Company Insight

Q1/2024 business results update: ACB reports positive credit growth of approximately 3.7% ytd (growth in both retail and corporate segments) and customer deposit grew at 2.1% ytd. ACB's NIM continued to improve slightly compared to the end of 2023, CASA rose to 23%. acb's Q1/2024 pre-tax profit is estimated at VND4,900 billion (-5% yoy) due to increased provision expenses and no extraordinary income as in Q1/2023.

We forecast that ACB's credit growth in 2024 could reach a healthy 15% level. The NPL ratio is expected to be controlled at 1.3%, while NIM will edge up slightly to 4.04% (from 3.93% at the end of Q4/2023). Net fee and commission income could decline slightly by -6.94% YoY. This is due to the expectation that the bancassurance segment will recover slowly, while the low yield environment for bonds will make it difficult for ACB to recognize profits from government bond trading in 2024. We forecast ACB's PBT to reach VND 22,096 billion (+10.1% YoY).