ACB profit flat as expenses, bad debt provision jump

By Quynh Trang October 25, 2021 | 11:20 pm PT

An ACB branch in Nam Tu Liem District, Hanoi. Photo acquired by VnExpress

Asia Commercial Joint Stock Bank said reported flat profits of VND2.6 trillion ($114.09 million) for Q3, as operating expenses and provision for bad debts rose sharply.

Expenses rose by 30 percent over the same period last year to more than VND2.25 trillion while provisions quadrupled to VND820 billion.

But profits for the first nine months of the year surged 40 percent to VND8.97 trillion amid an all-round increase in interest and fee incomes and foreign currency transaction fees.

Operating expenses remained unchanged but provisions tripled year-on-year to over VND2.8 trillion.

The bank's bad debt ratio has climbed from 0.59 percent at the beginning of the year to 0.84 percent. Doubtful debts, which are overdue from 10 to less than 30 days, have tripled to more than VND2.4 trillion.

Loans and deposits are up 8 percent and 4 percent for the year.

The bank’s total assets rose by 8 percent to VND479.3 trillion.