Vietnam private lender ABBank sees Q1 pre-tax profit double

Hanoi-headquartered ABBank’s pre-tax profit in Q1 totaled VND400 billion ($15.46 million), more than doubling that recorded in the same period last year, according to figures released at the bank’s 2025 AGM on Friday.

The Q1 figure fulfilled more than 22.2% of the lender’s full-year target of VND1.8 trillion ($69.57 million), approved by shareholders at the meeting. The target represents a rise of 131% compared to 2024.

Its total assets are expected to reach VND200 trillion ($7.73 billion) at the end of 2025, up 13% from the start of the year. Of this, outstanding credit is projected at VND127.81 trillion ($4.94 billion), up 16%, while customer deposits and bond issuance are forecast to total VND115.46 trillion ($4.46 billion), up 5%.

The non-performing loan ratio is expected to remain below 3%.

Personnel cuts in 2025 plan

Organization streamlining and restructuring is one of the key issues in the 2025 plan of ABBank (UPCoM: ABB).

Chairman Dao Manh Khang noted that the bank’s 2024 profit, reaching only 81% of the year's target, revealed weaknesses in management and a cumbersome, overlapping and costly system, making the task of streamlining operations a critical priority.

In fact, ABBank’s restructuring and personnel reduction efforts are reflected in its audited 2024 financial statements. As of December 31, 2024, the bank employed 4,367 employees, down from 4,533 at the end of 2023.

Vice chairman Vu Van Tien briefed shareholders on his meeting with the bank’s ESG (Environmental, Social, and Governance) Sustainable Development Strategy Committee, which was established earlier this year to develop, implement and oversee the bank’s sustainable development strategy.

The committee’s first task lies with streamlining ABBank’s organizational model, which, Tien said, is outdated and conservative, resulting in low efficiency.

Some ABBank departments have cut their workforce by 30-40% to eliminate a cumbersome and inefficient structure, he said.

"In the digital age, we can no longer rely on large teams. One person can now do the work that previously required hundreds,” he continued. “We have the tools and the will to make it happen. My approach is to find the right people, rather than assigning tasks to anyone”.

The bank’s management team should conduct market research with both domestic and international customers, while learning from foreign financial institutions’ operational experience, he stressed.

Regarding operational directions, Tien said given the current difficulties in consumer demand and declining goods consumption, the bank would shift its focus toward corporate clients this year and next, rather than retail banking.

For lending activities, he emphasized that loans must be secured by collateral, particularly real estate, affirming that real estate still holds potential and remains resilient.

In addition to real estate, loans can also be secured by factories, although Tien noted that this depends on the future development of the factories.