2018 - ABBANK · 2018-04-19 · 6 Business plan 2018 DETAILED PLAN PART 1 – MARKET OVERVIEW 2018 I. FORECAST ON GLOBAL AND VIETNAM ECONOMY IN 2018 1. Global economy The 2018 global

1 Business plan 2018

BUSINESS PLAN

2018

HCM City, April 2018


CONTENT

EXECUTIVE SUMMARY 3

DETAILED PLAN 6

PART 1 – MARKET OVERVIEW 2018 6

I. FORECAST ON GLOBAL AND VIETNAM ECONOMY IN 2018 6

II. FORECAST ON VIETNAM FINANCE AND BANKING MARKET IN 2018 6

PART 2 – BUSINESS PLAN 2018 8

I. STRATEGIC PRIORITIES OF 2018 8

II. FINANCIAL TARGETS 10

III. ACTION PLAN OF THE YEAR 2018 12

A. TARGETS ON CUSTOMER 12

1. Consumer Banking 12

2. Business targets of 2018 13

3. Small and medium business customer (SME Banking) 13

4. Interbank investment activities 14

5. Network development and marketing activities 16

B. TARGETS ON OPERATION AND ORGANIZATION 17

1. Credit management 17

2. Debt workout 17

4. Operation management 18

5. Progress of 5 strategic goals and strategic intiatives: 19

8. Internal audit 19

9. Legal & Compliance 19

APPENDIX 21

ABBANK’s Finance plan of 2018 21


EXECUTIVE SUMMARY

I. Priority activities of the year 2018

- Continue ABBANK's vision and strategic directions until 2020:

Focus on retail banking.

Increase the proportion of service income in income structure, including income from

traditional banking services and other services such as asset valuation, insurance consultancy

and cooperation.

Improve ROE ratio to catch up with Top 5 private joint stock banks.

Build environment friendly and professional working.

Modern corporate governance according to international standards: Through the

implementation of the second phase of the project "Improving organizational and operational

efficiency of ABBANK"

- Continue to maintain a high credit rating in banking market

- Enhance ABBANK's brand in the market

- Pay attention to the development of digital banking technology to create the foundation for the

breakthrough of competitive products in the retail segment and improve risk and technology

management.

- Implement strategic projects have been approved by the board in the year 2018 (The project

Digital Banking; Score card project profile (Application Scorecard) for SME client,...)

- ABBANK is listed on the stock exchange.

- Improve operational efficiency and optimize the utilization of equity and create a sustainable

premise for growth in the long run.

With these strategic orientations, the entire bank will continue to focus resources on three

areas: (i) customer (ii) operation - organization and (iii) learning and development in 2018 to

achieve financial goals.

(1) Customer include: customer banking, Small and medium business customer (SMEs),

cooperate banking, interbank and marketing & network development.

(2) Operation - organization include: Credit management, debt workout, risk management,

operation management, quality management and information technology management,

internal audit and legal & compliance.

