In its rating announcement on 27/8, Fitch also assigned VietABank a Viability Rating (VR) of 'b+' and a Government Support Rating (GSR) of 'b+'.
According to Fitch, the rating reflects VietABank's improved financial capacity, reduced non-performing loan (NPL) ratio, and prudent risk management. Specifically, by the end of June, the NPL ratio was only 1.1%, significantly down from 2.3% at the end of 2020, among the lowest in the banking system, thanks to the bank's proactive debt management policy. The report also acknowledged the bank's efforts in controlled credit expansion, especially to small and medium-sized enterprises (SMEs), a sector that contributes significantly to Vietnam's economic growth.
At the end of the first half of the year, VietABank's Fitch Core Capital (FCC) ratio was 7.9%, slightly down from 8.3% at the end of 2024 due to rapid credit growth. To strengthen its financial capacity, the bank has received shareholder approval for a rights issue this year, expected to increase the FCC ratio by about 2.5%, creating room for credit expansion and improving capital adequacy.
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VietABank offers various support policies for SMEs. Photo: VietABank |
VietABank offers various support policies for SMEs. Photo: VietABank
In addition to financial factors, Fitch praised VietABank's digital transformation strategy, focusing on its Omni-Channel banking platform scheduled to launch in Quarter IV/2025. Along with this, the plan to increase charter capital to over 8,164 billion VND through a stock dividend is considered an important basis for the bank to consolidate capital, improve safety ratios, and expand growth potential.
Regarding the growth outlook, Fitch believes that Vietnam's continued strong economic growth will be an important support for VietABank's stability. The organization expects the bank to continue its tight risk management, improve profitability, and maintain its current credit profile. According to Fitch, VietABank could be upgraded if it achieves an FCC ratio of 10% or higher, an NPL ratio below 1.5%, expands its deposit market share to above 3%, and sustainably improves profits.
Nguyen Van Trong, CEO of VietABank, said that the B+ credit rating from Fitch Ratings is recognition of the bank's efforts in risk management, safe and transparent development.
"This will be a platform for the bank to continue expanding cooperation with international financial institutions, diversify capital sources, and increase investor confidence," Trong emphasized.
Previously, VAB shares were listed on the HoSE on 22/7. According to VietABank's leadership, the listing on HoSE helps improve transparency, liquidity, and prestige in the capital market. Thereby, the bank expects to strengthen its position in the joint-stock commercial banking system, affirming its sustainable development orientation and accompanying Vietnam's digital economic progress.
Minh Ngoc
