving IT service administration and support quality.
The systems’ operating capacity was improved to satisfy the Bank's development demand by rehearsing the Data Recovery Plan (DRP) twice per year with main and backup Data Center systems; policies and procedures under SBV’s circulars and regulations were updated and promulgated.
ORGANIZATION AND HUMAN RESOURCES
RECRUITMENT AND PERSONNEL MANAGEMENT
Human resources and staff management are key in rearranging resources effectively.
2020 was recorded with recruitment’s great contribution to satisfy the human resources demand the entire ABBANK system, especially BUs and key operations of the Bank's Head Office.
ABBANK has attracted senior and experienced talents for the key management positions (priority for jobs related to Business Development and Governance) to further enhance ABBANK's high - quality human resources.
Regarding HR management and recruitment, ABBANK focused on recruiting the right people, assigning them to the right positions and meeting the business objectives. Accordingly, the Service- Level Agreement (SLAs) of the Human Resource Management Division is the guarantee of a comprehensive human resource service to meet the requirements of human resource service in general and recruitment and staffing in particular.
The year 2020 also witnesses ABBANK’s review of overall functions and tasks of HO-Units to operate the Project on “Improving ABBANK organization and operation performance”. Accordingly, Human resources and staff management are key in rearranging resources effectively.
Labor relation
Great importance was always attached to the friendly, efficient, transparent and highly responsible working environment for all employees to offer the best services to the highest satisfaction of the customers.
In 2020, human resources development was oriented with the spirit of unity, timely motivation and bonus, facilitating to upholding the capacity of each ABBANKer in contributing values to the overall development of ABBANK.
At ABBANK, each staff has the opportunity to experience the work suitable with their professional capacity, is encouraged to contribute their initiatives to improve the quality and efficiency at ABBANK and promote ABBANK business activities.
Efforts and achievements of employees are timely recognized and rewarded through adjustment of the employee performance evaluation system to identify important roles and responsibilities of staffs at various levels, creating a streamlined and consistent workflow for internal collaboration and coordination, linking all staffs to the system in order to ensure high productivity.
ABBANK aims to improve the quality of human resource services through the following activities: Application of information technology in human resource management; Improving the quality of the team of professional personnel, training and improving the personnel management capacity of management levels.
HUMAN RESOURCE TRAINING AND DEVELOPMENT
ABBANK strives to pursue the goal of developing the learning community at ABBANK, continuously improving and developing new forms, content and specific implementation programs.
Human Resource training and development is one of ABBANK’s strategic priorities to satisfy the Bank’s development with a retail-oriented and service charge increasing strategy. The key training targets at the Bank include: to develop leadership capacity, standardize staff, develop the next successors and improve sales and business management capabilities.
Improving the HR quality in terms of expertise and skills is a key task in the HR development of ABBANK. In the roadmap to develop the learning community at ABBANK, ABBANK has organized more than 747 courses for more than 25,152 ABBANKers in 2020; focus on training and development leadership teams, professional training and soft skills. ABBANkers have the opportunity to easily access a wide variety of training programs, actively support their self-study and personal career development.
ABBANK also focuses on promoting corporate values and culture through regular training programs and activities outside the Bank. All new employees of ABBANK are trained, including the introduction of corporate culture values and policies of the Bank. Existing employees are provided regular and intensive courses to improve simultaneously professional skills and soft skills. ABBANK always strives to ensure employees have a variety of internal communication channels to communicate and feedback information, such as periodic seminars with Management Teams, online forums, etc.
Investment and
project performance
2020 was recorded with sales revenue of Government Bond, nearly VND 111,600 billion, increase in nearly 4% against 2019; sales profit obtained VND 782 billion, increase in 137% against 2019 and fulfilling 137.4% of the 2020 plan.
Sales revenue of Government Bond
111,600
VND billion
4% yoy
Sales profit
782
VND billion
137% yoy
KEY INVESTMENTS
In 2020, ABBANK continued to actively review and re-evaluate the entire efficiency of its investment portfolio. With a safe, prudent and effective investment motto, ABBANK continuously looked for opportunities and released a series of divestment plans for disqualified investments that were difficult to control and ineffective.
Currently, the biggest investment of ABBANK was VND 260 billion into its Subsidiaries with an annual distributed profit of 10-15%/p.a.
