Review Agribank 2019 - Vietnam Bank for Agriculture and Rural Development

Representative of Agribank said that Moody’s, an international credit rating organization, has just announced the credit rating results for Agribank. Accordingly, Agribank continued to be rated by Domestic Moody's long-term local currency deposit of Ba3

Review Agribank

Representative of Agribank said that Moody’s, an international credit rating organization, has just announced the credit rating results for Agribank. Accordingly, Agribank continued to be rated by Domestic Moody's long-term local currency deposit of Ba3 and ranked domestic issuer, long-term foreign currency Ba3 and stable outlook.

Thus, the first time to rank for Agribank, Moody’s - one of the most prestigious credit rating organizations in the world, has made positive assessments for Agribank.

According to Agribank's representative, in addition to rating credit for Agribank, Moody’s also emphasized Agribank has actively dealt with problematic assets in the last 5 years. Especially, there have been many important progresses in the last 6 months of 2018. Specifically, capital mobilization and liquidity of Agribank are at a good level, mainly from individual customers and less affected by market fluctuations.

Achieving these important results, Agribank and Moody’s representatives all said that Agribank has the advantage of the largest network in Vietnam with high support of the Government. In addition, Agribank is a 100% chartered state-owned bank, with a special mission in supporting and developing Vietnam's agriculture and rural areas.

Agribank representative said that the proportion of Agribank's agricultural and rural loans accounted for over 70% of total outstanding loans, accounting for over 50% of the rural credit market share in Vietnam. Along with that, Agribank is the largest bank in Vietnam in terms of deposits and has the largest network in Vietnam with 938 branches and 1,297 transaction offices, 62 mobile banks, 2,845 ATMs, 46 Autobank and 20,781 POS machines throughout country.

In order to meet the integration needs and the equitization process in the coming time, Agribank is focusing on improving the quality of human resources, both professionally and gradually improved.

In addition to international organizations of credit rating, Agribank has been in the Top 10 of 500 largest enterprises in Vietnam so far; is a national brand awarded by the Party and the State, recognized with many noble awards and titles, continuing to affirm the brand of "Financial institutions play a key role in the market. Rural finance in Vietnam ”./.

Agribank Bank Info - Vietnam Bank for Agriculture and Rural Development

In 1986, the Sixth Party Congress initiated the reforming way, determining the renovation of the banking system is a key stage. On March 26, 1988, the Council of Ministers (now the Government) issued Decree 53 / HDBT to establish specialized banks, including the Vietnam Agricultural Development Bank - the forerunner of Agribank. Vietnam Industry and Rural Development (Agribank) today. This memorable time is seen as an important milestone, marking the birth of Agribank - a specialized bank leading in investing in the most risky, most difficult but also most potential field - It is agriculture and rural areas.
In the journey with the growth and development of the national economy, agriculture and rural areas are identified as the leading "front". Under the direction of the Party, Government, State Bank, together with the will, bravery to overcome all difficulties and challenges, with innovative breakthroughs, new ways of doing things, Agribank takes on the important political tasks. weak in the rural agricultural credit market, affirming the key role in investment in the field has contributed positively to the achievements of Vietnam's economic reform, when our country has 70% of the labor force. active in the agricultural sector, 80% of the population lives in rural areas, and agriculture contributes about 22% of GDP, accounting for 30% of export turnover.
Affirming the leading and pioneering role of Vietnam's largest financial institution, besides actively participating in major programs of the Government and national key projects with the amount of loans up to goods Tens of thousands of billion dong, Agribank focused on providing capital and financial services in the traditional field, which is the "Tam Nong" and the priority areas of the Party and the Government. Thereby, Agribank contributed to the banking industry to effectively implement monetary policy, create jobs, increase income, improve people's lives, contributing to creating positive changes in restructuring. economic, rural infrastructure development, stable socio-economic issues in rural areas in Vietnam.

