Commercial bank (Ngân hàng thương mại): Analysis of some indicators in the financial statements of Asia Commercial Joint Stock Bank (ACB) Phân tích chỉ tiêu tài chính ACB 2021

NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS

Analysis of some indicators in the financial
statements of Asia Commercial Joint Stock Bank

Group: 5
Class: Investment Economics K61
Lecturer: Tran Phuoc Huy
Subject: Commercial Bank
Members: Le Hoang
Nguyen Lan Chi
Nguyen Phuong Ha
Nguyen Thi Kim Anh
Le Thi Thu Anh

Ha Noi, 2021

TABLE OF CONTENTS


News brief

I.

1. Dragon Capital sub-fund continues to divest from ACB

Before the transaction, the subsidiary fund of Dragon Capital owned nearly
4.93 million ACB shares and registered to sell 900,000 ACB shares, resulting in the
sale of 894,800 shares. This fund announced that they didn’t sell out all the shares
registered because of the fluctuating market price.

Dragon Capital Group is currently a shareholder of ACB through its holdings
of DC Developing Markets Strategies Public Limited Company, Samsung Vietnam
Securities Master Investment Trust (SMITH) and Norges Bank.
ACB stock price movement from the beginning of 2021 to the session 22/06/2021

A

2.

CB: Decision of the Board of Directors on the
increase of charter capital for ACBS

2


ACB

Securities

CoLtd.

's

charter

capital

was

increased

by

1,500,000,000,000,000 (one thousand five hundred billion Vietnamese dong) on
June 8, 2021; bringing the total new charter capital to 3,000,000,000,000 (three
hundred trillion dong) in the form of equity contribution.
Implementation time: in 2021 after being approved by the State Securities
Commission.
Form of capital increase: Owners of Asia Commercial Joint Stock Bank
(ACB) contribute more capital.
3. ACB pays a stock dividend

Recently, on June 16, 2021, ACB increased its capital by issuing 540 million
shares to pay dividends, equivalent to 25%. After the issuance, the total charter
capital of ACB will increase to more than 27,000 billion dongs.
The bank said that the increase in charter capital is to ensure safe ratios for the
bank, increase medium and long-term capital for credit extension activities, invest in
government bonds, and add capital to renovate, invest in strategic projects in the
coming years.
•

Closing the trading session on May 31, 2021,
ACB's stock price stood at VND 41,400/share,
up 47% compared to the beginning of the year.
In the first quarter of 2021, ACB's pre-tax profit

reached VND3,104 billion, up 61% over the same
period last year. As of March 31, 2021, ACB's total
assets reached VND 449,515 billion, up 1.1%
compared to the beginning of the year. Outstanding

loans to customers increased by 4,1% to 324,311 billion dongs.

3


4. ACB's credit "quota" will be extended to a maximum of 15%

June 25, 2021, ACB Bank - ACB Commercial Joint Stock Bank is likely to be
extended credit room by the State Bank in 2021 to 15%. ACB has a credit quota
granted by the State Bank for the whole year of 9.5%, but at this point, the credit
room is tight, so the bank is proposing to increase it to 15%. Along with private
banks such as VPB, TCB, and MBB, private bank ACB has achieved phenomenal
credit growth in both revenue and profit despite the COVID-19 pandemic. That is
why the State Bank of Vietnam provides joint-stock banks with the most credit
space.

5.
5.
5.

VN 30 Basket: Add ACB, SAB, GVR
On July 19, the Ho Chi Minh City Stock Exchange (HOSE) announced the
list of component stocks of the VN30 basket for the July 2021 period. The list takes
effect on August 2, 2021.
According to this portfolio reversal, the VN30 basket will add three stocks:
ACB, SAB, GVR, and exclude TCH, SBT, and REE.
6. ACB successfully offered 2,500 billion dongs of bonds

Asia Commercial Joint Stock Bank (ACB) has just announced a successful
sale of 2,500 bonds, equivalent to VND2,500 billion, to a domestic institution with a

term of 3 years, due on July 15, 2024.