(3) Learning and human resource development


II. Summary of financial targets in 2018

*Unit: Billion VND

Items Plan

2018

2017 Compared to 2017

result

Compared to 2017

plan

Result Plan +/- % +/- %

Total assets 106,198 84,724 80,600 21,473 125% 25,598 132%

Loans 70,024 57,175 56,666 12,850 122% 13,358 124%

- Market 1 55,263 48,226 51,262 7,037 115% 4,001 108%

- Market 2 14,761 8,948 5,404 5,813 165% 9,357 273%

Deposit 96,714 76,956 73,353 19,757 126% 23,360 132%

- Market 1 82,837 62,593 64,669 20,244 132% 18,168 128%

- Market 2 13,876 14,363 8,684 (487) 97% 5,192 160%

Total operating

income 3,261.3 2,681.1 2,676.1 580.2 122% 585.2 122%

Operating espense 1,804.3 1,565.1 1,650.1 239.3 115% 154.2 109%

Profit before credit

risk provision 1,456.9 1,116.0 1,025.9 340.9 131% 431.0 142%

Credit risk provision 556.9 511.3 576.0 45.6 109% (19.0) 97%

Profit before tax 900.0 604.7 450.0 295.3 149% 450.0 200%

III. Summary of key financial indicators in 2018

Items Plan 2018

2017

Unit Result Plan

Return on average Equity (ROaE) 13.6% 10.2% 7.7% %/y

Return on average Asset (ROaA) 0.9% 0.8% 0.6% %/y

Cost income ratio (CIR) 53.1% 55.7% 59.3% %

Capital Adequacy Ratio (CAR) >9% 12.6% >9% %

Asset Equity Ratio (A/E) 14.2 13.9 13.8 Times

Debt Equity Ratio (D/E) 13.2 12.9 12.8 Times

Equity Asset Ratio (E/A) 7.1% 7.2% 7.3% %

Debt Asset Ratio (D/A) 92.9% 92.8% 92.7% %

Loans Asset Ratio (LAR- credit risk

factor 67.9% 72.6% 73.0% %

Loans Deposit Ratio (LDR) 65.0% 76.6% 77.9% %

Profit before tax/staff 216 169 125 VND mil/y

Operating expenses/staff 395 402 415 VND mil/y


IV. Debt workout plan of 2018

The workout plan of the entire bank is expected at least 700 billion VND of the international

standard NPL - equivalent to the results of year 2017, in which, the plan of Workout Committee is

at the minimum of 250 billion VND.

Business plan 2018 is specified in the attached file.

Respectfully,

An Binh Commercial Joint Stock Bank

Acting Chief Executive Officer

NGUYEN MANH QUAN


DETAILED PLAN

PART 1 – MARKET OVERVIEW 2018

I. FORECAST ON GLOBAL AND VIETNAM ECONOMY IN 2018

1. Global economy

The 2018 global economy is forecasted to maintain its growth momentum in 2017. According to

the IMF forecasts, global economic growth in 2018 will reach 3.4%.

The APEC Conference (November 2017) issued a joint statement on how parties should enhance

cooperation to ensure greater trade, support for increased access to markets and handle unfair trade

practices. It also calls for the removal of market distortions as well as other forms of government

support. The CP-TPP multilateral trade agreement, replacing the TPP and not involving the United

States, signed March 2018. This can be considered as a breakthrough of regional free trade,

marking a new milestone in the process of international integration and multilateral trade

development.

2. Vietnamese economy

GDP growth of 2017 is forecasted at 6.7%, higher than 2016 (6.21%). Accelerating growth

momentum in large economies and recovering global trade in 2017 because of rising incomes and

declining poverty lead to a prosperous year of Vietnamese economy with high growth and stable

macroeconomy.

II. FORECAST ON VIETNAM FINANCE AND BANKING MARKET IN 2018

1. Interest rate

- The mobilizing interest rate in the market 1 increased slightly when some largecommercial

banks with high deposit proportion like VietinBank and BIDV raised interest rates in short terms.

Although deposit rates increased slightly in some commercial banks, but lending interest rates were

quite stable. At the moment, lending interest rate in five priority sectors is 6.5%, except for some

commercial banks at 6%, in the manufacturing & business sector, the common interest rate

maintained at 9.3-11% with over 6-month tenor.

- The deposit and lending rates are unlikely to change much in the first half of 2018, but

experience some pressure by the end of 2018, such as strong credit growth, or the fact that FED

will continue to tighten monetary policy can reduce the attractiveness of VND against USD. The

State Bank (SBV) may consider further easing some regulatory rates, including open market

interest rates. Meanwhile, interbank interest rates will generally be low with short term increasing


due to seasonal factors, especially on Tet holidays or meeting disbursement needs of budget in the

short term.

2. Exchange rate

- The foreign exchange market is still supported by many factors such as: the supply of

foreign currency was significantly supported when the trade balance surged and foreign investment

inflows increased; The difference between VND and USD deposit rates was still in favor of holding

VND. Foreign exchange reserves will be maintained at a high level the central bank, effectively

supporting the exchange rate stability.

- The USD/VND exchange rate stable and continues to bo supported by the abundant supply

of foreign currency. As of 29/3/2018, the central rate at 22,463 USD/VND, rising 0.21% compared

with the end of year 2017. Mean while, the rate commercial bank increased by 0.25%, the free

market rates rose 0.4% compared with the beginning of 2018.

3. Credit growth

Facing economic pressure with more challenging in 2018, especially the unpredictable

developments of the global economy, credit growth is expected to remain the same growth of 2017

With the goal of controlling credit size and improving credit quality, the credit growth target for

2018 will not be much higher than 2017 and continue to favor agriculture, rural areas, export…

and credit supervision for potentially risky sectors such as real estate. The forecast, in 2018, the

central bank will run credit growth of the whole industry in the range of 14% - 17% in the year

2018.

