ACB expects profits to top $460 mln

Asia Commercial Bank has set itself a profit target of VND10.6 trillion ($460.8 million) for 2021, up 10 percent from last year.

If it manages to achieve the target, it will join a select group of lenders to surpass the VND10 trillion mark comprising state-owned lenders Vietcombank, VietinBank, MBBank, Vietnam’s largest private bank Techcombank, and VPBank.

It also targets growing its assets by 10 percent and credit by 9 percent and keeping non-performing loans under 2 percent.

ACB plans to pay 25 percent dividends for 2020 and 2021 in the stocks.

Its profit target is lower than forecasts by some securities companies. Vietcombank Securities expects ACB to achieve a profit of VND11.7 trillion, while KIS Vietnam, owned by Korea Investment & Securities Co., Ltd, said it is likely to top VND11.3 trillion.

The expectations are based on its high credit growth in 2020 of 15.7 percent against 11 percent for the banking industry and a bancassurance deal it recently struck with Canadian insurance company Sun Life with an upfront fee of VND8.5 trillion.

ACB’s profits rose by 27.7 percent last year to VND9.6 trillion.