Asia Commercial Bank – APEA – Asia Pacific Enterprise Awards

CORPORATE EXCELLENCE

Asia Commercial Bank

Introduction
ACB was established in 1993 and is one of the largest and fastest growing joint-stock banks in Vietnam. ACB’s growth over the past 26 years is grounded on five core values: Integrity, Prudence, Innovation, Efficiency and Balance.

The core business of ACB and its subsidiaries is to mobilise funds in the form of term deposits and demand deposits; to receive investment and development funds from domestic credit institutions; to grant loans; to discount commercial papers and bonds; to invest in joint-ventures; trade in foreign currencies and gold and to mobilise overseas funds and other services with overseas.

Company Culture and Company Activities
Currently, ACB has over 10,000 employees working at 358 branches and sub-branches throughout 47 provinces and cities nationwide. ACB targets strong financial results, risk management and business ethics, and aims to be a pioneer in delivering products and services that meet the needs of customers in all age groups. ACB consistently focuses on investing in the development of its human resources as key contributors to the bank’s position in the banking and financial sector.

Sharing culture and solidarity: ACB has built a strong company culture, a sense of solidarity, and mutual support and ACBers pride themselves as members of a greater family.

Talent ecosystem: ACB treats employees and potential employees as career partners. Every employee is able to identify one’s role, career development path and contributions to the Bank. ACB’s professional and training channels and partner relationships are focused on expanding, improving and diversifying the talent ecosystem. Many programmes have been well received by career partners such as The Next Banker, ACB Experience, ACB WIN and ACB Tech Career Day. ACB wants to be a company that people wants to work for and a second home for every ACBer. ACB envisions itself as a company where employees are happy with their work, with a team who actively takes responsibility for their part in the company’s growth and clearly sees their own future path.

Impacts and Achievements
By the end of 2018, ACB achieved PBT of VND6,389 bil. (+141%yoy, 112% FY budget). Net interest income increased by 23% to VND10,363 bil. NIM grew by 11bps compared to 2017.

Balance sheet growth: Total assets grew strongly from 284trn in 2017 up to 329trn. Along with the growth in size, ACB has always paid attention to improve asset quality. The balance sheet of the bank continues to be restructured towards higher quality and liquidity. Credit growth was 32trn (16% from 2017), customer deposits increased by 29trn (12%).

Capital adequacy ratio: In terms of capital adequacy ratio, ACB is one of the ten banks chosen to follow Basel II in 2019. As a result, ACB has actively improved the CAR by issuing over 3trn Tier 2 bonds, proactively monitored and managed customer lending portfolio in order to improve RWAs. By the end of 2018, the total CAR and Tier 1 ratio was 12.81% and 10.56%, respectively.

Non-performing loans: The asset structure was a result of the higher proportion of earning assets to total assets, which accounted for up to 95% by the end of 2018. The proportion of group 1 loans over total assets was 70% while that of NPLs and non-performing assets was less than 5%. At the end of 2018, the total NPL volume was 1,675bn, equivalent to 0.73% of total outstanding loans.

Net interest margin: NIM improved as the banking environment improved. Taking advantage of the trend in the market, ACB restructured its lending and deposit portfolio to tap the most profitable customer segments. As a result, in 2018, NIM achieved 3.4%, an increase of 11bps compared to 2017.

One of ACB’s annual developmental targets is to fulfil its responsibility towards the community and contribute to the society. In 2018, ACB allocated over VND9 billion to finance activities on education, charity and environment protection under the programme “I love the journey of my life.” These programmes include scholarships (cash and school appliances) to pupils and undergraduates and the building of schools and sponsoring career days in Ho Chi Minh City, Ha Noi, Ben Tre, Dong Nai, and six provinces in Central Vietnam.

ACB also contributed to charity activities to improve the living standards of the needy such as construction of houses for the poor in Vinh Long province, building a bridge in Dong Thap province; financial assistance for the poor and children with disabilities in Ho Chi Minh City and other provinces like Tra Vinh, Nghe An, Bac Giang, Ha Tinh, Bac Lieu. In recognition of these contributions, the International Finance Magazine awarded ACB the “Best Corporate Socially Responsible Commercial Bank Vietnam 2018.”

In the near future, ACB wants to continue to strengthen its sustainable development initiatives and focus on investing in technology, human resource and brand innovation. These programmes will include expanding the customer base on strategic segments and tailoring products and services to meet their demands. The Bank will also continue to upgrade the quality of the current products and services, while developing new ones and promoting investment in fintech to improve customer service, digitize the process to increase customer service capacity and productivity.

