ABBank's acting CEO, Pham Duy Hieu, reported a downturn in pre-tax profits for 2023 due to the write-off of unredeemed bond investment interest and expected interest on loans turned non-performing, leading to an increased allocation for credit risk provisioning.

"The decline in pre-tax profits for 2023 was affected by the write-off of unredeemed bond interests and the provisioning for increased credit risk," Hieu said at the bank's AGM on April 5.

Chairman of the bank, Dao Manh Khang said, "The board acknowledges its responsibility to shareholders for not achieving the pre-tax profit targets set out in the General Meeting of Shareholders' resolution, partly due to forecasting and planning that did not fully align with reality."

A silver lining amidst these challenges was the 20.4 per cent revenue from service fees and guarantees, marking a 12.3 per cent increase from 2022. Additionally, the bank's capital adequacy ratio stood at 11.07 per cent, surpassing the minimum requirement of 8 per cent set by the State Bank of Vietnam, indicating a robust capital buffer.

In a strategic move to pivot towards future growth, ABBANK has partnered with the prestigious consulting firm McKinsey to design and implement a five-year development roadmap for 2024-2028.

"This collaboration aims to propel ABBank into a leading position among banks with high service quality, operational safety, and growth," Khang shared, expressing optimism about the bank's resurgence and future performance.

Furthermore, in a move poised to elevate ABB's market capitalisation to $3 billion, Khang also highlighted the bank's aspirations for listing on the HSX to improve capital market funding.

"Over numerous sessions, we have expressed our desire to list ABB shares on the HSX to better mobilise market capital. Listing will also enhance transparency in information management," Khang stated.

He emphasised the importance of transparent governance, a requirement by major ABBank shareholders like the International Finance Corporation and Maybank, and fully supports the listing initiative.

"The listing is anticipated to increase share value and provide peace of mind for investors. However, the current year's conditions are not favourable for listing. Our five-year roadmap includes reaching a $3 billion market cap through organic growth, as well as potential boosts from mergers and acquisitions, new stakeholders, or listing, with McKinsey aiding ABBank to navigate this journey," Khang added.

Admitting that 2023 was a challenging year with a significant decline in return on equity, Khang acknowledged the bank's low competitive edge, saying,"We recognised the need for a comprehensive change. The decisions by the board are not something every bank dares to face."

"We are committed to a long-term goal that necessitates a complete overhaul," he added.