Agribank has always been determined to play a key role in the rural financial market

With a newly established starting point, the total assets are less than VND 1,500 billion; total capital of VND 1,056 billion, of which mobilized capital only accounted for 42%, the remaining 58% had to borrow from the State Bank; Total outstanding loans were VND 1,126 billion, of which 93% were short-term; NPL ratio over 10%; Clients are state-owned enterprises and cooperatives that are largely losing their jobs and are at risk of bankruptcy, so far, Agribank has become the leading State-owned Commercial Bank in Vietnam. total assets, capital, outstanding balance, 2,232 network of branches and transaction offices, staff of nearly 40,000 officials, employees and number of customers ...
In 2018, Agribank turned 30 years old. Agribank continues to affirm its position with a series of positive business results: maintaining the leading position of commercial banks in the ranking of 500 largest enterprises in Vietnam in 2018 (VNR 500), national brand 2018. By November 30, 2018, Agribank had total assets of nearly 1.3 million billion dong, the capital mobilized over 1.2 million billion dong, the total credit and investment debt reached over 1.1 million billion dong, in which agricultural and rural outstanding loans accounted for 73.6% / total outstanding loans and accounted for 51% credit market share of investment banking sector in this field. Agribank currently offers more than 200 convenient banking products and services, including outstanding products such as: Agribank E-Mobile Banking application; EMV standard chip card; Electronic tax payment; Cross-border payment; Agricultural loans ...
In 2018 Agribank officially launched mobile banking services to all regions of the country: In the first phase of phase 1, Agribank deployed mobile trading points with specialized cars to 30 branches; Phase 2 of phase 1 deployed 38 mobile transaction points at 37 branches. As of October 31, 2018, for the 30 branches deploying the first phase of the mobile car trading point project, Agribank has organized 2,045 trading sessions, serving 225,288 customers in 236 communes. country. Mobile banking service of Agribank has helped increase access to bank capital of people in remote areas, contributing to repay black credit.

Actively support economic cost reduction and growth support

 As a 100% state-owned bank, Agribank has always been at the forefront of strictly implementing the responsibility of the SBV, especially in lending and reducing interest rates. Well implementing social responsibilities, supporting enterprises to recover production and business activities, restructuring agricultural production effectively, in 2018, Agribank applied many solutions to solve difficulties in the business. credit system with customers; Simultaneously simplifying lending procedures at the same time, Agribank always pioneered to reduce lending rates, helping customers reduce capital costs. Specifically, on 09/01/2018, Agribank decided to lower lending rates for customers. From 10/01/2018, Agribank reduced short-term lending interest rate from maximum 6.5% / year to maximum 6.0% / year and reduced interest rates for medium and long-term loans from 8 % / year from 7.5% / year for customers who are prioritized according to TT39 / 2016 / TT-NHNN with transparent and healthy financial situation. Thus, right after the Conference on deploying the Bank's tasks in 2018 held by the SBV on the afternoon of January 9, 2018, implementing commitments before the Prime Minister and the Governor of the State Bank, Agribank was the pioneer commercial bank to implement interest reduction. lending rates, contributing to customer support to reduce capital costs. This is a positive move of Agribank in strictly implementing the Government's guidance on the bank credit should continue to promote the role of promoting economic growth, creating favorable conditions to promote the structural process. economy again. Credit continues to be expanded reasonably and focuses on development priority areas and motivates growth.
Contributing to reducing economic cost of business and supporting growth, Agribank accepted to reduce financial income by thousands of billion dong to implement a good loan program for fast and sustainable poverty reduction according to Resolution 30a / 2008 / NQ-CP for 64 districts of 18 provinces and cities nationwide; Lending to the National Target Program to build new rural areas, by September 30, 2018, Agribank has implemented loans in 100% of communes of the country under the new rural construction program with outstanding loans of over 400,000 VND billion, serving nearly 3 million customers. Agribank reduced operating costs, spent over VND 300 billion on social security activities, prioritized the areas of poverty reduction, gratitude, education, health, and agricultural roads. village ...

