KienlongBank's financial picture looks brighter in the last quarter of the year.
Kienlong Commercial Joint Stock Bank (KienlongBank, UpCoM: KLB) has just announced its Q4/2023 financial report. The results show positive signs in the overall financial picture of the Bank. With the flexible and cautious direction and management of the Government and the State Bank of Vietnam (SBV), KienlongBank's leadership has implemented many astute solutions and proactively adapted to market difficulties. As of December 31, 2023, KienlongBank's total assets reached VND 86,972 billion; customer deposits reached VND 56,897 billion, and outstanding loans reached VND 52,580 billion, exceeding the annual plan.
In its financial results report, KienlongBank recorded a net profit of VND 542.6 billion; profit from service activities reached VND 144.6 billion, while net profit from foreign exchange trading and securities investment activities brought in VND 22.3 billion and VND 31.8 billion respectively. KienlongBank's pre-tax profit for the quarter reached VND 79.5 billion, bringing the total profit for 2023 to VND 719 billion, achieving 102% of the plan approved by the General Shareholders' Meeting in April, resulting in a total after- tax profit of VND 574 billion.
In its digitalization strategy, the Bank has allocated a significant portion of its resources to technology and digital transformation to increase productivity and improve customer service efficiency. This is also one of the major expenses in the Bank's total operating costs during the quarter. However, to achieve the dual goals of both laying a solid foundation for breakthroughs and maintaining business efficiency, KienlongBank has proactively optimized operating costs, thereby reducing overall expenses and ensuring that profits meet targets.
In its first year under the leadership of the new Board of Directors and Supervisory Board (2023-2027), to achieve these positive business results, KienlongBank focused its lending on production and business sectors, priority areas, and growth drivers in line with government policies; prioritized lending according to the Green Classification List, lending to meet people's housing needs; and strictly controlled lending to sectors with potential risks. Simultaneously, through the restructuring of its loan portfolio, the Bank also facilitated access to credit for individual customers, small and medium-sized enterprises, cooperatives, high-tech production models, and value chain participants, enabling them to develop their businesses.
In early 2024, KienlongBank launched a 0% interest rate support program to stimulate consumer spending and boost business.
2023 also marked KienlongBank's concerted efforts to support people and businesses, with eight consecutive interest rate reductions on loans totaling over 3%, exceeding the targets set by the Government and the State Bank of Vietnam (1.5-2%). Not stopping there, at the beginning of 2024, understanding the spending and business needs of customers, KienlongBank launched a 0% interest rate loan program, hoping to provide strong support and increase access to capital for customers during this crucial time.
Notably, thanks to strict risk management measures and a cautious risk appetite, along with a reduction in lending to risky sectors, KienlongBank's non-performing loan (NPL) ratio has remained below 1.5%, among the lowest in the market, ensuring compliance with State Bank of Vietnam regulations. Furthermore, in Q4 2023, KienlongBank proactively utilized resources by setting aside 229 billion VND in provisions to enhance its resources, increase its buffer, cover bad debts, and strive to keep the NPL ratio below the regulated level. This also reduces the pressure of provisions for future years and mitigates the impact of future bad debts.
Accelerating digital transformation, aiming to build a comprehensive ecosystem by 2025.
Anticipating the recovery of the Vietnamese economy in particular in the coming year, and to achieve the key objectives assigned in the plan, KienlongBank has closely followed the directives and orientations from the Government and the State Bank of Vietnam, laying the groundwork for implementing key solutions such as focusing on improving management and operational capacity, emphasizing governance according to international practices; strengthening supervision and compliance with regulations and standards in banking operations; resolutely implementing restructuring solutions and handling bad debts; and promoting digital transformation.
Besides making market-sensitive business decisions, KienlongBank also prioritizes sustainable development and selective growth as a foundation to achieve its goal of becoming a leading bank in the retail segment, supporting consumer needs and small and medium-sized enterprises (SMEs). By identifying digital transformation as a core task that is thoroughly and decisively directed, KienlongBank has been implementing many integrated digital products on the platform of individual digital products to develop and apply AI technology to meet and support customer needs to the fullest extent, such as the MyShop - Paybox solution suite, KienlongBank Pay payment solution, etc.
Simultaneously, KienlongBank is also strengthening its cooperation network with many banking agent partners and e-commerce platforms to further enhance customer experience and establish a diverse digital ecosystem that meets the needs of various customer groups. KienlongBank expects to create a new standard for a comprehensive digital banking model, establishing a new position for banking services in the eyes of customers.
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