An Binh Commercial Joint Stock Bank
About the Issuer
Established in 1993, ABBank is a small-sized privately-owned commercial bank focusing on retail and small and medium enterprises (SME) customers. Retail loans accounted for 56% of ABBank's gross loans as of June 2024; SME 16% and corporates 28%. The bank has leveraged the network of its key shareholders, including Hanoi General Export Corporation (Geleximco) and Electricity Vietnam (EVN, prior to divestment in 2016), to grow its customer base and core businesses.
Rating Results
Credit Opinion
(1) The bank successfully implements its de-risking strategy
(2) Establishes a track record of prudent credit underwriting, effective bad debt recovery
(3) Improved competitive position to gather low-cost deposits and grow its core business
(1) Its de-risking strategy fails to improve its customer mix and reduce its asset
risks, leading to further increases in new NPL formation rate; or
(2) Its credit exposure to higher-risk borrowers and
segments continues to increase, posing higher downside risks to its asset quality; or
(3) The bank's loss absorption capacity deteriorates, for example, the bank's TCE as percentage of RWA declines for successive quarters or its ROAA declines for successive quarters or its ROAA declines substantially and weakens its ability to retain capital; or
(4) The bank's vulnerability to liquidity risks increases through either higher reliance on short-term market funds ora prolonged weakening in its core deposits
(1) stable liquidity from adequate liquid assets
(1) higher-than-industry average non-performing loans and a significant increase in retail and SME loan delinquencies
(2) modest deposit franchise
Issuer analysis reports
Rating Results
Second Party Opinion
List of Second Party Opinions (SPO) published by VIS Rating for ABB.
VIS Rating has not issued a Second Party Opinion for this company
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