ABBANK Persistent with “Partnership with Customers for Development” Strategy

11:10:34 AM | 25/7/2019

Taking customer satisfaction as the compass for all business activities, ABBANK has been constantly developing convenient, effective and flexible financial solutions packages to timely meet diverse needs of customers, especially corporations.

In 2018, ABBANK increased credit access for corporate customers by revising its security asset policies and building exclusive products for strategic corporate customers which carry out State-funded or ODA-funded projects/bid packages. Its outstanding loans for corporate customers reached VND20,132 billion (US$875 million) in 2018. The value is forecast to reach VND23,590 billion (over US$1 billion) by December 31, 2019, matching ABBANK's strategy as well as the State Bank of Vietnam’s credit growth policy.

Besides, deposits mobilized from corporate customers amounted to VND30,108 billion (US$1.35 billion) in the year. The deposit-to-loan ratio was maintained at over 33%, helping lower average deposit interest rates. Fee revenue from corporate customers (including guarantee fee) was over VND114 billion.

In addition, ABBANK has carried out many business support programs such as the second Rural Development Fund (RDF II), the Vietnam Sustainable Agriculture Transformation (VnSAT) Project, and the Vietnamese dong funding program carrying foreign currency interest rates to support enterprises engaged in priority areas stipulated by the State Bank of Vietnam (rural agriculture, export, small and medium enterprises, and hi-tech enterprises). For target customer groups, ABBANK has implemented the “Trusted Partner - Successful Cooperation” Program and the “Interest Preference - Business Advantage” Program to support businesses to borrow loans at reasonable financial costs to develop business operations, increase utilities for them by using ABBANK's product and service packages.

As for small and medium-sized enterprises (SMEs), ABBANK has so far completed key products for SMEs to meet their needs. The outstanding loan balance for SMEs as of December 31, 2018 was VND9,826 billion, an increase of VND584 billion over 2017, rising 6%. Deposits mobilized from this group of customers was VND3,663 billion, an increase of VND984 billion, or 37% higher than a year ago. In particular, the bank has introduced easy-to-use and flexible product lines such as SME Flex, SME Fast Loan and SME Biz Loan for a large number of customers, achieving a growth rate of more than 3.4 times in customers and debt balance in 2018.

Notably, ABBANK has launched more credit products especially designed for SMEs such as SME Open – with which the loan can be approved in 36 hours, SME Extra – with which the customer can borrow up to 10% more on the value of collateral; quick credit limit refinancing – helping reduce the processing time for refinancing documents for existing customers; and financing package/economic contract - receiving security assets as debt claiming rights in the future to serve a wider range of customers.

With these achievements, 2018 was the second year that ABBANK’s SME products were honored with the Best SME Product Vietnam Award 2018 by International Finance Magazine (IFM).

Most SMEs have small scale, low level of management and scientific application in production, spontaneous operation and lack business plans and strategies, resulting in difficulty with asset mortgages and financial planning. Therefore, ABBANK has helped solve these matters by increasing the collateral-to-loan ratio to 100% for qualified customers and providing partial unsecured credit in addition to collateral-guaranteed credit at ABBANK, like offering unsecured loans up to 15% of secured loans and guaranteed unsecured loans equal to 70% of secured loans.

ABBANK’s flexible solutions have made it easier for many businesses to access credit. The bank has really become a true companion of the business community in the current context of rapid development and intensive integration.