Vietnam's private lender Eximbank aims for 23.8% growth in 2025 pre-tax profit  

Eximbank, among the leading mid-sized banks in Vietnam, targets a consolidated pre-tax profit of VND5.2 trillion ($200 million), an increase of VND1 billion or 23.8% compared to 2024, marking the bank's record-high profit.

At the 2025 AGM held on Tuesday, the leadership said the bank plans total assets of VND265.5 trillion ($10.2 billion), up 10.7% year-on-year; customer deposits of VND206 trillion ($7.92 billion), up 15.5%; and outstanding loans of VND195.5 trillion, up 16.2%.

The non-performing loan (NPL) ratio is expected to decrease to 1.99%.

Shareholders elected two independent members to the board of directors for the 2025-2030 term, in line with the new requirements of the 2024 Law on Credit Institutions, ensuring the board operates independently, objectively, and transparently.

Chairman Nguyen Canh Anh said Eximbank’s board of directors believes that developing a medium- to long-term strategy is essential; however, it cannot be done solely by the bank or entirely rely on external consultants.

Currently, Eximbank is conducting a self-assessment of its strengths, weaknesses, opportunities, and challenges, while also collaborating with multiple consulting firms to finalize implementation plans as soon as possible.

The goal is to build a bank with a strong identity: transparent, safe, efficient, customer-oriented, delivering value to shareholders, he noted.

According to the chairman, in 2025, Eximbank, listed on the Ho Chi Minh Stock Exchange as EIB, will focus on three key objectives: growth, efficiency, and safety.

In terms of credit growth, the bank will pursue selective growth, targeting potential and secure customer segments by leveraging its competitive advantages.

For deposit mobilization, the focus will be on low-cost funding, promoting natural CASA (current account savings account) growth by expanding the customer base - positioning Eximbank as the primary bank for its clients. Additionally, the bank aims to increase non-interest income in its areas of strength.

Anh said that the global macroeconomic environment is highly volatile and unpredictable. Many forecasts made at the end of 2024 have already become outdated, leaving some policy analysts offside. Global macroeconomic instability is affecting domestic business conditions, particularly in the banking and finance sector, which is highly sensitive to economic changes.

For Eximbank, these uncertainties have led to rising international interest rates and exchange rate volatility. Domestic economic activities related to exports, consumption, and investment are also under pressure. As Eximbank’s strength lies in lending to export clients, the bank must proceed with caution.

These challenges affect credit growth and asset quality, potentially increasing on- and off-balance sheet NPLs. With Circular 02/2023 on debt restructuring no longer in effect, banks are also facing heightened demand for long-term capital, likely intensifying competition for interest rates.

Meanwhile, customers are demanding higher-yield, value-added financial products, raising investment costs. Fintech competition is another challenge that Eximbank must address, he noted.

“Still, amid challenges lie opportunities. 2025 may be a year of growth for banks with effective risk management and genuine digital transformation capabilities,” Anh stated.

Acting CEO Nguyen Hoang Hai said that the bank’s 2025 plan targets an NPL ratio of 1.99%, a highly ambitious goal. Eximbank will focus on resolving long-standing bad debts, with some dating back 10-15 years, by centralizing debt recovery operations at its asset management company (AMC) and supporting business units in handling bad debts.

One bright spot is that Eximbank’s secured lending ratio stands at 96% of total outstanding loans, he noted.

Hai emphasized that, as a listed bank, Eximbank is committed to transparency, improved shareholder communication, and enhancing operational efficiency.

In recent years, the bank’s operations have not been fully optimized, with a cost-to-income ratio (CIR) higher than the market average. The bank aims to streamline operations and maximize returns for shareholders.

Regarding green credit, Hai said Eximbank’s green finance portfolio remains limited, having only introduced ESG (environmental, social, and governance) concepts two years ago.

The bank is now establishing an ESG framework and expanding partnerships in this area. To align with global trends and government commitments, Eximbank sees itself as a contributor to the national green agenda. The bank has set an initial target of raising the share of green credit to 5-7% of its total portfolio, though the specific roadmap will depend on market conditions.

The CEO added that Eximbank is entering a new growth phase and has attracted significant interest from foreign partners. The bank has already engaged in preliminary discussions with several large international institutions interested in becoming major, near-major or strategic shareholders.

Regarding no plans for 2025 dividends, chairman Anh explained to shareholders that 2025 will be a year marked by many uncertainties. Furthermore, the bank is laying the groundwork for enhancing risk management capacity and meeting Basel III standards. As a result, the board of directors has decided not to propose a dividend payout for 2025.

This decision should not be seen negatively. Instead, it reflects Eximbank’s commitment to building a solid financial foundation, ready to seize future opportunities. This strategy aims to support safe, effective growth, enhance stock value, and increase market capitalization, he said.

In the stock market, EIB closed Tuesday at VND18,950 ($0.73) per share.