Agribank and a vigorous change towardscapitalization

TIN LIÊN QUAN
	Promoting the tradition of 30 years, in the year of 2018, Agribank has stepped firmly from its “internal strength”
	Agribank - Finance for Development of Agriculture and Rural Areas

Agribank

In early 2018, at the Conference on implementing the tasks of banking sector in 2018, Chairman of Agribank Board of members, Mr. Trinh Ngoc Khanh announced that Agribank would reduce additionally 0.5% interest rate on loans for all short, medium and long terms from January 10^th 2018. This decision was highly appreciated by the Government and the State Bank. In speech, Governor of the State Bank, Mr. Le Minh Hung affirmed: I commend the Agribank for reducing short, mediumandlong terminterest rates for Circular No. 39 and to pioneer the implementation of Resolution No. 01.

To look back on the past year, Chairman of Board of members, Trinh Ngoc Khanhsaid that 2017 was a year of the Party and the State have shown interest,created special conditions for the stable and sustainable development of the banking industry in general and commercial banks in particular.

In 2017, the Party and State paid special attention to creating a special condition for the stable and sustainable development of the banking sector in general and the commercial banks in particular. On the first day of the new year, manynew policies were promulgated: Resolution No. 01 / NQ-CP dated 1/1/2017 of the Government, Instruction No. 01 / CT-NHNN dated 10/01/2017 of the Governor of the State Bank that has orientated clearlyto assist credit organizations in planning their targets and programs.

Thanks to the appropriate policy of the Government, the active and flexible solutions in the management of monetary policy of the State Bank, the activities of credit organizations are basically more secure, the activities of credit organizations have been basically more secure, more efficient, the credit quality has been improved, the credit capital has been focused on the manufacturing sector, priority sectors such as rural agriculture, supporting industry, small and medium-sized enterprise (SMEs), high-tech application enterprise... Business results in 2017 of the commercial banks actually have many positive changes that clearly reflected the positive impact of macro policies.

The 2017 was over, the Agribank has excellently completed its business targets and tasks assigned by the State Bank of Vietnam compared with 2016. Total assets increased by 15%, attaining VND 1.2 quintillion. Capital mobilization increased 15%, reaching nearly VND 1.1 quintillion, mainly capital mobilized from the population. The good capital mobilization is a sustainable basis for the Agribank to expand credit. By the end of 2017, loan outstanding balance made the economy increase 17.6%, reaching nearly 900 thousand billion; Of which outstanding loans for agriculture and rural areas reached 650 thousand billion, accounting for 73.6% of debit balance. Besides, the Agribank always pay attention to quality assurance.

In 2017, the Agribank has applied many solutions to solve difficulties in credit relations with customers; simplifying loan procedures. Specially, the Agribank has piloted the model of mobile banks to serve the population in remote communes, creating favorable conditions for farmers to have better access to capital and banking services.

The Agribank has implemented 3 credit packages of interest rate lower than the interest rate of internal capital to support the customers in High technology agricultural production and trading, adjusting repayment term and debt extension in accordance with Decree 55/2015. / ND-CP of the Government for 2,200 customers, amount over VND 600 billion ...

In spite of havingmany interest rate cuts, theAgribank continued to grow with a stable revenue structure. The Agribank's pre-tax profit increased to 20% reaching VND 5,018 billion, which is the highest ever.

The Agribank has taken more initiative in dealing with bad debts and handling of security assets.  In the process of implementation, the Agribank received much more support from branches and levels and especially with the principle of "prioritizing the protection of creditors' rights, applying Administrative measures and overcoming civil consequences before applying criminal remedies. "

The Agribank has aggressively implemented the total adjustment of lending interest rates of bad debts up to August 15^th 2017; exempt, reduce the backlog interest rate backdated under the original repayment period to encourage customers to find all sources of debt repayment, restore businessmanufacturing.

"With the support of the State bank and other ministries, departments and sectors together with the determination of the Agribank, the implementation of Resolution 42 at Agribank has brought many unexpected results," Chairman of the Board of Members, Trinh Ngoc Khanh said that: From August 15th to December 31st, 2017, withdrawal and debt settlement under Resolution 42 was VND 23.038billion, accounting for 55% of total debt processed and recovered in 2017. They actively reduced interest rates for 254,308 debt customers who have dealt with the risk.

