Bac A Bank reports pre-tax profit of over VND1,000 billion, with low non-performing loan ratio
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- Business
- 21:37 24/04/2024
DNHN - Bac A Bank has announced positive business results for 2023, with consolidated revenue continuing to grow, promising non-interest income, and a non-performing loan (NPL) ratio remaining at the lowest level in the industry.

Bac A Commercial Joint Stock Bank (Bac A Bank - Code: BAB) has just announced its financial report for 2023 with promising business results despite the challenging economic context and the impact of the global market.
As of the end of 2023, Bac A Bank’s total assets reached VND152,243 billion, an increase of 18.2% compared to the beginning of the year and exceeding the plan set out at the 2023 Annual General Meeting of Shareholders.
In addition, in the context of interest rates being adjusted downwards throughout the banking system, Bac A Bank’s total customer deposits still reached VND118,477 billion, an increase of 22.3% compared to the end of the previous year thanks to a good customer care policy and many exclusive incentives for each savings product.
The growth in mobilised deposits provides a stable source of capital for the bank and demonstrates the increasing trust of customers in Bac A Bank.
During the year, Bac A Bank’s credit growth always complied with the limits set by the State Bank of Vietnam (SBV). As of the end of 2023, loans to customers increased by 6.1% compared to the previous year, lower than the overall growth rate of the industry due to the relatively slow recovery in borrowing demand from economic sectors.
The bank has also always accompanied and shared difficulties with customers through many preferential interest rate programmes to support individuals and businesses in overcoming difficulties and restructuring debts for customers following Circular 02, etc.
In the fourth quarter, the bank’s business activities showed clear signs of recovery, with pre-tax profit increasing by 57% compared to the same period last year, reaching over VND510 billion. The bank’s non-interest income emerged as a bright spot, becoming the main driver of profit growth.
In addition, thanks to effective management, the bank’s operating expenses in the last quarter of the year decreased by 18% compared to the same period to over VND526 billion, supporting the increase in profit.
For the whole of 2023, the bank’s total operating income reached over VND3,000 billion, an increase of 6.2% compared to the previous year, while total expenses were at VND1,800 billion, an increase of 6.8%. Of which, the bank’s net interest income was still the main source of revenue, bringing in VND2,389 billion.
The bank’s non-interest income grew positively, contributing significantly to the increase in profit. The service segment recorded a growth of over 15% compared to the previous year, bringing in VND105 billion in net profit. Other business segments such as foreign exchange, investment securities trading, and income from capital contributions and share purchases all had high growth rates.
This growth was achieved through the bank’s great efforts during the year, thanks to increased investment in digital technology transformation, cashless payment activities, a series of credit card promotions, and improvements to electronic banking products and services to ensure security, convenience, and customer satisfaction.
As a result, Bac A Bank’s pre-tax profit reached over VND1,060 billion, not as high as in the fourth quarter but still maintained at a level close to the previous year. This result is consistent with the context in which businesses are striving to recover, and the economy’s credit absorption capacity is low.
In terms of operational safety indicators, Bac A Bank’s liquidity remained stable, and the NPL ratio, although it increased to 0.92%, was still among the lowest in the industry thanks to good risk management capabilities. The bank’s operational safety indicators continued to ensure the limits set by the SBV.
In addition, to improve asset quality and create a solid provision buffer, the bank has proactively set aside over VND152 billion in provisions, an increase of nearly 36% compared to 2022. The bank’s NPL coverage ratio reached 131% at the end of the year, which is high by industry standards (the industry average is 93%). The NPL coverage ratio reflects the bank’s resilience to fluctuations related to NPLs. Therefore, the higher this ratio, the more proactive the bank is in setting aside provisions and managing NPLs to ensure smooth banking operations.
At the end of 2023, although some targets did not reach 100% of the plan set at the beginning of the year, the bank continued to maintain stable business operations, improve risk management and financial capacity, etc., in the right direction and effectively.
HT
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