Report Finance Audited 2018 of Asia Commercial Joint Stock Bank (ACB) shows many notable points: profit on equity assets skyrocketed; while bad debt decreased and Income from other activities increased dramatically.
Accordingly, profit after tax increased about 2-5 times to more than 5,1 trillion VND.
The reason for the profit after tax of ACB of Mr. Tran Hung Huy’s family, a young businessman who takes over for his father, Mr. Tran Mong Hung, partly thanks to income from activities others increased suddenly from 891 billion in 2017 to nearly 1,815 billion VND.
ACB’s income from other activities increased suddenly because the bank successfully recovered bad debts from the “Group of six companies” and at the same time are also reimbursed for provision costs from this group.
ACB recovers debt from “Group of six companies”
The “group of six companies” mentioned above is the G6 group related to Mr. Nguyen Duc Kien (Bau Kien) in The main case at this bank a few years ago ended with Bau Kien and 7 other people being prosecuted in August 2013, including former ACB Chairman Tran Xuan Gia 3, former member of the Board of Directors Le Vu Ky Pham Trung. Cang Trinh Kim Quang, General Director of ACB, Ly Xuan Hai…
Specifically, according to the financial report in 2018, ACB earned nearly 1,13 trillion VND from the recovery of the “Group of six”. company” after using more than 289 billion VND in risk treatment provisions. In 2018, ACB also refunded provision costs of more than VND 480 billion for receivables from the G6 group.
According to the conclusion of the investigation of the “Bau Kien” case back From 2013 to 2009, through owning capital shares, Mr. Nguyen Duc Kien held control of 6 companies including: B&B Company Thien Nam Company Asia Hanoi Financial Investment Company (ACI – HN) Company Asia Financial Group (ACI) Asia Financial Group Joint Stock Company (AFG) and ACB Hanoi Investment Joint Stock Company (ACBI).
Mr. Nguyen Duc Kien is a contributing shareholder large capital of ACB Bank since 1993. Mr. Kien then held the position of Vice Chairman of the Board of Directors of this bank from 1994 to 2008. During his time working at ACB Bank, Kien elected to participate in the management and operation of the bank. customers with many different positions have influence in directing and deciding many activities business of ACB Bank.
Profits from other activities increased sharply.
Mr. Kien founded many family companies and withdrew his name from the Board of Directors of ACB Bank, but before withdrawing, he also established the Founding Council of the Bank. ACB bank of which I am Vice President, a form of circumvention to avoid legal constraints.
After replacing his father as ACB President, Mr. Tran Hung Huy met Many difficulties, especially the problem of cleaning the asset summary table. Recent regulations, especially Resolution No. 42/2017/QH14 of the National Assembly on piloting bad debt handling and Decision 1058/QD-TTg of the Prime Minister on restructuring credit institutions associated with bad debt in the 2016 period -2020 helped many banks, including ACB, strongly handle bad debts.
In 2017 and 2018, ACB recorded a very large profit growth rate thanks to handling bad debt management.
In April 2018, Mr. Tran Hung Huy continued to be elected Chairman of ACB. However, Mr. Huy’s father is also the founder of ACB Tran Mong Hung and Mr. Tran Trong Kien are no longer on the Board of Directors.
Although ACB has recovered very impressively, like many banks, Other customers: ACB is facing new challenges, including fierce competition not only from traditional competitors that are rapidly increasing in scale such as Techcombank but also from non-traditional competitors.
Mr. Nguyen Duc Kien.
ACB as well as many banks will have to compete with Grab Alipay Amazon… These are all big companies that can create platforms for the business community. while providing useful financial services such as payments…
In the stock market (stock market), selling pressure caused the VN-Index to drop sharply. Many blue-chips dropped sharply such as Vingroup Vinhomes… Positive groups include textiles and rubber.
Some securities companies have cautious views in forecasts.
Mr. Tran Hung Huy.
According to Bao Viet Securities, the short-term uptrend of the market is facing many difficulties before the strong resistance area around 1000 points. The risk of a sharp decline in the market may arise if the index breaks the support zone of 970-980 points. On that basis, BVSC believes that investors should stop new disbursement activities. You can watch the market’s rising rhythms to sell and reduce the portfolio proportion to a safe level. The total portfolio weight may decrease to 35-45% of stocks during this period.
According to Rong Viet, after three unsuccessful attempts to conquer the 1,000 point threshold, psychology Investors became pessimistic and selling forces quickly overwhelmed buying forces. The wave of small-cap stocks emerging in recent sessions is a sign that the market may have reached a short-term peak and there will be a significant correction. Investors should quickly reduce the proportion of stocks in the portfolio to take advantage of technical recovery times to get the best selling price.
Closing trading session on September 8 3 VN-Index decreased 8,78 points to 985,25 points; HNX-Index decreased 0 65 points to 108 22 points. Upcom-Index decreased 0 31 points to 55 94 points. Market liquidity reached 250 million units worth 49 trillion VND.
According toH. Tu
VietnamNet
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