2025 business outlook uncertain: ACB bank chairman

This year will be very challenging, with first-quarter developments unpredictable and market demand sharply decreasing, said Tran Hung Huy, chairman of Vietnam's leading private lender Asia Commercial Bank (ACB).

"Particularly, in early April, the U.S.’s announcement on 46% reciprocal tariffs for imports from Vietnam triggered negative movements in the local stock market, reflecting deep investor concerns," Hung told the private bank's 2025 AGM in HCMC on Tuesday.

"Vietnam is a strong exporter with substantial FDI investments. Therefore, the business outlook for 2025 holds many uncertainties, and this is one of the challenges ACB must address in the remaining months of the year," he added.

ACB plans a dividend payout ratio of 25% this year, including 15% in shares and 10% in cash, maintaining this policy for six consecutive years. After the dividend distribution, slated for the third quarter of 2025, the bank’s charter capital will reach $2 billion.

In 2024, the bank posted a 20% increase in total assets, a 19.4% rise in customer deposits and securities, and a 19% growth in customer loans, all exceeding the year's plans by 4% to 8%, the board of directors reported at the AGM.

However, its pre-tax profit was equivalent to only 95% of the year's target, reaching VND21 trillion ($806.9 million), up 5% year-on-year. Despite the slowdown in growth, ACB maintained 11 consecutive years of growth.

ACB targets VND23 trillion ($883.76 million) in pre-tax profit in 2025, up 9.5% year-on-year. It also aims to increase total assets by 14% to VND985 trillion ($37.85 billion), customer deposits and securities by 14% to VND728.41 trillion, and customer loans by 16% to VND673.6 trillion.

However, the business plan was set before President Trump's April 2 announcement on massive 47% reciprocal tariffs on imports from Vietnam, which shocked many, said CEO Tu Tien Phat. He added that right after the U.S. tariffs had been announced, ACB reviewed its customer portfolio.

ACB's customer portfolio sees individuals account for about 65%, small- and medium-sized enterprises (SMEs) 29%, and the remainder large domestic companies and FDI firms.

Phat noted that the bank continues to maintain a credit growth rate of 16-18%. In addition to its strength in individual customers, the creditor sees large domestic firms and FDI enterprises as highly promising as this group currently accounts for a very small proportion of ACB’s loan portfolio, leaving ample room for further growth.

"The U.S. tariff policy would have a considerable impact on the global economy, including Vietnam, which is affected by exchange rate fluctuations. Overall credit demand across the banking system may slow down, and the net interest margin (NIM) of banks is unlikely to improve in the near term.

“ACB is always prepared for any situation. At the same time, the bank strives to maintain low non-performing loans (NPLs) to increase profitability,” he said.

In the first quarter, ACB recorded a 3% increase in credit, a more than 2% rise in deposits, and positive signals regarding NPLs. The NPL ratio by the end of Q1 was 1.34%, down from 1.39% in the previous year.

Its profit reached 20% of the full-year target. "We expect the profit to improve month by month and quarter by quarter, and to meet the year's target," Phat added.

According to chairman Huy, ACB will continue its 5-year strategy for 2025-2030, focusing on further investment and application of technology in creating new products.

He said the banking system is facing three challenges. First, competition between banks to retain customers becomes increasingly fierce. Second, Vietnam is increasingly opening up the market, and banks' compliance with regulations becomes increasingly strict.

"The third factor is technology. In 2024, AI Gen technology will make outstanding developments, while security and cyber attack technology will become increasingly sophisticated. ACB must continue to invest in these fields. At the same time, it must cash in on such technologies to create new products," he added.

The lender will further promote its strength in the retail segment, while also focusing on developing corporate customers, develop new capabilities and change operational methods for sustainable growth, invest in infrastructure, and apply AI technology in operations and risk management.

Recently, the lender has been heavily investing in its subsidiary ACB Securities (ACBS), raising many questions among shareholders.

Phat stated that the bank had raised its investment in ACBS from VND7 trillion to VND10 trillion ($384.25 million). In April 2025, the investment increased further to VND11 trillion, aiming to make ACBS one of the five largest brokers in Vietnam.

Regarding the sale of the bank’s stake in ACBS, Huy clarified that ACB had previously sought a partner to sell its stake in ACBS, but during the process, the potential partners did not meet the bank's criteria.

In the current context, ACB has canceled this plan and has no intention of proceeding with an initial public offering (IPO) for the securities company.