4. Bad debts & VAMC

Commercial banks are speeding up the handling of bad debts based on Resolution No.

42/2017/QH14. Bad debt recovery from 2018 is expected to maintain positive, but still need more

supportive policies.

5. Banking business activities

Positive factors from the macroeconomic environment will help overcome weaknesses in the

structure and support the outlook for stable development for banking sector in 2018. However, the

burden of provisions for bad debt and VAMC bonds continue to put negative impact on the

profitability of banks as well as the implementation of Basel II which will put great pressure on the

capital structure.


PART 2 – BUSINESS PLAN 2018

I. STRATEGIC PRIORITIES OF 2018

1. Continue ABBANK's vision and strategic directions until 2020:

- Focus on retail banking:

Focus on the business of retail banking. The Corporate Division and Treasury % Investment

Division continued to promote its strengths in business activities and accelerated the

coordination with Consumer Division and SME Division to develop programs and products

to exploit the ecosystems, customer systems and the partner of the customers.

Maximize the efficiency of the existing network by developing the consumer segment at

all transaction offices as well as considering and distributing the business force in SME

segment appropriately; corporate segment is gathered in large-scale branches, qualified in

market and resources of facilities and sales team.

- Achieve Top 5 ROE: Improve operational efficiency, maximize profitability and control

expense to increase ROE ratio to catch up with the top 5 private banks group.

- Build a friendly and professional working culture:

- Modern corporate governance according to international standards: Apply the parallel

management model to improve the efficiency of governance; focus resources on business at

all business offices and risk management complied with the Basel II framework.

2. Continue to maintain the high credit rating in the market

In 2016, Moody’s upgraded ABBANK’s BCA rating from B3 to B2, among the top-tier private

joint stock banks in Vietnam. Following this success, in 2017 ABBANK continued to participate

and exploit from the most prestigious credit rating agencies in the world with the expectation of

bringing positive results and brand spreading in the banking sector, especially improve the prestige

and attract customers and partners using ABBANK services.

3. Enhance ABBANK's brand in the market

ABBANK continues to promote the ABBANK brand in the market with the aim to become

the leading commercial joint stock bank in Vietnam focusing on the retail sector. Accordingly,

ABBANK brand is positioned as a friendly, prestigious and trustworthy retail bank to attract the

customers, thereby building the confidence of customers for ABBANK’s brand, products and

services


4. Focus on Digital Banking development

ABBANK will promote investment in the development and application of modern technology

in order to create the foundation for the breakthrough in diversified product development and

increase the hi-tech products in the competition in the retail segment to meet the increasing demand

and create the maximum convenience for customers.

5. Continue to implement strategic initiativies

The road to build the foundation for the sustainable development of ABBANK is about to be

completed in line with the roadmap. From 2014 to 2016, ABBANK deployed 20 projects, and by

31/12/2016, there were 15 100% completed projects; 05 projects has and will continue to deloy

and are expected to be completed by the end of 2020. In addition, the board also always actively

build and approve the deloyment of the project strategic stature needed in each stage of the project,

such as: improving the efficiency of the organization and jont activities (completed phase 1 in 2017

and implement in 2018); The project of Digital Banking (in 2018); Smart agriculture project

(implement in 2018 and 2019);...etc. The projects goes into operation has brought practical results

to ABBANK and contributed to an effective, professional and modern image of ABBANK.

6. ABBANK’s stock is listed on stock exchange

Board of management and Board of the make the next job to put up joint stock trading after

shareholders approved listing.

7. Increase the proportion of service income in income structure:

Reduce the dependence on interest income, especially the dependence on income from

treassury activities such as exchange rates, bonds...

8. Improve operational efficiency and optimize the utilization of equity and create a

sustainable premise for growth in the long run.

In the case of increased equity: Develop and implement a plan to utilize the increased capital

effectively and comply with the capital increase route. Specifically:

- Effectively investment in infrastructure development projects for long-term development.

- Improve asset quality as well as build suitable medium and long-term asset structure to optimize

capital efficiency and ensure the safety and stability.

- Maintain the reasonable profit margin to build the confidence for shareholders and affirm

the competitive position of ABBANK in the market.


