ABBank targets $42 mln in pre-tax profit, to go public in 5 years

An Binh Commercial Joint Stock Bank (ABBank) has targeted pre-tax profits of VND1 trillion ($41.6 million) this year, up 94.5% year-on-year.

In the 2024 business plan presented Friday at its annual general meeting of shareholders, the Vietnamese private lender aims to raise its total assets by 5% year-on-year to VND170 trillion ($6.81 billion). It estimates total capital mobilized from customers at VND113.35 trillion, up 13%.

It targets a 13% rise in outstanding credit to VND116.27 trillion and to keep its bad debt ratio to less than 3%.

Chairman Dao Manh Khang said the bank was looking to go public within the next five years, with a valuation goal of $3 billion by 2028. He emphasized the need for strategic steps to achieve these goals, including merger and acquisition (M&A) activities and attracting foreign capital.

Not providing a direct response to questions about dividend payment plans and the augmentation of charter capital, Khang requested shareholders’ understanding of the bank’s situation and plans.

In 2023, ABBank earned pre-tax profits of VND513 billion ($20.5 million), down 69.6% year-on-year, achieving only 18.2% of the year plan. The outcome fell short of expectations because the plan was not practical, Khang explained.

He emphasized the bank’s commitment to undertaking a comprehensive overhaul of its procedures and products.

ABBank's total assets jumped 24.5% to VND161.97 trillion ($6.49 billion) last year, surpassing the set target by 18.4%.

Total outstanding credit climbed 15.7% to VND102.4 trillion, and capital mobilized from customers went up 25.9% to VND115.6 trillion. Its balance sheet recorded a bad debt ratio of 2.17%, and a bad debt coverage of 46.2%.