Innovation and proactive integration

30 years of innovation in Vietnam is a journey of international economic integration across many levels, diversity of forms, according to the principles and standards of the global market. Vietnam has established many strategic economic partnerships, actively building the ASEAN Community and perfecting the domestic market more fully under WTO commitments. To date, 64 countries have recognized Vietnam's economy as a market economy, including Vietnam's major trading partners. Vietnam has signed 10 regional and bilateral free trade agreements ... Deeply integrating Vietnam before many opportunities but also many challenges. Vietnam's agriculture is expected to have a lot of potential when it comes to integration, but the challenge is great and difficult to overcome without actively actively changing.
Playing an important role in the agricultural and rural credit market, being ready for necessary and sufficient conditions in the integration process, 2018 is defined as the year of significant significance in the roadmap to implement the War Scheme. business strategy for the period of 2016-2020, vision for 2030. The goal is set by Agribank to maintain the position of the leading Commercial Bank in Vietnam, operating under the state-controlled stock model; There is a technology foundation, modern and advanced management model and high financial capacity; versatile, safe, efficient, stable and sustainable business development; well perform the core and key tasks of credit supply and banking utility services in the field of rural agriculture.
2018 continues to mark the efforts of Agribank in promoting international cooperation and foreign relations to enhance its position and brand reputation in the direction of modern commercial banks. Agribank continues to be an active and active member in bilateral and multilateral relations at major international fora, meetings, contacts and working sessions of senior Party, State and Government leaders. Male, thereby opening up many opportunities for Agribank to contact, learn, strengthen connection and be ready to integrate, creating premises to continue expanding markets abroad.
With the determination of consensus, efforts to overcome all difficulties and challenges from the Board of Directors and nearly 40,000 officials and employees in more than 2,300 branches and transaction offices throughout the system in synchronous deployment of many solutions Accordingly, Agribank continued to maintain its leading position in commercial banks in the ranking of 500 largest enterprises in Vietnam in 2018 (VNR500), ranking 7th among 500 largest enterprises in Vietnam and ranking first among the Vietnamese commercial banks according to the ranking of VNR 500 based on the criteria of revenue, profit, asset size, human resources and the media's prestige. In 2018, the 30th anniversary of its founding, Agribank was honored to receive noble awards from the Party and the State: First-class Labor Medal, Certificate of Merit and Emulation Flag of the Government ... Images and prestige Agribank brand name continues to appear, accompanying national and international meaningful events and programs, contributing to positioning the image and brand of Agribank - Bank for "Tam Nong", Agribank - Retail bank, Agribank - Bank for the community, and is ready to adapt itself to the integration trend.

Agribank achieved a profit of VND 7,525 billion

Agribank said that in 2018, the profit before tax was VND 7,525 billion, soaring compared to the plan of VND 5,700 billion, the bad debt rate was 1.51%. In particular, of the 1.7 million billion VND of the entire investment banking industry for Tam Nong, Agribank's capital accounted for over 50%, equivalent to 85 trillion. This is a spectacular breakthrough of Agribank after 5 years of restructuring.

On January 16, 2011, Vietnam Bank for Agriculture and Rural Development (Agribank) held a conference to implement business tasks in 2019. In 2018, it was demonstrated that Agribank's management and administration has been carried out in the past. By the end of 2018, the set targets were more than 2 times higher than the time when the restructuring began. Agribank really overcame a difficult period, stood firm in competition.

Profit broke out after 5 years of restructuring

The report on the performance evaluation in 2018, Mr. Tiet Van Thanh, Member of the Members' Council, General Director, stated that 2018 is the year of the 30th anniversary of its founding, which is also 05 years from the time Agribank caught early restructuring process. At the end of 2018, Agribank completed comprehensively beyond 100% of the plan, achieved impressive results, continued to create an important foundation for Agribank to successfully implement the restructuring plan in connection with handling bad debts. in the period of 2016-2020, to equitize.

In 2018, profit before tax was VND 7,525 billion, this is the record break of Agribank compared to the plan of VND 5,700 billion. Total assets reached nearly VND 1,300 billion; Capital reached nearly VND 1,200 billion, growing by 11.8%; Credit and investment scale reached over VND 1,200 billion, an increase of 14.6% over the previous year, of which investment credit for "Tam Nong" accounted for 70.5% of Agribank's outstanding loans; Services reached VND 5,400 billion, up 21%; Bad debt according to Circular 02 is 1.51%, lower than 2017; Debt collection after processing VND 11,936 billion, reaching 104% of the target set by the Board of Directors; Deduction for risk provision reached VND 25,590 billion; The total reserve for risk management is nearly 20,000 billion VND, able to buy before the maturity of all debts sold to VAMC and promptly handle bad debts arising in 2019.

