Viet Dragon Securities - ACB - Sustaining growth focused on quality and efficiency

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Viet Dragon Securities

Chinh Nguyen

ACB - Sustaining growth focused on quality and efficiency

· ACB announces its Q4 operational results with consolidated total operating income (TOI) reaching VND 8.4 trillion (USD 381.82 million) (+5.7% YoY and -0.5% QoQ) and profit before tax (PBT) reaching VND 5 trillion (USD 227.27 million) (+39.7% YoY and +0.2% QoQ), attributed to sustained growth in income and effective cost control.

· For the entire year of 2023, the cumulative total operating income and profit before tax are VND 32.7 trillion (USD 1.485 billion) (+14% YoY) and VND 20 trillion (USD 909.09 million) (+17% YoY), successfully achieving the bank's 100% profit plan for 2023. Key drivers for income and profit growth include (1) a 6% YoY increase in net interest income, (2) a 48% YoY increase in non-interest income, and (3) a 6% YoY reduction in operating expenses.

· The non-performing loan ratio for customer loans is 1.22%, up 1 basis point from the previous quarter, partly influenced by the CIC. Regarding the internal portfolio, the non-performing loans for personal customers stand at 1.1%, and for business customers, it is 1.11%. ACB's structured debt as of the end of 2023 is VND 2.2 trillion (USD 100 million), compared to VND 1.8 trillion (USD 81.82 million) in September.

· Looking ahead to 2024, we anticipate the bank's total income to grow at a faster rate than in 2023, driven by net interest income. Additionally, we expect the bank to effectively manage internal non-performing loans, while the impact of CIC gradually diminishes, maintaining profit growth in the double digits as in previous years. The current target price is VND 29,000 per share, and we are reviewing adjustments to better reflect recent positives.

02/02/2024 7 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Chinh Nguyen

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ACB - Sustaining growth focused on quality and efficiency

AWAITING THE BREAKOUT

Vietnam chilled-fresh meat market – Significant long-term potential but difficult to realize in

The decline has not come to a halt

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