II. FINANCIAL TARGETS

1. Financial targets of the entire bank in 2018

1.1 Financial targets of 2018

Unit: Billion VND

Criteria Plan 2018 2017

Compared to

result 2017

Compared to

plan 2017

Result Plan +/- % +/- %

Total assets 106,198 84,724 80,600 21,473 125% 25,598 132%

Loans

Total loans 55,263 48,226 51,262 7,037 115% 4,001 108%

Large corporate 20,549 19,329 19,858 1,220 106% 691 103%

SME 13,338 9,242 12,249 4,096 144% 1,089 109%

Consumer 21,376 19,655 19,155 1,721 109% 2,221 112%

Short term 26,310 21,967 23,718 4,343 120% 2,592 111%

Mid and long term 28,954 26,259 27,545 2,695 110% 1,409 105%

Deposits

Total deposits 82,837 62,593 64,669 20,244 132% 18,168 128%

Large corporate 39,449 30,093 30,439 9,356 131% 9,010 130%

In which: Institutional

loans of FI

(IFC+ADB)

4,680 2,467

2,213 190%

SME 5,916 2,681 4,590 3,235 221% 1,325 129%

Consumer 37,472 29,819 29,640 7,653 126% 7,832 126%

Non-Term 14,361 12,751 14,755 1,611 113% (394) 97%

Term 68,475 49,842 49,914 18,633 137% 18,561 137%

Interbank

Deposits at and

Lending to other credit

institutions

22,428 13,596 7,076 8,832 165% 15,352 317%

Deposits and

Borrowing from other

credit institutions

13,876 14,363 8,684 (487) 97% 5,192 160%

Investment

Shares - 49 2 (49) 0% (2) 0%

Government Bonds 17,000 12,273 11,000 4,727 139% 6,000 155%

Credit institutions

Bonds 2,250 2,254 2,200 (4) 100% 50 102%

Corporate Bonds 4,398 3,851 4,275 547 114% 123 103%

Investment Securities 23,648 18,427 17,477 5,221 128% 6,171 135%

Trade Securities - 200 - (200) 0% -

Long-term Investment 443 571 444 (128) 78% (1) 100%

Business

result

Net interest income 2,534.6 2,149.4 2,277.6 385.3 118% 257.0 111%

Income from services 266.6 173.4 178.4 93.2 154% 88.2 149%

Other income 460.0 358.3 220.1 101.7 128% 239.9 209%

Total operating

income 3,261.3 2,681.1 2,676.1 580.2 122% 585.2 122%

Operating expense 1,804.3 1,565.1 1,650.1 239.3 115% 154.2 109%

Earnings before

provision 1,456.9 1,116.0 1,025.9 340.9 131% 431.0 142%

Total provision

expense 556.9 511.3 576.0 45.6 109% (19.0) 97%

Earnings before tax 900.0 604.7 450.0 295.3 149% 450.0 200%


Total assets in 2018 are set to increase by 25,598 billion compared to the 2017 plan (equivalent

to 32% increase) with the expectation of growth from lending, investment securities; corresponding

to Credit asset side with mobilization from customers and medium and long-term deposits from

IFC and ADB.

Analysis of planned earrning in 2018

Earnings before tax in 2018 are expected to reach 900 billion VND, an increase of 450 billion

VND (equivalent to 100%) compared to the 2017 plan and 49% higher than the 2017 projection.

In which:

- Total operating income is expected to increase by 585.2 billion VND (22% higher)

compared to the 2017 plan and by 580.2 billion VND (22%) compared with the 2017

projection, including:

+ Net interest income is expected to increase by 257 billion VND (equivalent to 11%

higher) compared to the 2017 plan.

Income from services is expected to increase by 88.2 billion VND ( equivalent to 49%) as

compared to the 2017 plan and by billion VND or 54% higher than the 2017 projection.

+ Other incomes are planned to increase by 239.9 billion VND (equivalent to 109%)

compared with the 2017 plan with the expectation of increase from investment, foreign

exchange incomes... Compared with the 2017 projection, other incomes are planned to

increase by 101.7 billion VND (equivalent to 28%).

- Operating expenses increased by 154.2 billion VND, only 9% higher than the 2017 plan. The

increase was mainly from personnel expenses to meet the scale growing demand and

increasing asset expenses with intensive investment in information technology in 2018... Other

expenditure items will still be effective control.