4


ACB's bonds are non-convertible bonds without warrants, are not secondary
debts, and are unsecured. The bond interest rate is 3.5%/year, paid periodically once
a year.
Previously, from May 6 to July 8, ACB issued 7 other bond lots with a total
value of 11,700 billion dongs. Accumulated from the beginning of the year until
now, this bank has mobilized 14,200 billion dongs of bonds.

II.

General introduction to Asia Commercial Joint Stock Bank.
ACB (Asia Commercial Joint Stock Bank) started its operation in 1993. ACB

has 28 years of development and continuous growth to become one of the leading
joint-stock commercial banks.
On October 31, 2006, ACB was listed on the Hanoi Stock Exchange. At the
Annual General Meeting of Shareholders (AGM) 2020, ACB shareholders agreed to
change the listing floor from HNX to HOSE. More than 2.16 billion shares of Asia
Commercial Joint Stock Bank (ACB) were transferred following the exchange, and
they have been formally trading on HOSE since December 9, 2020.
ACB aims to provide financial products and services to individual and
corporate customers through traditional transaction channels, while constantly
developing the branch system to help customers transact quickly and easily. through
electronic channels (ACB online, ACB Mobile Apps, ACB Business Apps), selfservice channels (ATM, CDM), associated with payment intermediary services (ewallet: Shopee Pay).
The main products and services of the bank are:
•

Mobilizing capital (receiving deposits from customers) in Vietnam dong,

foreign currency and gold
• Use of funds (credit, investment, joint venture) in Vietnam dong, foreign
currency and gold

5


•

Intermediary services (making domestic and foreign payments, performing
treasury services, remittances and quick money transfers, life insurance

through banks
• Trading foreign currency and gold.
• Issuance and payment of credit and debit cards
In the 5-year development strategy for the period of 2019 - 2024, ACB sets a
vision to be the leading retail bank, with high gross income growth, the best
customer experience, and the highest profit margins, on equity capital (ROE) of
20%/year or more, focusing on target segments in individual customers, small and
medium enterprises, and selectively developing large enterprise customers.
Some prestigious awards achieved by ACB in 2020.
•
•
•

Most Recommended Retail Bank in VN - The Asian Banker
10th Ranking in Asia Pacific - The Asian Banker

Best Customer Service Provider Asia 2020 - International Banker (UK)

From
2020 to the end of the second quarter of 2021, ACB's P/E ratio is lower than the
average banking industry in Vietnam (13,01) according to a report published in May
2021.
EPS ratio is stable and increases quarterly from 2021 to the end of the second
quarter of 2021. => The bank's business is effective despite the impact of the
pandemic.
6


III.

Analysis of financial indicators of Asia Commercial Joint
Stock Bank.
1. Capital mobilization growth rate

In total capital, mobilized capital is a very important indicator for the bank's
operations. If the bank mobilizes more capital, the unit is able to expand the loan
scale because the bank is a borrower to lend. Therefore, the unit must regularly
monitor the scale and structure of mobilized capital by term, by object of
mobilization (economic organizations, individuals), by currency (VND and foreign
currencies), etc. the basis for determining the structure of each component in the
mobilized capital. Thereby, it is possible to consider and evaluate mobilized capital
sources to take reasonable adjustment measures. At the same time, to understand the
growth rate of mobilized capital, the following criteria can be calculated:
Deposit growth rate (%) = (Balance of mobilized capital this period / Balance of
mobilized capital in the previous period – 1) x 100
This is the basis for assessing the bank's ability to attract capital from

customers to expand its business activities as well as its reputation. The higher the
growth in mobilized capital, proves that during the period the unit has applied many
measures to increase capital mobilization capacity, or because the bank's reputation
has been enhanced in the market, the unit has created a traditional customer portfolio
system. From the mobilized capital, it will be a condition for the bank to expand
credit activities and other activities that are income-generating activities for the
bank.
Figures from the financial statements:

7


Balance at the beginning of the

Time period

Charter capital

31/12/2020

21,615,585

30/06/2021

21,615,585

year
Quarter-end balance

Capital mobilization growth rate (%): = ( – 1) x 100 = 0 %

ACB's capital mobilization growth rate is 0%. Thus, in the second quarter of
2021, the bank did not raise additional charter capital.
2. CASA rate - demand deposit rate

CASA stands for Current Account Savings Account, also known as demand
deposits. When customers go to the bank to open an account (current account) to
deposit/withdraw money, transfer money, receive salary, open ATM card, etc., you
have contributed to increase the CASA rate for the bank.
The higher the CASA ratio, the cheaper capital the bank can mobilize, thereby
helping the bank improve its net interest income (NIM) ratio and have more
competitive conditions on lending interest rates in the market. On the other hand,
this ratio also indirectly reflects the effectiveness of a commercial bank's policies on
product development, utility services, customer base creation, etc.
CASA = (Demand deposit + Margin deposit)/ (Total deposit + Priced paper
issuance)

8


Meaning: The Casa Index is the ratio of demand deposits at banks. A high
Casa index means a lower cost of capital. When assessing a bank's Casa index, it is
necessary to compare it with other banks and the industry average. A high Casa
index will help the bank improve the NIM ratio and have more competitive
conditions for lending interest rates in the market. On the other hand, the higher the
Casa index reflects the development background of the bank's services, as many
other value-added products and services are associated with customers' demand
deposit accounts.
Figures from the financial statements:
Subject

30/6/2021

31/12/2020

Demand deposit

Credit institutions

86,993

51,840

Demand deposit

Customer

77,007,647

74,064,578

Margin deposit

Customer

1,645,716

1,774,982

27,504,000

22,107,000

Issuing valuable papers
Total deposit

Credit institutions

27,085,956

23,875,242

Total deposit

Customer

358,474,148

353,195,838

CASA rate 31/12/2020: = x 100
= 19.01 %
CASA rate 30/06/2021: = x 100
= 19.06 %
Thus, CASA of Asia Commercial Bank has increased by 0.05% in the second
quarter of 2021 compared to 2020. The CASA level of the second quarter of 2021 is
19.06%, which is a fairly sustainable CASA level in the banking industry. Because
ACB has an average CASA, it shows that this bank can mobilize good capital, so the
cost of the bank will also be lower than other banks in the same industry.
9

3. Analysis of the bank's NIM

Net interest margin (NIM) is a measurement comparing the net interest
income a financial firm generates from credit products like loans and mortgages,
with the outgoing interest it pays holders of savings accounts and certificates of
deposit (CDs).
Expressed as a percentage, the NIM is a profitability indicator that
approximates the likelihood of a bank or investment firm thriving over the long haul.
This

metric

helps

prospective

investors determine whether or not to invest
in a given financial services firm by
providing visibility into the profitability of
their interest income versus their interest
expenses.

NIM = Net interest income / Profitable assets
Profit in the first 6 months of 2021 grew strongly thanks to NIM expansion.
ACB recorded pre-tax profit of VND6,353 billion, with the main contribution
coming from a sharp drop in deposit interest, helping NIM's net profit margin
expand by 0.8% since the beginning of 2020
ACB's high net interest income margin (NIM) is due to: the bank continues to
increase the proportion of retail lending with high profit margin and the bank's

strategy to increase CASA ratio.

10


This ratio is very important when investors want to invest in a certain bank
stock. The higher the NIM, the better the bank's profitability.
4. Indicators reflecting credit situation

Analysis of credit situation at Asia Commercial Joint Stock Bank (ACB)
Credit is the relationship between a borrower and a lender. In which, the lender has
the task of transferring the right to use the loaned money or goods to the borrower
within a certain period of time. The borrower is obligated to pay the borrowed
amount or goods in full when due, with or without interest.
Bank credit is a credit relationship between banks, credit institutions and
businesses or individuals (borrowers). In which, the bank or credit institution will
transfer the property to the borrower for use within a certain period of time, when
due, the borrower must repay both principal and interest to the credit institution.
Credit activities are the current and future income-generating activities of the
bank, an important indicator and usually account for the largest proportion of total
assets.
a. Credit growth analysis

Credit growth rate (%) = (Credit outstanding balance of this period / Loan
outstanding balance of the previous period -1) x100
Credit growth is the percentage increase or decrease in the credit outstanding
balance when compared to a point in time in the past.

