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| At a branch of Agribank__Photo: Agribank |
Fitch Ratings has assigned Vietnam Bank for Agriculture and Rural Development (Agribank) a first-time BB Long-Term Foreign-Currency Issuer Default Rating (IDR). The rating outlook is positive.
The ratings are equalised with that of the sovereign and of the highest rating among Vietnamese banks rated by Fitch. BB in Fitch's rating is equivalent to Moody's Ba2 rating. For enhanced transparency, information disclosure and equitization preparation, Agribank actively obtained ratings by two global rating agencies.
Fitch Ratings has emphasized that Agribank plays an important role in Vietnam's banking system and a strategic role in supporting Vietnam's agriculture and rural sectors with about 14 percent of the system deposits and more than 40 percent market share.
Agribank's low deposit concentration with retail deposits consistently making up more than 70 percent of its total, thanks in large part to Agribank's wide distribution network and strong state linkages.
Agribank's improving profitability in recent years is the result of ongoing restructuring efforts to improve productivity and resolve legacy asset-quality issues. In addition, gains on recovery of written-off debts have been a significant and stable source of operating profit for Agribank in recent years. As Agribank continues asset recovery efforts, the proportion is expected to remain substantial.
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| Illustrative image__Photo: Agribank |
As of September 30, 2023, Agribank's total assets reached more than VND 1.93 million billion, capital mobilized from market 1 of more than VND 1.73 million billion, outstanding loans to the economy of more than VND 1.49 million billion, pre-tax profit of VND 21,860 billion. Operational safety ratios meet regulations.
Agribank continues to affirm its brand as a financial institution that is highly appreciated by domestic and international organizations for its prestige and plays a key role in the financial market in Vietnam with many prestigious titles such as: Top 10 Vietnam's largest enterprises, Top 10 Most valuable brands in Vietnam in 2023, Top 10 most prestigious banks in Vietnam in 2023, Excellent information technology systems in the field of Digital Banking, Leadership in contactless penetration growth by JCB, etc.
Agribank is a wholly State-owned bank with the special mandate in supporting and developing Vietnam’s agriculture and rural sectors. Agribank's credit programs have been making very important contributions to poverty reduction, promoting the restructuring of the agricultural sector and building new rural areas of the country, contributing to the breakthrough development of agriculture, affirming its role to the economy.
Agribank is currently the bank with the largest retail system in Vietnam with 2,223 branches and transaction offices; 1 branch in Cambodia; 3 representative offices in the Central, Southern and Southwest regions and more than 3,500 ATMs, including 573 CDMs and Agribank Digital Kiosks. In addition, Agribank has been actively implementing ESG practices, for a green future and sustainable development.- (Nguyet Que)
