Asia Commercial Joint Stock Bank (ACB) Q4 2023 earnings summary

Executive summary

• FY2023 PBT was VND20,067,999 million, meeting 100% of the annual target; ROE was 24.3%, the second-highest among banks.

• Audited profit after tax rose to VND16,044,733 million from VND13,688,193 million; the auditor issued an unqualified opinion.

• Total assets reached VND718,794,589 million and customer loans VND482,234,900 million at year-end.

• Credit growth was 15.2% versus the industry’s 13.7%; deposit growth was 16.3% versus 14.2%.

Financial highlights

• Consolidated NII was VND24,959,570 million, up from VND23,533,529 million; NIM was 3.52%, down 38 bps YoY.

• Interest and similar income was VND52,346,796 million; interest expense was VND27,387,226 million, up from VND17,165,305 million.

• Net fee and commission income was VND2,922,337 million; service fees were VND3,526bn in 2023.

• Operating profit before credit-loss allowances was VND21,872,230 million; credit-loss expense rose to VND1,804,231 million from VND70,814 million.

• CIR improved to 33% from 35%; operating costs declined 6% QoQ in 4Q23. Net gain from investment-securities trading rose to VND2,647,140 million.

Segment performance

• Banking generated FY2023 PBT of VND19,434,103 million, versus VND17,021,847 million in FY2022.

• FY2023 PBT by geography: Southern region VND15,885,491 million, Northern region VND2,569,585 million and Central region VND1,529,292 million; eliminations were VND83,631 million.

• Ranked #1 among private banks in retail lending and #2 in retail deposits; customer base reached 7.1mn.

• Retail lending market share was 3.6%.