Time period

Credit outstanding balance (million VND)

Credit growth rate (%)

11


Q 1.2020

272,135,299

2.24

Q 2.2020

280,990,276

3.25

Q 3.2020

294,472,526

4.79

Q 4.2020

308,528,625

4.77

Q 1.2021

320,754,992

3.96

Q 2.2021

336,827,639

5.01

Comparison table of credit growth between quarters

Based on the analysis in the table above, ACB's credit balance over the quarters
and from 2020 to 2021 tends to increase rapidly and evenly with good quality
despite the negative impact of the Covid-19 pandemic.
Credit growth in 2020 reached

15.9%,

1% higher than planned. In the
first half of 2021, credit growth
will reach 9.2% with a customer
loan scale of approximately
VND 337 trillion, faster than
the growth rate of 5.9% of the
whole industry.
Chart: Credit scale and credit growth rate

With the advantage of abundant equity from retained earnings and early
response to the State Bank's call to reduce interest rates. Along with that,
outstanding loan growth in the first half of 2021 was mainly due to individual
customers and small and medium enterprises (SMEs), these two customer groups

12


accounted for 93% of ACB's outstanding loans at the end of 2020. Partly due to the
impact of the pandemic, banks simultaneously reduced lending interest rates, which
is also the reason that directly affects the increase in size and credit growth rate at
Asia Commercial Joint Stock Bank (ACB)
ACB continues to not hold corporate bonds in its credit portfolio and
maintains high lending standards.
b. Analysis Credit outstanding balance compared to Mobilized capital

Ratio of credit outstanding balance to mobilized capital = (Credit outstanding
balance/ Mobilized capital) x 100
The ratio of credit outstanding balance compared to mobilized capital reflects
the effective use of capital of the bank. The higher this ratio, the greater the liquidity
risk of the bank.

Comparison table of credit outstanding balance to mobilized capital of ACB
Unit: Million VND

Time

Credit

Mobiliz

Credit

perio

outstandin

ed

outstanding

13


d

g balance

capital

balance/
Mobilized
capital (%)

Q1.2 272,135,299 349,076,
020

77.96

040

Q2.2 280,990,276 356,008,
020

78.93

134

Q3.2 294,472,526 375,678,
020

78.41

649

Q4.2 308,528,625 399,120,
020

77.30

777

Q1.2 326,209,372 392,937,
021

83.02

301

Q2.2 336,827,639 413,015,
021

81.55

423

Through the performance evaluation index, the lending situation of Asia
Commercial Joint Stock Bank has gradually become more effective over time. The
ratio of outstanding loans to mobilized capital is always over 77%, especially in the
first half of 2021, it has improved significantly when it is always over 81%. This
shows that ACB has used most of the mobilized capital to lend, promoting the
efficiency of mobilized capital. However, with the increase in this ratio, the bank
faces additional liquidity risk. But with this ratio, ACB still ensures to have
appropriate provisions.
The table also reflects that ACB has always met enough mobilized capital for
customers' borrowing needs.

14


c. Analysis of overdue debt ratio on total loan outstanding balance.

Overdue debt ratio (%) = (Overdue debt/ Total loan outstanding balance) x 100
Determining the overdue debt ratio is a very important factor in assessing the
credit quality of a bank, to reflect loans with poor repayment ability.
If this ratio is low, it means that the business of the entity is good, most of the
credits of the business are profitable and recoverable. On the contrary, if this ratio is
high, banks need to take measures to control overdue debts, limit the risk of losing
capital due to overdue debts.