- Total provision for credit and VAMC bonds in 2018 is about 556.9 billion VND which drop

by 19 billion VND (3%) compared with the 2017 plan due to the high growth rate and tight

control of bad debt.

1.2 Key financial indicators

Items Plan 2018 2017 Unit Result Plan

Return on average Equity (ROaE) 13.6% 10.2% 7.7% %/y

Return on average Asset (ROaA) 0.9% 0.8% 0.6% %/y

Cost income ratio (CIR) 53.1% 55.7% 59.3% %

Capital Adequacy Ratio (CAR) >9% 12.6% >9% %

Asset Equity Ratio (A/E) 14.2 13.9 13.8 Times


Items Plan 2018 2017 Unit Result Plan

Debt Equity Ratio (D/E) 13.2 12.9 12.8 Times

Equity Asset Ratio (E/A) 7.1% 7.2% 7.3% %

Debt Asset Ratio (D/A) 92.9% 92.8% 92.7% %

Loans Asset Ratio (LAR- credit risk factor) 67.9% 72.6% 73.0% %

Loans Deposit Ratio (LDR) (market 1) 65.0% 76.6% 77.9% %

Profit before tax/staff 216 169 125 VND mil/y

Operating expenses/staff 395 402 415 VND mil/y

2. Plan of debt workout in 2018

The workout plan of the entire bank is expected at least 700 billion VND of the international

standard NPL, in which, the plan of Workout Committee is at the minimum of 250 billion VND.

III. ACTION PLAN OF THE YEAR 2018

A. TARGETS ON CUSTOMER

1. Consumer Banking

1.1 Business targets of 2018

Unit: Billion VND

Item Plan 2018 Result

2017

Plan

2017

Compared to

result 2017

Compared to

plan 2017

(+/-) % (+/-) %

Deposits 37,472 29,819 29,640 7,653 126% 7,832 126%

Loans 21,376 19,655 19,155 1,721 109% 2,221 112%

Number of

customers 798,153 719,996 78,157 111%

Newly issued

cards 80,000 82,000 (2,000) 98%

Youcard 70,000 72,000 (2,000) 97%

Visa Debit 5,000 5,000 0 100%

Visa Credit 5,000 5,000 0 100%

1.2 The solution to actieve your goals

- Focus on developing new customers; make the most effective and 165 working business unit

and continue to expand the network in other potential; enhance collaboration with th business

to cross sell, cross sell product;


- Product development and distribution channels: the survey of potential markets, strengthen

links with partners to the business unit put out the development strategy of individual clients,

build credit products, the product associated with the insurance product, charge a free for the

service.

- Promote sales through sales/promotional programs, sales incentive program particularities;

the channel capacity to offer non traditional services such as online banking, mobile banking.

2. Business targets of 2018


2.2 The solution to achieve goals

- Promote programs build sales: build, deloy interal emulation programs, promoting business

program that promotes business activities across the system. Build, deloy the

communication program about the program/product promotion, incentives for corporate

clients and promote, introduce this program to clients, increasing the efficiency of

programs.

- Product development: the development of the products/services in accordance with the

target customer segment.

Improve the quality of service: offers products and services using high technology fits with the

trend of bank transactions.

3. Small and medium business customer (SME Banking)

3.1 Business targets in 2018

Unit: Billion

VND

Item Plan

2018

Result

2017

Plan

2017

Compared

to result

2017

Compared to

plan 2017

(+/-) % (+/-) %

Loans 20,549 19,329 19,858 1,220 106% 691 103%

Deposits 39,449 30,093 30,439 9,356 131% 9,010 130%

Service fee revenue (excl.

guarantee and insurance

fees) 83.4 60 63.4 23.4 139% 20 132%

Guarantee fee revenue 101 75 89 26 135% 12 113%

Trade service revenue

(million USD) 1,450 1,200 1,322 250 121% 128 110%


Unit: Billion VND

Item Plan 2018 Result

2017

Plan

2017

Compared to

result 2017

Compared to plan

2017

(+/-) % (+/-) %

Loans 13,338 9,242 12,249 4,096 144% 1,089 109%

Deposits 5,916 2,681 4,590 3,235 221% 1,325 129%

Number of customers 24,640

Service fee revenue

(excl. guarantee and

insurance fees)

62 40 22 155%

Insurance fee revenue 10 2.5 7.5 400%

Guarantee fee revenue 79 59.7 19.3 132%

Trade service revenue

(million USD) 0.881

3.2 The solution to achieve goals

- Review and adjust the issued credit product portfolio in line with customers’demand. On the

other hand, focus on developing new and cutting-edge products for specific segments and

customers.