The Agribank has continued to focus on financial resources, drastically applying debt recovery measuresto recreate financial resources for debt settlement. In 2017, the Agribank recovered nearly VND 12,000 billion from sold debt and thedealt risk, creating conditions for the extraction of credit loss provision in the year was VND19,715 billion. Raising the total Credit loss provision to VND 34,772 billion. Trinh Ngoc Khanh, Chairman of the Board of members, expressed his hope: "With the speed, the situation of handling bad debt as above, the ability to buy all the debts sold to VAMC before the deadline set by the Government and the State bank is feasible. "

Enter a new growth stage

In 2017, the Agribank incessantly attempted to improve the quality of products and services (SPDV), the development of e-banking services, the diversification of SPDV supply channels, whichcontributed to promote non-cash payment and enhancing access to banking and financial services in Vietnam.Implementing the project on service development strategy for the period 2016 - 2020, Customer Care Support Center was formally set up to bring this activity towards professionalism towards the standards of the modern bank, the Agribank'swhole system have evolved significantly from awareness to action, resulting in 7 out of 8 SPDV groups maintaining the growth momentum, bringing the total system service revenue up 24%, exceeding the target.

Strengthening the prestige and position of the largest state-owned commercial bank in 2017 that continued to mark the Agribank's drives in promoting international cooperation and external relations to enhance its prestige and prestige in the direction of modern commercial banks. The Agribank continued to be an active and positive member in bilateral and multilateral relations at major international forums, meetings, contacts and work of senior leaders of the Party, the State and the Government of Vietnam, thereby creating more opportunities for the Agribank to contact, understand, strengthen the connection, ready to integrate, which creating the major premise to further expand the market abroad. During the year, the Agribank signed 109 Memorandums of Understanding (MoU) with foreign partners and cooperation agreements with many big domestic partners, creating opportunities for business opportunities and supply operating surplus SPDV. The Agribank received and deployed 04 new banking projects with a total value of USD 325 million. By the end of 2017, the Agribankwas implementing 26 international credit projects with the total limit equivalent to VND 13,000 billion; 147 banking projects serving with a total value of $ 7.3billion.

With the determination of consensus, efforts to overcome all difficulties and challenges from the Board of Directors with nearly 40,000 officers and employees in more than 2,300 branches and transaction offices throughout the system in synchronous implementation of many solutions. Accordingly, the Agribank continues to maintain the leading position of commercial banks in the ranking of 500 largest enterprises charts in Vietnam in 2017 (VNR500), ranking sixth among the 500 largest enterprises in Vietnam and ranking first among the Vietnam Commercial Bank according to VNR 500 charts based on the criteria of revenue, profit, asset size, human resources and communication prestige of enterprises. The Agribank has won a lot of other awards in 2017 such as: Top 10 prestigious Vietnamese commercial banks, Sao Khue Award, Bank Award for Community ... Image and prestige of Agribank brand continue to appear, make appearance together with events, meaningful programs of national and international significance, which contribute to affirmthe Agribank’ brand and position - Agribank for “ Tam nong”, Agribank– Retailagribank,Agribank - Agribank for Community and willing move yourself to the trend of integration.

Chairman of Agribank Board of Members, Trinh Ngoc Khanh said that in 2018, the Agribank’s whole system will strive to complete its tasks with the main objective of continuing to strengthen, stabilize and improve the quality of business trading operations; resolutely solve shortcomings and problems; continue to maintain the key role in money market, credit "Tam nong"; restore the status of operations in urban areas; control credit growth in a safe and effective manner.

Besides, the Agribank focuses on diversifying its products and services on the basis of modern technology; improving financial capacity, ensuring operational safety in accordance with Vietnamese and international regulations; drastically implementing the Agribank's equitization plan according to Decision No. 58 / QĐ-TTg dated 28/12/2016 of the Prime Minister…

Business results in the first half of 2018 with a steady increase for all eight SPDV groups with a service fee increase to 25.6% over the same period that continuously shows the efforts and determination of the Agribank’s whole system. Overcoming many difficulties and challenges, the achievements have proved that the Agribank'sbusiness operation has really entered a period of recovery and growth, ready to be equitized according to the set schedule.

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