In the 2020 Government Bond market, ABBANK was still a key player with sales of nearly VND 111,600 billion, equivalent to 6.6% of trading value in the entire market, the sales profit reached VND 782 billion, increased in 137% against 2019 and fulfilling 137.4% of 2020 plan.
ACTIVITIES AND FINANCIAL POSITION OF SUBSIDIARIES, AFFILIATES ABBANK
Asset Management One Member Company Limited (ABBA): A subsidiary 100% owned by ABBANK. ABBA’s core businesses are to receive and manage non-performing loans, outstanding loans and loan security assets related to ABBANK’s debts, etc.
The 2020 profit before tax of ABBA obtained nearly VND 60 billion, decreasing approximately VND 4 billion against 2019. This result was relatively promissory in the context that the 2020 economy was adversely impacted by the Covid-19 pandemic.
FINANCIAL POSITION
Consolidated Total assets
116,367
VND billion
13% yoy
Consolidated revenue
8,850
VND billion
7% yoy
Unit: VND billion, %
| Separated and Audited | |||
|---|---|---|---|
| Items | 2020 | 2019 | % change |
| Total assets | 116,267 | 102,487 | 13% |
| Revenue | 8,803 | 8,245 | 7% |
| Statutory obligations | 49 | 106 | -54% |
| Profit before tax | 1,368 | 1,229 | 11% |
| Profit after tax | 1,092 | 969 | 13% |
| Items | Remarks | ||
| Capital | |||
| Charter capital | 5,713 | 5,713 | |
| Total assets | 116,267 | 102,487 | |
| Capital adequacy ratio | 8.98% | 10.5% | Under Circular No. 19/2017/TT-NHNN in 2019 Under Circular No. 41/2016/TT-NHNN in 2020 |
| Solvency | |||
| Liquidity reserve ratio | 19.50% | 25.8% | Under Circular No. 19/2017/TT-NHNN |
Unit: VND billion, %
| Consolidated and Audited | |||
|---|---|---|---|
| Items | 2020 | 2019 | % change |
| Total assets | 116,367 | 102,557 | 13% |
| Revenue | 8,850 | 8,296 | 7% |
| Statutory obligations | 54 | 113 | -52% |
| Profit before tax | 1,403 | 1,274 | 10% |
| Profit after tax | 1,118 | 1,001 | 12% |
| Items | Remarks | ||
| Capital | |||
| Charter capital | 5,713 | 5,713 | |
| Total assets | 116,367 | 102,557 | |
| Capital adequacy ratio | 9.05% | 11.07% |
Under Circular No. 19/2017/TT-NHNN in 2019 Under Circular No. 41/2016/TT-NHNN in 2020 |
| Solvency | |||
| Liquidity reserve ratio | 19.50% | 25.82% | Separated |
SHAREHOLDERS STRUCTURE,
CHANGES IN OWNERS’ EQUITY
| TOTAL SHARtES | SHARE TYPE | NUMBER OF UNRESTRICTED SHARES | NUMBER OF RESTRICTED SHARES (*) |
|---|---|---|---|
| 571,311,355 | Ordinary share | 251,917,491 | 319,393,864 |
Remarks: (*) - The number of restricted shares according to the provisions of the law, the Charter and the commitment of the owner.
Total shares
571,311,355
Shareholder structure (as of 31/12/2020)
| No. | SHAREHOLDER NAME | TOTAL SHAREHOLDING | OWNERSHIP PERCENTAGE | NUMBER OF SHAREHOLDERS |
|---|---|---|---|---|
| I | Domestic shareholders | 399,890,859 | 70% | 6,190 |
| 1 | Geleximco Group - Joint Stock Company | 74,222,415 | 12.99% | 1 |
| 2 | Shareholder as other organizations | 27,505,281 | 4.81% | 25 |
| 3 | Shareholder as individual | 298,163,163 | 52.2% | 6,164 |
| II | Foreign shareholders | 171,420,496 | 30% | 2 |
| 1 | Malayan Banking Berhad (Maybank) | 114,265,019 | 20% | 1 |
| 2 | International Finance Corporation (IFC) | 57,155,477 | 10% | 1 |
| TOTAL | 571,311,355 | 100% | 6,192 |
REPORT ON ENVIRONMENTAL
AND SOCIAL ISSUES
COMPLIANCE WITH ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES
Environmental and Social Management System (ESMS) for the international credit - granting operations under the guidance of the International Finance Corporation (IFC) was implemented by ABBANK.