- Develop risk management framework for SME customers as a basis for developing suitable

products for SME segment.

- Focus on exploiting effectively and increasing the value of the existing customers by building

business programs, sale promoting programs and preferential policies and mechanisms... for

each specific customer segment.

- Develop business model construction from the rural finance project smart due to IFC

consulting.Finalize the policy and implement the link with the partners Fintech (E-

commerce) Focus on promoting and recognizing SME branding

4. Interbank investment activities


a. Scale targets

Unit: Billion VND

Item

Plan

2017

Result

2017

Plan

2018

Compared to

result 2017

Compared to plan

2017

+/- % +/- %

1. Deposits at and Lending

to other credit institutions 6,800 11,264 15,169 3,905 135% 8,369 223%

2. Deposits and Borrowing

from other credit

institutions

8,684 16,637 18,556 1,919 112% 9,872 214%


3. Valuable papers

investment 15,382 16,617 20,879 4,262 126% 5,497 136%

Government bond 11,000 12,273 17,000 4,727 139% 6,000 155%

Credit institutions bond 2,200 2,254 2,250 -4 100% 50 102%

Corporate bond 2,180 2,041 1,629 -412 80% -551 75%

Share 2 49 - -49 0% -2 0%

5. Capital contribution 444 571 443 -128 78% -1 100%

b. Profit target

Unit: Billion

VND

Item Plan Result Plan

Compared to

result 2017

Compared to

plan 2017

2017 2017 2018 +/- % +/- %

Money market -316.99 -376.36 351,85 24,51 6,5% 34,86 9,9%

Bond investment 1,043.00 1,193.99 1,312.84 118.85 110% 269.84 126%

Foreign exchange 73.50 80.53 140.69 60.16 175% 67.19 191%

Financial investment 25.58 32.16 26.00 -6.16 81% 0.42 102%

Profit/loss from other

activities -2.26 -5.51 - 5.51 0% 2.26 0%

Total profits before

credit risk provisions 247.93 313.95 401.56 87.60 128% 153.63 162%

CFU profits before

credit risk provisions 574.90 610.86 726.13 115.27 119% 151.23 126%

Total profits before

credit risk provisions

(icl. CFU)

822.83 924.81 1,127.68 202.88 122% 304.86 137%

Provisions -24.08 -50.40 1.70 52.10 25.78 -7%

Profit after provisions 798.75 874.41 1,129.38 254.97 129% 330.64 141%

4.2 Business solutions of 2018

- Liquidity and funding activities

Guarantee ABBANK’s liquidity with reasonable liquid assets to total assets ratio. Pay

attention to term and cash flow balancing, comply with of SBV’s regulations in terms of

compulsory reserve requirement, safe ratios, coverage ratios and GAP limits approved by

ALCO.

Monitor closely interest rate movements in the interbank market in order to adjust timely

FTP rates to catch up with the market trend and comply with lending/mobilization

orientation of ABBANK.

- Financial investment activities – capital contribution:


Manage, monitor and evaluate the performance and financial capability of enterprises in

the capital contribution portfolio in order to preserve investment capital.

- Money market activities

Ensure liquidity for the entire ABBANK system.

Continue to promote transactionsin foreign currencies in order to diversify business,

optimize profits for banks

- Bond investment and trading activities

Monitor the market situation and take decisions timely buy and sell government bonds to

maximize profits for the bank..

.Continue monitoring and closely managing the operation of invested credit institutions to

minimizing risks in investment.

Strengthen supervision, urging and follow-up debt recovery of corporate bonds maturing

in 2018 for capital safety.

Besides, diversification of issued advisory services, financial advisory, and other

intermediary transactions helps to increase the consulting fees for ABBANK.

- Forex activities

Focus on supporting business units and establish foreign-currency-trading-support team

with customers in order to keep foreign exchange market shares.

Increase interbank transactions; boost US dollars trading to increase sales and profits.

