ABBank, owned by tycoon Vu Van Tien, suffered a major loss in the third quarter.

An Binh Commercial Joint Stock Bank (ABBank) has just announced its consolidated financial report for the third quarter, showing a pre-tax loss of over 343 billion VND, while it reported a profit in the same period last year.

ABBank just reported a loss in the third quarter of 2024 - Photo: ABB

ABBank increases provisions for credit risk.

According to its Q3 2024 financial report, ABBank recorded net interest income of over VND 737 billion, a 14% increase compared to the same period last year.

However, other segments of the bank's performance during the period were less favorable. Specifically, foreign exchange trading resulted in a loss of over 46 billion VND, compared to a profit of over 105 billion VND in the same period last year.

Both trading and investment securities by ABBank resulted in losses of VND 3.7 billion and VND 60.01 billion, respectively.

Most notably, ABBank's credit risk provisioning costs in the third quarter of this year reached VND 525 billion, an increase of more than 2.23 times compared to the same period last year.

Therefore, despite operating expenses remaining unchanged, ABBank's total pre-tax profit was still negative 343 billion VND. After deducting taxes, the bank reported a net loss of over 284 billion VND, compared to a profit of nearly 24 billion VND last year.

In his explanation submitted to the Securities Commission, Mr. Nguyen Duy Hieu, General Director of ABBank, stated that the main reasons were net losses from foreign exchange trading and a 123% increase in credit risk provision costs compared to the same period last year.

For the first nine months of this year, ABBank recorded net interest income of VND 2,192 billion, a decrease but not significant compared to the first three quarters of last year. Profit after tax reached VND 180 billion, a decrease of 68% compared to the same period.

As of the end of September this year, ABBank's total assets reached VND 164,194 billion, an increase of more than 1% compared to the beginning of the year.

Of that amount, outstanding customer loans reached VND 98,767 billion, an increase of less than 0.7%. This indicates that ABBank's credit growth is slowing down compared to the overall average of the entire system.

According to the latest figures from the State Bank of Vietnam, as of September 30th, credit across the entire system increased by 9%.

Notably, customer deposits decreased from over VND 100,034 billion at the beginning of the year to VND 91,089 billion at the end of September.

Regarding loan quality, as of the end of Q3 2024, ABBank's total on-balance sheet non-performing loans reached VND 3,156 billion, an increase of over 10% compared to the beginning of the year. Thus, the non-performing loan ratio on total customer loans has reached nearly 3.2%.

Who holds the capital in ABBank?

According to the shareholder list updated as of July 31, 2024, ABBank has 19 shareholders owning 1% or more of the charter capital.

Of these, Malayan Banking Berhad (Maybank) - a strategic shareholder of ABBank - holds more than 169.6 million shares, equivalent to 16.39% of the charter capital.

Next, Geleximco Group holds 132.2 million shares of ABBank, equivalent to 12.78%, along with related parties holding over 48 million shares, equivalent to 4.65%.

Glexhomes also holds 4.43% of ABBank's capital, and related parties hold 0.03%. Geleximco Group is the founding shareholder of Glexhomes.

The list of shareholders holding more than 1% of the capital does not include the name of Mr. Vu Van Tien - Vice Chairman of the Board of Directors of ABBank. However, Mr. Tien is the Chairman of Geleximco Group.

In addition, Mr. Vu Van Hau, the younger brother of Mr. Vu Van Tien, and related parties hold nearly 180 million shares, equivalent to 17.41% of ABBank's capital.

Mr. Tien served as Chairman of the Board of Directors of ABBank from 2005 to 2018.

However, according to the Law amending and supplementing a number of articles of the Law on Credit Institutions, the chairman and general director of a bank are not allowed to simultaneously hold equivalent leadership positions in other enterprises.

Currently, the chairman and legal representative of ABBank is Mr. Dao Manh Khang, the brother-in-law of Mr. Vu Van Tien. Ms. Vu Thi Huong, Mr. Khang's wife and Mr. Tien's younger sister, is serving as assistant to the chairman of the Board of Directors and assistant to the vice chairman of the Board of Directors.

Source: https://tuoitre.vn/abbank-cua-dai-gia-vu-van-tien-lo-lon-quy-3-20241101095528218.htm