Unit: Million VND

Numb

Criteria

31.12.2020

30.6.2021

1

Overdue debt

2,416,425

3,194,899

2

Total loan

316,888,754

348,955,320

0.76%

0.92%

er

outstanding balance
3

Overdue debt ratio
(%)

From this table, it can be seen that the ratio of overdue debt to total
outstanding loans of ACB is kept at less than 1%, this is a positive sign that the debt
collection at the bank is being done well. However, compared to 2020, this ratio has
increased by 0.16% in the first half of 2021, so the bank needs more complete
solutions to reduce the amount of overdue debt to the lowest possible level.
d. Analysis of Allowance for Credit Losses

Allowance for credit losses ratio (%) = (Allowance for credit losses fund/ Total
loan outstanding balance) x 100
15


Allowance for credit losses is an amount set aside to provide for possible
losses due to customers of a credit institution not performing their obligations as
committed.
Setting up allowance for credit losses fund is an annual activity, to evaluate
how the bank's Allowance for credit losses ratio is, in order to forecast a reasonable
rate for the next period.
Unit: million VND

Number

Criteria

31.12.2020

30.6.2021

1

Allowance for credit losses fund

2,950,364

4,839,861

2

Total loan outstanding balance

316,888,754

348,955,320

3

Allowance for credit losses ratio (%)

0.93%

1.39%

We can see that the bank's credit growth has a positive impact on the
allowance for credit losses. As the credit outstanding balance increases, the
allowance for credit losses ratio also increases.
In 2020, this ratio is 0.93%, which is quite low, showing that the bank has
quite well managed the loan amount, and has limited the losses that may occur due
to the customers of the credit institution not performing the loan. obligations under
the commitment.
In the first half of 2021, with good credit growth, the risk allowance for credit
losses ratio also increased above 1%, specifically 1.39%. However, this is still the
level of the bank's risk ratio that can be controlled and is still in good standing. It
shows that Asia Commercial Joint Stock Bank effectively uses credit capital and
manages the ability of customers to collect debts.
e. Analysis of net overdue debt ratio

16


Net overdue debt ratio (%) = [(Overdue debt - Provision expense for credit
risk)/ (Total loan outstanding balance - Provision expense for credit risk)] x100
Dealing with overdue debt, banks regularly set up allowance for credit losses,
to assess the ability to cover overdue debts with the allowance for credit losses fund
through the net overdue debt ratio.
Unit: million VND

Number

Criteria

31.12.2020

30.6.2021

1

Overdue debt

2,416,425

3,194,899

2

Provision expense for credit risk

650,404

1,992,006

3

Total loan outstanding balance

316,888,754

348,955,320

4

Net overdue debt ratio

0.56%

0.35%

5

Overdue debt ratio

0.76%

0.92%

In principle, the net overdue debt ratio is always less than the overdue debt
ratio.
On the other hand, the lower it is, the higher the ability to cover the loss, so
the smaller the ratio the better.
From the table above, we can see that Asia Commercial Joint Stock Bank has
a net overdue debt ratio smaller than the standard overdue debt ratio. In the first half
of 2021, this ratio has decreased by 0.21%, showing that ACB has good plans to
cover losses, maintaining company operations at a stable level. This is a positive
signal.
5. The ratio of profitable assets to the source of capital payable

A loan outstanding balance is the amount of money that a customer owes from
a bank loan using a credit card, which is the main source of the bank's income.
17


Whereas deposits are the amount of money banks raise from customers and are
included as sources of fundings by the Bank.