Cooperate with business units in retail-orientation to issue competitive prices in order to

attract, develop new customers for sales growth with consumer and SME customers.

Strengthen interbank transactions, promoting the business status of the USD to enhance

sales and profits. .

Collaborated with your review of the FI the potential bank partners but no transaction limit

in order to expand the banking operation.

5. Network development and marketing activities

5.1 Network development plan in 2018

- Implement plans to upgrade and renovate repair

5.2 The headquarters, new construction, conversion or purchase neww ground location the

heaquarters for the business units according to the approved plan.Branding and marketing

activities in 2018


- Commited goal: Increase the position of ABBANK by one rank in the ranking of

commercial banks in Vietnam.

- Implementation activities:

+ Promotion campaign to celebrate the 25 year anniversary of ABBANK: Strengthen the

annual marketing activities in the 5 main areas: brand, media, Product and Service,

business unit support and market research.

+ Implement social security according to the direction of the Board of Directors.

B. TARGETS ON OPERATION AND ORGANIZATION

1. Credit management

Construction, adjustment of tracking systems and data related to credit to meet the

requirements in joint management and SME report.Check compliance in credit supply

activities:reviewing the compliance process for granting credit to support credit quality

control throughout the system.

Make reevaluate and credit approval according to time permissions, make sure the

decision making process to support the credit level: procision, control the compliance

with the direction on the entire credit system and credit growth under th compliance rate

of the state bank.

Control/adjustment of asset appraisal price bracket.Quality control of valuation records.

Track, update planning information, market price fluctuations of the real estate segment

to make recommendations and warnings suitable for the system and minimize the risk of

collateral due to sudden price fluctuation each segment or asset planning, dispute.

2. Debt workout

- Effectively apply the legal corridor which related to workout assignment, especially in the

realization activities, seizure of the property in compliance with Resolution No.42/2017 in

order to improve the effectiveness of debt recovery.

- Concentrative education and training the workout profession for the staffs of Workout

Committee and business units.

- Plan on the bad debt selling to VAMC:. To sell debt to Vietnam Asset management limited

company (VAMC) in accordance with the actual situation of ABBANK debt developments

from time to time and under the general guidance of the state bank.


3. Risk Management

- Based on the new credit policy approved by BOD, Credit risk management department review

and issue new regulations replacing inappropriate regulations to ensure compliance with the

credit policy (namely 06C), particularly Credit granting policy, guarantee policy and policy on

collaterals will be prioritized.

- Review and adjust Credit Committee model; review organization, functions and

responsibilities of Committees (RMC, ERC) to ensure consistency with “Project on the

enhancement of operation and efficiency of ABBANK”; manage the credit approval

authorization in compliance.

- Control credit portfolio to ensure compliance with Credit orientation, credit risk threshold in

2018 and all financial covernants of IFC, ADB. Independent advice about the risks with respect

to the decision of ALCO and the parties concerned about the market, liquidity. Advisse the unit

on policy, risk mitigation measures.

- Build and quantify operational risk appetite. Orient to develop credit in 2018, credit risk

threshold in 2018 and list of countries accepted in commercial trading in 2018.

- Analyze and assess data of credit rating system, operate ICR system; support and train business

units regarding ICR system.

- Enhance Internal Credit rating system by controlling rating results effectively and

strengthening risk checkpoints.

- Develop Internal Credit rating system (Application Scorecard) for SME segment to control risk

and to comply with Basel II requirements.

4. Operation management

- Continue improving qutomation of interbank payment transfers to improve operational

efficiency, increase labor productivity.

- Ensure the speed of transaction processing, and ensure thesecurity of transactions: the given

SLA: > 95%

- Straight-through processing swift messages ratio: >= 96%

- Loss control risks relating to the operating activities of cards in the lower threshold than the

industry average.

- Deploy the client project when using the card because the joint delivery and when dealing

on the ATM system of joint.

- Maintain and ensure the stability, smoothness of the Contact Center system, ready to receive

and process customers’ feedback 24/7.


5. Progress of 5 strategic goals and strategic intiatives:

- Ensure the updating of deployed projects in accordance with timeline and the vision,

orientation, objectives and strategic initiatives approved by BOD;

- Continue coordinating work with consultants, software units in the deployment phase 2

upgrade software to measure the results of strategic KPIBSC map.

