The Asia Commercial Bank’s (ACB) share price is expected to jump this year, as the lender will move its listing from the Hanoi Stock Exchange to the Hochiminh Stock Exchange, following approval from its shareholders.
And after being traded on the HCM City market for six months, the bank stock is expected to be added to indexes such as VN30, VNDiamond, VNFIN Select and VNFIN Lead, stated Bao Viet Securities Company (BVSC) in a recent report.
Amid the ongoing Covid-19 pandemic, ACB is at a higher advantage than other listed banks as it focuses on credit for individuals and families, not vulnerable sectors such as construction, real estate, tourism, hotels and transport.
This year, ACB targets to gain over VND7.6 trillion in pre-tax profit, up a slight 2 percent compared with 2019, while credit is expected to rise 11.75 percent and mobilisation may increase 12%. The bank would strive to maintain the bad debt ratio under 2%.
Despite the modest outlook for 2020, BVSC said, ACB might make a strong recovery in 2021, buoyed by the listing on the HCM City market. Further, an exclusive bancassurance deal, expected to be signed this year, will fetch an abnormal profit and the divestment out of the ACB Securities Company will help boost the share price.
In the first five months of this year, ACB earned some VND3.5 trillion in consolidated pre-tax profit, meeting 45.8 percent of this year’s target, with the credit growth rate pegged at 4%.
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