Of the 1.7 million billion VND of the entire investment banking industry for "Tam Nong", Agribank's capital accounted for over 50%. Agribank effectively implemented 07 policy credit programs and 02 national target programs on new rural construction and sustainable poverty reduction. As for lending new rural construction, Agribank has deployed to 100% of communes nationwide.
Agribank has reduced lending rates in priority areas and implemented many solutions to solve difficulties in credit relations for customers. Right from the beginning of 2018, Agribank actively reduced the lending interest rate by 0.5% per year for 5 priority areas and State credit programs.

In addition to reducing lending rates, Agribank also implemented 05 preferential credit packages for legal and individual customers with lower interest rates from 1% - 1.5% / year compared to lending rates. usually, common, normal.

With the desire to increase the ability to access capital and banking services for all people, especially in remote areas, travel difficulties, thereby contributing to repelling black credit, developing the payment market without using cash, in 2018, Agribank deployed safe and effective mobile transaction points with specialized cars (safely deployed 68 mobile transaction points with specialized cars with 2,746 sessions, serving nearly 300,000 customers at 357 communes nationwide, transaction turnover reached VND 3,500 billion), over 58,000 borrowing groups, developing microfinance services, lending nearly 4 million household and personal customers ...

2018 is also a 5-year milestone from the time Agribank started the restructuring process. Implementing Decision No. 254 / QD-TTg dated March 1, 2012 of the Prime Minister and Decision No. 53 / QD-NHNN dated November 15, 2013 of the Governor of the State Bank, Agribank has built and successfully implemented restructuring. Phase 1 with many positive changes, basically completing important objectives: Focusing on investing in "Tam Nong"; Handling bad debts; Capital withdrawal in subsidiaries that do not directly serve agriculture and rural areas; Restructuring organizational apparatus, especially the inspection and control system, internal audit; Improving the quality of human resources; Promoting the development of services ... All of them aim to better serve and serve customers. Entering the restructuring phase 2 is also implementing the Business Strategy for the period of 2016-2020 associated with bad debt handling and equitization process, applying the lessons learned in successful implementation. restructuring phase 1 and Agribank continued to finish before the deadline of restructuring plan associated with bad debt handling in the period of 2016-2020.

Agribank wants to increase charter capital and accelerate equitization

Agribank's CEO General Van Thanh also shared about the current difficulties of Agribank in supplementing charter capital (currently the charter capital of Agribank is at the lowest level compared to other large commercial banks, only 30,470 by the end of 2018). billions dong); Equitization is slow compared to the schedule; Lending to agriculture and rural areas often faces risks of unforeseen disasters, high operating costs and high risks while low interest rates. Agribank must compete equally with other commercial banks in mobilizing capital to meet lending needs ...

"Although Resolution 42 has created a legal corridor for credit institutions, including Agribank to accelerate the handling of bad debts, but this activity also faces difficulties and problems from actual implementation ...", Mr. Thanh said.

Addressing the meeting, SBV Governor Le Minh Hung highly appreciated Agribank's impressive results in 2018, which is also the result of the whole operation of Agribank recently. 

“The results of Agribank have made an important contribution to the overall success of the banking industry recognized by the Government. Agribank continued to assert the key role of state-owned commercial banks in the banking and financial market, especially credit investment, supply of products and services for agricultural development, farmers and rural areas, with actively contributing to poverty reduction, new rural construction ... ”, Governor Le Minh Hung affirmed.

Governor Le Minh Hung assessed Agribank has exceeded the comprehensive plan set at the beginning of 2018, the highest profit ever; effectively implement many policy credit programs, successfully apply the Mobile Banking model, demonstrating efforts in bringing capital and utility services to remote areas, thereby contributing to repel black credit ...

