Export-Import Commercial Joint Stock Bank (Eximbank) set pre-tax profit from business activities at VND 2,150 billion.

In 2020, the Covid-19 epidemic negatively impacted the global economy in general and Vietnam in particular, but Eximbank's pre-tax profit still fulfilled 100% of the year's plan, growing by 22%. Key banking business segments such as card and Bancasurance also achieved outstanding growth rates. Accordingly, the card fee collection segment reached 127 billion VND, a growth of 144% compared to 2019. Insurance fee income reached 112 billion VND, a growth of 23%, contributing to bringing the growth of service income in 2020 to 20%. , the highest increase in the last 4 years.

Mr. Yasuhiro Saitoh - Chairman of the Board of Directors of Eximbank

According to Mr. Yasuhiro Saitoh - Chairman of the Board of Directors of Eximbank, recently, the Board of Directors issued a resolution setting a target pre-tax profit from business activities in 2021 of VND 2,150 billion, mobilizing capital from economic organizations and residents. increased by 10%, outstanding credit balance increased by 15% compared to 2020 (The Bank will adjust in case the State Bank announces another credit growth rate in 2021). This bank also improves interest income on total earning assets by 10-20 basis points in 2021. Non-interest income (including net income from services, net foreign exchange trading income) is expected target increase of 15% compared to 2020. At the same time, this bank also has a plan to strengthen debt handling and make additional provisions to pay off all VAMC debt in the first quarter of 2021. The impact of these drastic actions may, on the one hand, make the business results of the first quarter not as high as expected, but once VAMC debt has been completely resolved, the burden of provisions that had to be deducted annually previously will not be. It also causes Eximbank's pre-tax profit to reach VND 2,150 billion in 2021 and promises to continue to improve strongly in the following years.

Facing the epidemic situation, there are still many complicated developments, affecting bad debts of the banking industry in general and Eximbank in particular, but Mr. Nguyen Canh Vinh - Acting General Director of this bank added that he will not limit bad debt ratio at 2.5%. At the same time, the bank has had contingency plans and efforts to implement transformation so that the bank can adapt to the new context, especially good control of existing risks with continuous improvements in operations. and stable long-term growth.

To ensure capital safety and stable operations, Eximbank will continue to optimize and strictly control management costs, with an increase in management costs of about 16% (including salary increases for staff). according to the salary system and KPI results Talentnet advises), nearly 20% lower than the rate of increase in income from activities.

Therefore, to ensure efficiency, Eximbank must focus on improving loan margins, non-interest income, deploying business programs to increase cross-selling, develop the ecosystem, and increase the birth rate. portfolio profits.

In addition to the notable numbers, Eximbank also implemented actions in specific banking strategies such as: developing existing and potential individual customers, implementing business and serving specific customer segments. enterprise. Product focus and prices will be shaped and designed according to each segment. Eximbank enhances customer experience with technology platforms and increased convenience. From there, attracting more customers to transfer money to accounts opened at Eximbank, increasing demand deposit growth.

Mr. Canh Vinh added: "Currently, Eximbank meets international standards in risk management, ensuring capital adequacy ratio according to Basel II/Circular 13 of the State Bank of Vietnam. We understand that prioritizing investment in resources and technology for risk management to approach the most advanced standards in market practice is a prerequisite for sustainable development. The bank implemented the Internal Control System and internal assessment of capital adequacy and stress testing according to advice from auditing company KPMG from 2019-2020. The results show that the bank can overcome stress test scenarios when the economic situation is unfavorable. This is also the way leading banks in developed markets have been forced to apply in banking management and operations. 

Not only does Eximbank perfect its methodology, policies, regulations, processes, and organizational structure, it also builds practical tools and models to measure and monitor risks according to the requirements of Circular 13. , practically applied in daily business activities starting from the end of 2020. In the context of the epidemic, this bank's consolidated capital adequacy ratio at the end of 2020 reached 11.81%, meeting the The minimum total capital according to Circular 41 is 8%.

After a year of active operations in the foreign exchange market, overcoming much competition from leading major competitors, on February 5, 2021, Eximbank excellently received 2 prestigious awards: Power Bank Most Active Bank in Vietnam's foreign exchange market 2020 (Most Active Bank) and Best Foreign Exchange Market Maker in Vietnam 2020 (Best Market Maker) from Refinitiv (part of the London Stock Exchange - London Stock Exchange Group) - organization The world's leading prestigious organization in information, financial data and trading systems. The award not only demonstrates Eximbank's traditional strengths in the foreign exchange market but also recognizes the Bank's contribution in the mission of serving customers best and creating a competitive, healthy foreign exchange market that meets the needs of customers. best customer needs.

At the same time, Eximbank was also notified by the Asian Development Bank (ADB) to grant a trade finance limit and a revolving credit limit with a total value of up to 31 million USD (equivalent to 725 billion VND). Granting limits from reputable international financial institutions also confirms the increase in Eximbank's internal financial strength, as well as creating additional platforms for the Bank to serve customers better and operate more effectively.