ABBANK improves credit quality, increases reserves and strengthens capital safety foundation

According to the latest update from ABBANK, by November 30, 2025, the bank's accumulated pre-tax profit reached VND3,400 billion, nearly doubling the annual plan. ABBANK's customer mobilization also reached VND155,000 billion, completing 135% of the annual plan, ensuring input sources for credit growth at the end of the year. Outstanding credit reached more than VND127,000 billion, equivalent to nearly 100% of the annual plan. This is an important basis for the market to expect ABBANK to exceed the annual plan and enter a new acceleration cycle from 2026.

ABBANK is controlling the quality of its loan portfolio well.

These figures show that operating efficiency is improving not only quarterly but is forming a sustainable upward trend alongside cost optimization efforts that ABBANK is implementing in the right direction and in an increasingly effective manner.

Previously, ABBANK's consolidated financial report for the third quarter of 2025 recorded pre-tax profit of more than VND 646 billion in the quarter, bringing the cumulative 9-month figure to about VND 2,319 billion, an increase of 8 times over the same period.

According to the Financial Report for the third quarter, as of September 30, 2025, the Bank's total operating income reached VND 5,274 billion; the cost-to-income ratio (CIR) decreased sharply to about 33%, showing that the bank has increased income while effectively controlling costs. In addition, the return on equity (ROE) index reached 16.5%, approaching the level of the current leading commercial banks. The scale of operations also increased significantly. By the end of the third quarter, customer mobilization increased by about 34% compared to the same period in 2024; total assets reached VND 204,576 billion (up approximately 25% over the same period), outstanding credit increased by about 14%.

Analyzing ABBANK's financial report in depth, KIS Securities experts highly appreciated the improved credit quality, especially in the context of the banking market facing many challenges regarding asset risks.

Specifically, ABBANK's financial report shows that short-term debt accounts for the largest proportion with VND 62,276 billion (57.8%), followed by long-term debt of VND 24,590 billion (22.8%) and medium-term debt of VND 20,705 billion (20.4%). This structure shows that ABBANK prioritizes flexible capital sources and focuses on serving short-term loan needs in the retail sector and small and medium-sized enterprises.

The bad debt ratio on the financial report is 1.7%, down from 2.53% at the end of 2024. The sharp reduction in the bad debt ratio in the context of credit growth is a positive signal showing that ABBANK is controlling the quality of its loan portfolio well.

Credit risk provisions as of the end of the third quarter of 2025 reached VND 1,232 billion, an increase over the same period. The increase in provisions demonstrates ABBANK's commitment to strengthening its resilience to potentially risky loans.

The reduction in bad debt ratio along with increased provisioning is a testament to the effective credit risk management strategy. This creates a solid foundation for ABBANK to continue to grow credit sustainably in the coming quarters. Analysts' perspective emphasizes this aspect because credit quality is the core factor reflecting the level of safety and sustainability in banking operations.

Boost from capital increase

In 2026, the National Assembly approved the target of double-digit GDP growth, with many solutions to promote the development of the private economy , the main customer area of ABBANK. This shows that the Bank's credit growth is still very large, while mobilized capital and customer deposits have increased sharply, creating a solid foundation for the Bank to expand lending, develop products and services, and improve asset quality.

The move that investors have noticed at ABBANK is that the Bank has been approved to increase its charter capital by an additional VND3,622 billion, expected to bring its charter capital to nearly VND14,000 billion. The capital increase is considered a "strategic stepping stone", helping ABBANK expand its credit balance and improve its competitiveness, especially in the context of the capital demand of the business and individual markets continuing to increase.

The new capital source supports the bank to expand credit space, invest in technology and develop products and services. Increased charter capital combined with high profits gives ABBANK more room to expand credit while still ensuring capital safety. After increasing capital, ABBANK has a "larger, more stable" position, which is favorable for implementing strategic goals such as expanding the network, digitizing operations, and improving customer experience services.

Another factor that the market has positively evaluated is that ABBANK has just announced the restructuring of its senior leadership, in which Mr. Vu Van Tien returns to the position of Chairman of the Board of Directors and directly leads the bank in strategic activities. This is considered a "timely move", helping to strengthen governance capacity and improve transparency - a key factor affecting the bank's valuation and growth expectations of ABB shares.

Changes in capital structure, human resources and operational efficiency are positioning ABBANK for a new phase of development, with positive prospects for both the bank and ABB shares.

Comment (0)