The Governor of the State Bank also highly appreciated Agribank's pioneering role in reducing lending rates, praising Agribank for well implementing the responsibilities of the State Bank in association with the mission of "Tam Nong", and highly appreciated Agibank has been very active in restructuring, as well as the process of handling bad debts with positive results.

Besides, Governor Le Minh Hung also frankly mentioned the problems and asked Agribank to pay attention to deal with in the coming time. The Governor of the SBV proposed Agribank to thoroughly organize the implementation of Directive 01 of the State Bank, continue to build a long-term development strategy, focusing on implementing a commercial bank's task with "Tam Nong" as the name of the Bank. , it is necessary to pay attention to high-tech agricultural applications, clean agriculture, promote consumer credit development to contribute to repelling black credit ... In order to continue to successfully implement the restructuring scheme in association with processing bad debts from now to 2020, many tasks are set for Agribank.

"Agribank needs to coordinate with Ministries and Branches to solve the problem of increasing charter capital soon, to plan to increase the level 2 equity capital, to restructure subsidiaries and associated companies, to soon resolve the issue. ALCI legal entity; soon completed the plan of arranging and handling real estate related to the equitization roadmap ... ", Governor Le Minh Hung directed.

Immediately after the direction of the Governor, Chairman of Agribank's Membership Council Trinh Ngoc Khanh promised to materialize in the contents of Resolution 01 of 2019 of Agribank Board of Members to guide the whole implementation system.

The orientation of Agribank to 2025 is to maintain the position of the leading commercial bank in Vietnam, and to be ready to get ready for the history of transfer from 100% state-owned commercial banks to joint-stock commercial banks.

Agribank entered the top 500 strongest brand banks in Asia - Pacific

Agribank is highly appreciated in terms of total assets, lending rates compared to deposits, capital adequacy ratios ...,

The Asian Banker list of 500 strongest brand banks in Asia Pacific is based on asset size and some other criteria to list the top 500 banks (AB500Rank).

The ranking of 500 strongest brand banks is based on the belief in the long-term profitability of the core business of banks or the strongest brand banks in the region. Some indicators accounted for a large proportion were considered such as total assets size (17.5%), provision ratio / total bad debt (12.5%), bad debt ratio (12.5%) , lending / mobilization rate (10%), capital adequacy ratio (10%) ... Agribank ranked 156th in the region's ranking.

Agribank is currently the largest bank in Vietnam in terms of deposits and has the largest network in Vietnam with 938 branches and 1,297 transaction offices, 62 mobile banks, 2,845 ATMs, 46 Autobank and 20,781 POS machines nationwide.

In 2018, Agribank's profit increased a record, continuously exceeded the restructuring plan, changed technology strongly ..., continued to affirm the brand of financial institutions plays a key role in the financial market. rural key in Vietnam.

The return on total assets (ROA) of Agribank tends to improve in 2019 due to lower provision expenses. Agribank aims to raise capital through initial public offering, expected IPO in 2020.

In January 2019, International credit rating organization Moody's announced the credit rating results for Vietnam Bank for Agriculture and Rural Development (Agribank), ranking the long-term local currency deposit Ba3. and ranking domestic and foreign issuers in long-term, Ba3 level, outlook stable. The first time rated by Moody's, Agribank has been given a positive rating by one of the most prestigious credit rating organizations in the world on the level of Vietnam's national credit rating. and 3 State-owned commercial banks including Vietcombank, Vietinbank and BIDV.

The results stated above reflect efforts, efforts and determination to overcome difficulties and fulfill the tasks of Agribank in the restructuring process. Agribank is the only commercial bank with 100% capital owned by the State, playing a key role in lending to agricultural development, providing banking and financial services in rural areas and the economy. Agribank is continuing to consolidate a solid foundation, increase competitiveness, enhance brand value, be ready for the equitization and integration roadmap.



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Review Agribank 2019 - Vietnam Bank for Agriculture and Rural Development
Representative of Agribank said that Moody’s, an international credit rating organization, has just announced the credit rating results for Agribank. Accordingly, Agribank continued to be rated by Domestic Moody's long-term local currency deposit of Ba3
Breaking Vietnam news | Vietnam's #1 News Site |
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