ACB bank posts first profit decline since 2013 amid higher provisions

Asia Commercial Bank (ACB) reported lower after-tax profit for 2025, its first year of negative profit growth since 2013, as the Vietnamese private lender sharply increased credit risk provisions amid a volatile market environment.

Net interest income decreased by 3% to VND26,906 billion ($1.03 billion) in the year. Profit after tax decreased by 7% to VND15,625 billion ($599.47 million). This was the first time since 2013 that ACB had recorded negative profit growth.

In Q4 alone, net interest income edged up to over VND7,093 billion ($272.13 million), while fee income rose to VND894 billion ($34.3 million) from VND869 billion a year earlier.

However, the sudden increase in credit risk provisions from VND148 billion to VND1,957 billion ($75.08 million) resulted in pre-tax profit and profit after tax both dropping by 39% to VND3,467 billion and VND2,785 billion ($106.85 million), respectively, according to the bank’s consolidated Q4 financial statements.

ACB said it prioritized asset quality and long-term resilience over headline growth as uncertainties persisted.

“In a volatile environment, what matters for ACB is not just growth, but the quality of growth and long-term adaptability,” CEO Tu Tien Phat said. “We remain committed to strengthening our financial foundation and risk governance to be ready for the next growth cycles.”

He said ACB proactively raised provisions in 2025 to improve asset quality and balance sheet safety, while also booking costs to prepare for strategic initiatives.

By the end of 2025, outstanding loans reached VND669 trillion ($25.67 billion), up 17% from the start of the year, excluding margin lending of VND17.34 trillion at its securities arm.

Corporate lending remained the main growth driver, rising 25.5% and focusing on key sectors such as trade and processing-manufacturing.

ACB expanded lending to large enterprises with extensive ecosystems and capitalized on strong FDI inflows, with loans to large corporates up 62% and FDI-related lending surging 170%. Mortgage lending also showed early signs of recovery.

The bank’s non-performing loan ratio was contained at 0.76% at year-end, the lowest since 2023. Substandard and doubtful loans declined, while loss-making loans fell by over VND1.61 trillion ($61.85 million).

As a result, the loan loss coverage ratio improved sharply to about 114%, from around 78% at the end of 2024, enhancing resilience against macroeconomic shocks.

ACB maintained prudent liquidity and capital governance. The ratio of short-term funding used for medium- and long-term lending stood at 24.4%, well below regulatory limits, while the loan-to-deposit ratio was 79%.

Following the transition to Circular 14 in December 2025, the bank’s consolidated capital adequacy ratio is expected to exceed 12%, well above the minimum requirement.

On the funding side, total mobilized capital, including bond issuance, rose 12.4% to VND718 trillion ($27.55 million).

Corporate CASA balances improved notably, supported by industry-specific financial solutions across textiles, plastics, FDI-related businesses, and fishery-agriculture.

In the retail segment, ACB continued to expand its product ecosystem with offerings such as the Lotusmiles Pay card and flexible certificates of deposit, reinforcing its customer-centric strategy.