Regulation on Environmental and Social Management System is a good background for ABBANK to effectively manage the environmental and social affairs of the sponsored projects, as the practical action of ABBANK in compliance with the Directive No. 03/CT-NHNN of the State Bank of Vietnam dated 24 March 2015 on promoting green credit growth and environmental – social risks management in credit granting activities. It also demonstrates ABBANK social responsibility commitment towards the economy with green and sustainable development objectives.
Read moreDEVELOPMENT OF “GREEN” CORPORATE CULTURE
In 2020, all ABBANKers were continued to be widely communicated with the ABBANK Green lifestyle development in accordance with the strategy to be launched in 2019. In the system, the used battery collection and green work place decoration activities were actively responded by ABBANKers, contributing to corporate culture development, affirming ABBANK brand prestige in the hearts of the employees and customers.
Read more
Employee
policies
In addition, to fully complying with State labor regulations, great efforts have been being made to successfully develop better remuneration policies for employees by ABBANK. The annual ABBANK care program has always been expected by ABBANKers, showing the special benefit policy of ABBANK for ABBANKers by continuously developing and expanding the benefits for employees over the years.
REPORT ON LOCAL COMMUNITY
RESPONSIBILITY
Nearly VND 9.5 billion offered the warm and happy New Year to over 3,000 local persons from localities, nationwide during 11 years of the Tet An Binh Charity Program.
Nearly VND 80 billion in total was invested into the social security activities by ABBANK in the past time.
2020 was continued to be recorded with ABBANK involvement as the “Great Leave” to accompany with the “Pair of Loving Leaves” and brought “torn leaves” across the country with scholarships with a total cost of up to VND 600 million.
At the beginning of 2020, ABBANK timely supported the nationwide epidemic prevention/control, financing nearly VND 6 billion for Covid-19 prevention and control budget, in which: VND 3 billion was supported to the Vietnam Fatherland Front Committee in HCMC; VND 2 billion was injected to Bach Mai Hospital (Hanoi) and financial support was injected to the Pandemic Prevention and Control Board in Da Nang and Hue.
Since August 2020, ABBANK cooperation was also initiated to finance the construction of a functional entertainment area at the Pediatric Orthopedic Surgery Department and Department of Craniofacial and Plastic Surgery under Vietnam’s National Hospital of Children, Hanoi, with an expenditure of nearly VND 270 million. It was conducted with the hope that children have entertainment space and the treatment and post-surgery recovery process are enhanced. In October 2020, the charity blood donation program was launched by ABBANK in cooperation with Vietnam’s National Hospital of Children in Hanoi was widely responded and participated by ABBANKers and its customers. Accordingly, over 100 blood units were contributed to the Hospital’s blood bank in the difficult phase due to Covid-19 pandemics.
Following the Tet An Binh Journey to be annually launched, the Tet An Binh Charity Program 2020 with the topic of “Tet An Binh - Liter of Light” was held by ABBANK in cooperation with the Liter of Light Vietnam Project to offer the solar energy lamp system, including 40 pylons and big bulbs, 60 pier sets and small bulbs, 100 portable lamps using solar energy and others with the total value of nearly VND 400 million at 5 poor hamlets where electricity is not accessed at Dak O commune (Bu Gia Map district, Binh Phuoc province), facilitating to light the public areas and approach road to the community areas of 5 poor hamlets (Bu Bung, Bu Khon, Hamlet 3, Hamlet 4 and Hamlet 10) as well as supporting the patrol tools for civil defense task forces at the border area of Bu Gia Map National Forest. Within 12 years from 2008 to the end of 2020, VND 79.8 billion was spent on social security activities. The social security activities of ABBANK are gradually going towards a sustainable direction, bringing positive effects and lasting effects.
Report on green capital market operation
as guided by the State Securities Commission
ABBANK was highly aware of the great importance and benefits offered by the Green Credit such as minimization of bad debts, enhancement of financial stability and Bank prestige protection in the market. Currently, ABBANK is gradually implementing green credit programs and policies to gradually increase the proportion of green credit in its credit portfolio structure as well as expand new business opportunities.
Furthermore, ABBANK will coordinate with domestic and foreign institutions and agencies to implement and evaluate the implementation of Environmental and Social Risk Management in credit grants, the development of green credit enhancement solutions and supporting the enterprises to perform the green growth.
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