Genenal information on An Binh Commercial Joint Stock Bank

Background information An Binh Commercial Joint Stock Bank

An Binh Commercial Joint Stock Bank (ABBANK) was established under the license No.535/GP-UB issued by People’s Committee of Ho Chi Minh City dated Ma 13, 1993. The original name of ABBANK was An Binh Rural Commercial Joint Stock Bank. Since the ank was upgraded to the urban scale (period 2002 – 2004), ABBANK has made an impressive development and rapid growth. The period of 2005 – 2014 was when ABBANK had the most poweful

breakthroughs with the changes in both quality and quantity. Over 20 years of experience inoperating.in Vietnam financial and banking market, ABBANK is among the banks which have enjoyed a strong and sustainable growth in recent years and have reached nearly VND 4.800 billion of charter capital.

By implementing sustainable business strategy, ABBANK’s financial ratios have always grown stably and security standards have still been remained. Besides, thanks to major domestic and foreign shareholders such as Vietnam Electricity (EVN), Hanoi General Export Import Corporation (Geleximcoj.. Maybank – the Malaysian largest bank, International Financial Organization (IFC), ABBANK has received strong financial resources and structured in compliance with best international practices

With a network of 146 transaction offices, the bank proudly serves approximately 506,200 clients and more than 20,000 corporate clients in 29 provinces nationwide.

For corporate clients, ABBANK provides financial and banking service packages which meet diverse needs of clients, such as funding (import/export, investment project, commercial fmancing, etc.); lending (supplementing capital by installments, goods pledging, etc.), guarantee, international payment, and deposits (accounts payable, non-termed deposits, etc.). In 2012, ABBANK especially targets small and medium-sized enterprises (SMEs) as its strategic clients. It provides optimal financial service packages and opened the SME Centre to serve this segment with consultancies and experiences received from its foreign strategic shareholder, IFC.

As for individual clients, ABBANK confidently provides them with safe and efficient products, flexible consumption loans (housing loans, car loans, loans for overseas studies, loans for production and investment, etc.) and other various services (domestic and international money transfers, electricity bill settling, etc.). Especially, value-added, modem, trendy and useful banking services like Online Banking, SMS Banking, Mobile Banking, smart services associated with ABBANK cards have been given great emphasis.

ABBANK aims to become a leading joint stock commercial bank in Vietnam, focusing on retail banking with its unique selling proposition being a friendly retail banking service provider. The friendliness, professionalism and commitment of the staff shall be the criteria and guideline for the bank’s every single activity. With its business motto being “Giving solutions – Getting smiles “, ABBANK wants to become a trustworthy service supplier, providing clients with effective financial solutions and bring satisfaction to every single clients.

After 22 years of development, ABBANK has a firm belief in its potential as well as in the development of Vietnam financial market. Operating performance and quality of service at ABBANK have been confirmed by long-standing beliefs and support of shareholders, partners and customers as well as reputable awards such as: Golden Globe Award, Vietnam Top Trade Service Award, The Most Popular Vietnamese Brand Award, Vietnam Strong Brand Name Award, Excellent International Payment Banker Award, etc.

2. Vision, Mission and Strategic Goals till 2018

March 2014, ABBANK BOD approved the bank’s Vision, Mission and Strategic

Goals till 20t”8(5 year goals) with the following details: .

• Vision: To be a leading joint-stock bank in Vietnam, focusing on retail banking.
• Mission: Providing friendly, effective and efficient financial solutions to customers.
• Strategic Goals (5 year goals till 2018):

(i) Top 10 in terins of Total Assets and ROE not lower than banking industry average.

(ii) To achieve at least 60% outstanding loans from retail banking (Individual consumer and SMEs).

(iii) To achieve at least 30% of our total income from services.

(iv) Build a friendly and professional work culture and environment, capable of attracting employees (Staff turnover rate among the top 7 joint-stock banks).

(v) Build professional and effective corporate governance and risk management

3. Business performance of ABBANK

Amidst such context of local economy, ABBANK’s business activities in 2014 still showed some significant achievements. As at the end of Dec 2014, total assets of ABBANK reached Vnd 67,198 billion, that equivalent to 102% of its target and increased by 16% as compared to 2013. Both lending and mobilization activities exceeded the target, and credit quality has been well improved. Operation expenses in 2014 were quite well controlled as only exceeded 0.5% of the set target. Total interest income in 2014 hit Vnd 1,381 billion, up 5% against 2013 and was 85% of the plan. Net service fees income hit Vnd 116.1 billion, up 21% and completed 90% of the year’s plan. Total profit before tax was Vnd 133.6 billion, not yet met the target due to 02 crucial reasons: (i) higher provisioning thari set plan due to bad debts in previous years, (ii) decreased interest rate platform in 2014 as instructed by the SBV led to low interest income

Genenal information on An Binh Commercial Joint Stock Bank