The ratio of profitable assets to the source of capital payable helps managers
come up with appropriate policies to manage and maintain a high level of
profitability and use assets appropriately.
Unit: million VND

Time period

Loan Outstanding
balance

Deposits

The ratio of profitable assets to
the source of capital payable

31/12/2020

308,528,625

353,195,838

87.35%

30/06/2021

336,827,639

358,474,148

93.96%

According to ACB's consolidated financial report for the second quarter, it
was found that the profitability rate increased by 7.62%, reaching 97.43% at the end
of the second quarter. This shows that most of the capital raised by banks is
profitable investment units such as buying business capital securities, investing in
joint venture companies such as Asian BankIng Protection Services Joint Stock
Company (ACBD) and ACB-SJC Jeweling Saigon Joint Stock Company. In
addition, ACB also implemented an exclusive partnership to distribute life insurance
products for 15 years with Sun Life Vietnam Life Insurance Limited Company with
VND 8,500 billion in quarterly in advance. This is considered a wise step because
ACB always has the top insurance sales among banks.
Most customer loans are short-term loans with interest rates ranging from
9.8% to 15% a year with a variety of services. ACB's outstanding customer loans
increased mainly due to the growth of personal, small and medium-sized enterprises
to optimize profitability, with higher profitability.

18


ACB's raised capital tended to increase, with foreign currency gaining up
1.3% in the second quarter.
With being voted as one of the most prestigious banks in Vietnam in 2020, the
number of capital mobilized also has growth momentum and is expected to increase
sharply in the coming quarters due to the economic recovery in the context of
pushing back Covid-19. These are positive signals for increasing capital as well as
income sources for banks.
6. Fixed assets status

Fixed assets are the initial physical facilities necessary for the bank's
operations. The service quality of the unit is more likely determined by its

equipment

and

technological

infrastructure. Thus,

in

order

to

enhance

competitiveness in the market, units are forced to regularly monitor its status to take
measures to improve and upgrade timely. This is also an item that accounts for a
large proportion of the total assets of the bank, fixed assets are initially assessed and
can be re-evaluated during use. Original cost and carrying value are two important
bases to evaluate fixed assets in any case. That is the reason that the accounting
entries must be ensured to reflect all three criteria of the value of fixed assets which
are original cost, depreciation and carrying value.
The reflection of the operating capacity of fixed assets is usually shown as
follows, through this ratio, fixed assets can be evaluated for their value and
condition:
Fixed assets status (%) = (Carrying value of Fixed assets/Original cost) x 100
Excerpts from the interim consolidated financial statements:
A. ASSETS

Fixed assets
19


Tangible fixed assets
Tangible fixed assets costs
Depreciation of tangible fixed assets
Intangible fixed assets
Intangible fixed assets costs
Depreciation of intangible fixed assets
We have the following formula:
Carrying value of Fixed assets = Fixed assets original cost - Depreciation of fixed
assets
=> Tangible fixed assets status = x 100 = 53.38%
=> Intangible fixed assets status = x 100 = 69.74%
From both above indicators, it can be seen that the status of fixed assets of
ACB is still new, the ratio compared to the end of 2020 is approximately 2%
different.
7. Income and expense criteria

Ratio of pre-tax profit to total income = (profit before tax / Total income) x 100
Ratio of pre-tax profit to operating expenditure = (Profit before tax / Operating
expenditure) x 100
Unit: million VND

Number

Criteria

30/6/2020

30/6/2021

1

Profit before taxes

3,819,587

6,352,753

2

operating expenditure

4,128,541

3,557,835

20


3

Total income

15,463,277 16,968,263

4

Ratio of pre-tax profit to total income

24.7%

37.44%

5

Ratio of pre-tax profit to operating expenditure

92.52%

178.56%

ACB's income targets for both periods were low due to the impact of the
pandemic. However, the income of the first six months of 2021 has tended to be
higher than that of 2020. Because the government can control the epidemic situation
and have appropriate support policies. ACB also has plans to support loans with
preferential interest rates for private customers, families, and small businesses.
ACB's expense target for business activities in the first six months of 2020 is
lower than in 2021, showing that in 2020 the bank was forced to reduce costs to
increase the bank's income. The high expense for the first six months of 2021 shows
that the bank's business is not effective due to the effects of social distancing and the
bank has to maintain fees while unable to open transaction activities.
8. Profitability analysis criteria
a. Net profit margin ratio

