On the basis of the business plan formulated in the beginning of the year, the Board of Management has developed a business orientation plan for the rest of the year, with adjustments in line with the operation situation and business environment forecasts.

Charter capital plans were submitted and approved by shareholders

New targets for the year include an on-year increase of 7.9 per cent for total assets, 21.2 per cent for charter capital, 5 per cent for customer deposits, and 9.6 per cent for loans. In addition, there will also a rise of 59 per cent in revenue from services and guarantees. Pre-tax profit will reach VND1.1 trillion ($47.82 million) and the number of transaction points will increase by 12 points.

At the AGM, the board submitted to shareholders and approved the plan to increase charter capital to nearly VND9.9 trillion ($430.43 million) under two forms: issuing ordinary shares to pay dividends to existing shareholders, and offering common shares to existing shareholders.

It also agreed on the share dividend rate in 2022 at 7.5 per cent, with money coming from the remaining after-tax profit of 2022, after making provisions for funds.

Last year, given difficulties in the domestic financial market and interest rate fluctuations in the last months of the year, BAC A BANK proactively and flexibly operated its activities which obeyed all targets, capital adequacy ratio, and operational safety according to regulations of the State Bank of Vietnam.

By the end of 2022, the banks’ total assets reached nearly VND130 trillion ($5.65 billion), with charter capital standing at over VND8.13 trillion ($353.47 million), capital mobilisation increasing 6.1 per cent on-year.

Over the past year, BAC A BANK’s credit growth has followed the regulations on credit limits, and the lender’s credit quality has been increasingly improved. Bad debt has continued to be well controlled, with the ratio at 0.55 per cent, down by 0.22 per cent as compared to 2021. Its profit before tax reached VND1.03 trillion ($44.87 million), completing 103.2 per cent of the business plan assigned.

Investment consulting activities have also continued to be promoted for projects related to high-tech agriculture, healthcare, education, and tourism.

In addition, BAC A BANK has completed the first phase of its banking kiosk project, marking an important development milestone in the digital transformation process. The kiosk bank transaction counter system can perform automatic transactions with customers through an automatic system, which is integrated with optimal customer identification and information security technologies.

After the first phase of official operation, the system has operated in a stable manner, receiving positive feedback from customers. This has prompted the banks to continue implementing the second phase of the kiosk banking project nationwide.

With a strategic vision to become a modern and versatile bank, last year the lender built up a digital bank model branded Alpha Bank, and started implementing the first phases of the project, which is expected to soon be completed and put into operation in the following years.

By applying risk management standards in accordance with domestic regulations and international practices, BAC A BANK last year completed the entire 3-pillar risk management project in accordance with using Basel II standards, completing the internal assessment of capital adequacy, and accepting a series of processes and reports.

The bank also strengthened and improved internal inspection and auditing through remote operation monitoring combined with direct inspection in order to ensure timely detection and handling of violations and errors, if any arise during business unit operations.