6. Service Quality Management Department

- Internal service quality: implementation of the commitments SLAs (Service level

agreements); internal surveys; internal PR activities; emulation programs.

- Customer service quality: Customer service improving Project, Business units and Call

center‘s service quality evaluation through: camera system, direct & indirect methods,

emulation programs.

7. Information technology management

- Manage all applications operating in live environment of Bank, security monitoring it systems,

detect and prevent security incident handling

- Deploying new projects and maintaining infrastructure, deploying security assessments for

the all IT projects of the department in the ABBANK.

- The project of bank strategy (Digital Banking)

- Continue to maintain the stable, secure operation of information technology systems, fully

satisfying the requirements of the state bank and operational requirements, development of

joint business.

8. Internal audit

- Perform fieldworks/ unscheduled audit

- Contribute to help the board and the board of control/detect risks, thereby giving the

recommendations, follow up done to ensure enhanced operational efficiency and risk control.

9. Legal & Compliance

- Develop and submit internal documents, internal forms of ABBANK in the field of legal and

non-credit compliance monitoring.

- Act as a legal representative for ABBANK in resolving disputes at the competent state

agencies (except for cases related to debt settlement).


- Organize the implementation of non-credit compliance monitoring in accordance with the

approved monitoring procedures and plans, including remote monitoring and direct

monitoring.

C. HUMAN RESOURCES DEVELOPMENT

- Expand the recruitment information channels: actively activate the ABBANK Recruitment

Fan page on Facebook

- Expand the channels for candidate sources: Universities, Career fairs, online

sites….Remuneration policy: Adjust the basic salary according to the new regulation of the

Government from 1/1/2018.Human resources development: Continue reform the

“Management rotation” Program: Diversify the position and the placement forms.

- Continuously improve the training quality: Increase the number of internal lecturer

cetificated staffs and training staffs .

- Oranization of programs to build joint staff photo: Launch programs to promote innovations,

productivity increase….; conduct s atisfaction survey and other programs to celebrate 25th

birthday of ABBANK.


APPENDIX

ABBANK’s Finance plan of 2018

Items Plan Result Plan

Compared to result

2017

Compared to plan

2017

2018 2017 2017 +/- % +/- %

Total assets 106,198 84,724 80,600 21.473 125% 25.598 132%

Cash 1,177 873 908 304 135% 269 130%

Deposits at SBV 1,982 1,114 1,545 868 178% 437 128%

Deposits at and

Lending to other

credit institutions

22,428 13,596 7,076 8,832 165% 15,352 317%

Trade Securities - 199 - (199) 0% -

Investment

Securities 22,129 17,304 16,150 4,824 128% 5,978 137%

Loans 54,084 47,143 50,202 6,941 115% 3,882 108%

Loans 54,940 47,902 50,917 7,037 115% 4,023 108%

Provision (856) (760) (715) (96) -113% (141) -120%

Purchased Debts 321 321 343 - 100% (21) 94%

Purchased Debts 324 324 345 - 100% (22) 94%

Provision (3) (3) (3) - 100% 0 97%

Long term

investment and

Capital

contribution

443 570 442 (127) 78% 1 100%

Fixed asset 1,107 820 1,055 288 135% 53 105%

Other financial

derivatives and

assets

- 102 39 (102) 0% (39) 0%

Other asset 2,527 2,683 2,840 (156) 94% (313) 89%

Accounts

payable and

equity

106,198 84,724 80,600 21.473 125% 25.598 132%

Accounts

payable to

Government and

SBV

- - - - -

Deposits and

borrowing from

other financial

institutions

18,556 16,830 8,684 1,726 110% 9,872 214%

Funding from

other credit

institutions

- 286 - (286) 0% -

Derivative

financial

instruments

- - 292 - (292) 0%

Deposits from

clients 77,757 58,160 64,269 19,597 134% 13,488 121%

Issuance of

valuable papers 400 1,966 400 (1,566) 20% - 100%

Other liabilities 1,987 1,403 1,098 585 142% 889 181%

Capital and

funds 7,497 6,079 5,857 1,418 123% 1,640 128%

Documents

2018 - ABBANK · 2018-04-19 · 6 Business plan 2018 DETAILED PLAN PART 1 – MARKET OVERVIEW 2018 I. FORECAST ON GLOBAL AND VIETNAM ECONOMY IN 2018 1. Global economy The 2018 global