Net Marginal Interest Income Ratio: This ratio measures the underlying
profitability of an entity's lending activities in terms of its average yielding assets.
The average indicator is the average between the value at the beginning of the

year and the value at the end of the year.
This is a factor that shows the ability to generate profits in the operation of the
currency trading sector. The higher this ratio, the better it is for the bank because the
rate of interest generated on the profitable assets of the unit is high.
Net Margin (%) = [(Interest Income – Interest Expense)/Average Profitable
Assets] x 100

21


Figures from the financial statements:
Unit: million VND

30/06/2021

31/12/2020

Interest Income

16,968,263

15,463,277

Interest expense

8,931,887

7,338,304

Fixed assets

3,703,279

3,782,753

Credit asset

6,787,651

6,893,097

Total assets

471,275,438

444,530,104

Average Profitable Assets
=
= 447,319,381
Net Margin Interest Income Ratio (%):
= x 100
= 2.16%
ACB's net profit margin was at 2.16% in the accounting period ending in the
second quarter of 2021. This is the average net profit margin compared to other
banks in the banking sector.
b. Net Marginal Non-Interest Income Ratio

Net Marginal Non-Earnings Ratio: This ratio measures the profitability of the
entity's non-credit products relative to its average return on assets.

22


If this ratio is high, it means that the business of non-credit products brings
high efficiency to the unit. And vice versa. Practical import and export course in
HCMC.
Net Marginal Non-Interest Income Ratio (%) = [(Non-Interest Income – NonInterest Expense)/ Average Profitable Assets] x 100
Figures from the financial statements:
Unit: million VND

30.06.2021

31.12.2020

Profit from forex trading

427,664

295,694

Profits from buying and selling investment securities

93,648

662,178

Profits from other business activities

28,035

102,499

Income from capital contribution

6,542

5,646

Tangible asset

3,703,279

3,782,753

Credit asset

6,787,651

6,893,097

Total assets

471,275,438

444,530,104

Average Profitable Assets
=
= 447,319,381

Net Marginal Non-Interest Income Ratio (%):
= x 100
= 0.12%
ACB's net non-interest income ratio reached 0.12% at the end of the second
quarter of 2021, which is a low level. It shows that ACB does not focus on the noncredit sector. Or the bank is not thriving from the business of non-credit products.
23


c. Average interest rate difference

This ratio reflects the efficiency of the bank's intermediary activities in the
process of capital mobilization and lending.
Average Interest Rate Spread = (Interest Income/Average Earning Assets) –
(Earning Expenses/Average Capital Interest Payable) x 100
This ratio represents the difference in interest earned from the uses of capital
after deducting the cost of paying interest on that capital. The higher the interest rate
spread, the higher the profit of the unit.
Figures from the financial statements:

Unit: million VND

30/06/2021

31/12/2020

Interest Income

16,968,263

15,463,277

Interest expense

8,931,887

7,338,304

Tangible assets

3,703,279

3,782,753

Credit asset

6,787,651

6,893,097

Total assets

471,275,438

444,530,104

Account payable

430,895,193

409,081,941

Average Profitable Assets
=
24


= 447,319,381
Average Capital Interest Payable:
=
= 419,988,567
Average Interest Rate Spread:
= ( - ) x 100
= 2.0%
The average interest rate of ACB reached 2.0% at the end of the second
quarter of 2021, the average level in the banking sector. The difference in interest
earned from the use of capital after deducting interest payments for that capital of
ACB reached a difference of 2.0%, which proves that the bank is using capital
effectively and sustainably.
d. Interest difference from credit activities

Interest spread from credit activities: This ratio reflects the efficiency of the
bank's credit activities.
Interest difference from credit activities = (Loan interest collection / Total
average outstanding balance) – (Interest payment / Average Source of capital to
pay interest) x 100
This indicator shows that the higher the interest rate differential, the higher
the profit of the unit. Thereby considering which form should increase to bring profit
to the bank.
Figures from the financial statements:
Unit: million VND

Earning loan interest

30/06/2021

31/12/2020

14,884,436

13,447,892

25