CORPORATE EXCELLENCE

Asia Commercial Bank

Introduction
ACB was established in 1993 and is one of the largest and fastest growing joint-stock banks in Vietnam. ACB’s growth over the past 26 years is grounded on five core values: Integrity, Prudence, Innovation, Efficiency and Balance.

The core business of ACB and its subsidiaries is to mobilise funds in the form of term deposits and demand deposits; to receive investment and development funds from domestic credit institutions; to grant loans; to discount commercial papers and bonds; to invest in joint-ventures; trade in foreign currencies and gold and to mobilise overseas funds and other services with overseas.

Company Culture and Company Activities
Currently, ACB has over 10,000 employees working at 358 branches and sub-branches throughout 47 provinces and cities nationwide. ACB targets strong financial results, risk management and business ethics, and aims to be a pioneer in delivering products and services that meet the needs of customers in all age groups. ACB consistently focuses on investing in the development of its human resources as key contributors to the bank’s position in the banking and financial sector.

Sharing culture and solidarity: ACB has built a strong company culture, a sense of solidarity, and mutual support and ACBers pride themselves as members of a greater family.

Talent ecosystem: ACB treats employees and potential employees as career partners. Every employee is able to identify one’s role, career development path and contributions to the Bank. ACB’s professional and training channels and partner relationships are focused on expanding, improving and diversifying the talent ecosystem. Many programmes have been well received by career partners such as The Next Banker, ACB Experience, ACB WIN and ACB Tech Career Day. ACB wants to be a company that people wants to work for and a second home for every ACBer. ACB envisions itself as a company where employees are happy with their work, with a team who actively takes responsibility for their part in the company’s growth and clearly sees their own future path.

Impacts and Achievements
By the end of 2018, ACB achieved PBT of VND6,389 bil. (+141%yoy, 112% FY budget). Net interest income increased by 23% to VND10,363 bil. NIM grew by 11bps compared to 2017.

Balance sheet growth: Total assets grew strongly from 284trn in 2017 up to 329trn. Along with the growth in size, ACB has always paid attention to improve asset quality. The balance sheet of the bank continues to be restructured towards higher quality and liquidity. Credit growth was 32trn (16% from 2017), customer deposits increased by 29trn (12%).

Capital adequacy ratio: In terms of capital adequacy ratio, ACB is one of the ten banks chosen to follow Basel II in 2019. As a result, ACB has actively improved the CAR by issuing over 3trn Tier 2 bonds, proactively monitored and managed customer lending portfolio in order to improve RWAs. By the end of 2018, the total CAR and Tier 1 ratio was 12.81% and 10.56%, respectively.

Non-performing loans: The asset structure was a result of the higher proportion of earning assets to total assets, which accounted for up to 95% by the end of 2018. The proportion of group 1 loans over total assets was 70% while that of NPLs and non-performing assets was less than 5%. At the end of 2018, the total NPL volume was 1,675bn, equivalent to 0.73% of total outstanding loans.

Net interest margin: NIM improved as the banking environment improved. Taking advantage of the trend in the market, ACB restructured its lending and deposit portfolio to tap the most profitable customer segments. As a result, in 2018, NIM achieved 3.4%, an increase of 11bps compared to 2017.

One of ACB’s annual developmental targets is to fulfil its responsibility towards the community and contribute to the society. In 2018, ACB allocated over VND9 billion to finance activities on education, charity and environment protection under the programme “I love the journey of my life.” These programmes include scholarships (cash and school appliances) to pupils and undergraduates and the building of schools and sponsoring career days in Ho Chi Minh City, Ha Noi, Ben Tre, Dong Nai, and six provinces in Central Vietnam.

ACB also contributed to charity activities to improve the living standards of the needy such as construction of houses for the poor in Vinh Long province, building a bridge in Dong Thap province; financial assistance for the poor and children with disabilities in Ho Chi Minh City and other provinces like Tra Vinh, Nghe An, Bac Giang, Ha Tinh, Bac Lieu. In recognition of these contributions, the International Finance Magazine awarded ACB the “Best Corporate Socially Responsible Commercial Bank Vietnam 2018.”

In the near future, ACB wants to continue to strengthen its sustainable development initiatives and focus on investing in technology, human resource and brand innovation. These programmes will include expanding the customer base on strategic segments and tailoring products and services to meet their demands. The Bank will also continue to upgrade the quality of the current products and services, while developing new ones and promoting investment in fintech to improve customer service, digitize the process to increase customer service capacity and productivity.