InvestyASIA COMMERCIAL JOINT STOCK BANK - Investy

ASIA COMMERCIAL JOINT STOCK BANK

ASIA COMMERCIAL JOINT STOCK BANK


Project Description

MAIN BUSINESS

  • Mobilizing capital;
  • Granting credit;
  • Financial investment and cooperation;
  • Trading foreign currencies;
  • Providing financial services: deposit, cards, guarantee, international payment, internet banking, consumer finance;
  • Providing corporate consultation and asset management services;

MARKET POSITION

  • By 31 December 2017, ACB has an equity of VND16,031 billion, and a total asset of VND284,000 billion. In terms of distribution network, ACB owns 354 transaction offices in 47 provincies and cities of Vietnam.
  • In this year, ACB achieves a pretax profit of VND3,225 billion, and a capital adequacy ratio (CAR) of 11.49% while the return on equity (ROE) reaches 14.13%. ACB occupies 3% of the total credit marketshare.

GROWTH STRATEGY

  • Applying advanced technologies to banking services, data center and integrated services to maintain the position as a pioneering bank in technologies;
  • Establishing strategic partnership relationship with large-scale Groups to reinforce and expand customer ecosystem;
  • Taking advantage of customer ecosystem among value chain and big customers to improve business performance and competitiveness against other banks;
  • Developing new channels, especially digital banking, optimizing sale model to improve sale effectiveness among the ecosystem, and promoting cross-selling, and up-selling channels;

PROSPECTIVES

  • Vietnam is implementing the socio-economic development plan in the period 2016-2020 under the context of participation in Asean Economic Community (AEC), Trans-Pacific Partnership Agreement (TPP) and Free Trade Agreements (FTA) with Eurasian Economic Union, Korea and Japan. The integration will create opportunities for the development of Vietnam economy and its banking sector. In addition, the State Bank of Vietnam continues to take measures to restructure banking system in combination with bad debt settlement in the period 2016-2020.
  • Development of banking sector is supported by positive macroeconomic indicators in Vietnam, occupational shift of younger generation from agriculture to production and services, increasing urbanization, growth of medium-class, increase in income and consumption and upward trend in disposable income. There is an increase in the number of bank account owners, bank cards and non-monetary transactions through ATM and POS.
  • Banking sector benefits from high rates of internet access and smart-phone ownership in Vietnam. with application of technological solutions, banks have better access to non-users of banking services with cheaper cost instead of establishing bank branches in remote areas.

RISK

  • The Circular No.36/2014/TT-NHNN creates number of obstacles for the banking system. Specifically, it restrains credit limit, investment in Government Bond, rate in payment capability, rate of shorterm capital for medium and longterm loans. The circumstance requires banks to restructure its asset portfolio to comply with the legal regulations. Such restructuring affects business strategies and performance of banks dramatically. Furthermore, there are difficulties in bad debt resettlement due to lack of outside real financial sources into the banking system. Meanwhile, legal framework for bad debt transaction shows its shortcomings.