ACB to become a financial conglomerate, says chairman Tran Hung Huy

Asia Commercial Bank (ACB) has approved plans to establish a non-life insurance company as part of a strategy to transform the bank into an efficient financial conglomerate with its own ecosystem, where non-life insurance is a key component.

ACB approves non-life insurance company with VND 500 billion charter capital

At the annual general meeting on April 9, ACB approved the establishment of a non-life insurance company with initial charter capital of VND 500 billion.

ACB’s two subsidiaries will hold the stake: ACBA (Debt Management and Asset Recovery) with 91% and ACBS (ACB Securities) with 9%.

The insurance company is expected to launch this year, operating with an Insurtech approach—distribution via a digital platform—and serving ACB’s existing client base within the bank’s ecosystem.

Insurance cross-selling to recover; segment expected to exceed VND 1,000 billion in revenue

ACB’s CEO To Tien Phat said the insurance market faced difficulties over the past two years, leading to a decline in insurance cross-selling revenue at ACB by about 20%. He noted that Q1 showed a clear recovery, with cross-sell revenue up 33% year-on-year.

He added that the insurance segment is expected to improve and contribute more than VND 1,000 billion in revenue for the year.

Conglomerate strategy C1425 and role of ACBS

ACB chairman Tran Hung Huy emphasized the goal of building ACB into a financial conglomerate, referencing the code-named strategy C1425.

Under this strategy, Huy said ACBS is expected to play a key role, as the securities and wealth management segments are projected to deliver strong profitability. ACBS is positioned as a hub to develop products and services for customers across the group’s ecosystem, creating a “virtuous cycle” of value.

2025 performance shortfall and 2026 provisioning acceleration

Huy said ACB did not meet its business targets last year. He attributed the challenge to signs of a difficult economy as the bank approached the end of 2025, when it was on track to meet its profit plan. He cited an overheated real estate sector and a sharp increase in lending to that segment.

As a result, ACB leadership projected that policy directions could change in 2026 and decided to accelerate provisioning and implement bold measures to sustain growth.

Huy said the bank would be willing to sacrifice short-term profits by maintaining competitive interest rates to support customers and protect market share, while significantly increasing provisioning to strengthen resilience to risks in 2026.

Credit shift from real estate; focus on AI and technology investment

Huy added that, as forecasted, from early 2026 the State Bank of Vietnam took decisive steps to redirect credit away from real estate toward prioritized sectors.

ACB leadership also noted that artificial intelligence (AI), particularly AI Agents, is strongly affecting banking. The bank plans to prioritize investment in data platforms and technology over the next 3–5 years to support personalization of the customer experience.

Targets for corporate lending and FDI; Q1 2026 results

ACB said corporate lending and FDI will continue to be promoted, increasing their contribution to revenue and profit from the current 5–7% to a higher share.

In Q1 2026, ACB reported consolidated net profit of about VNĐ 5,400 billion, up 17% year-on-year. Credit growth rose above 3%. The non-performing loan ratio remained low at around 0.97%. The capital adequacy ratio (CAR) was about 11%, above the minimum 8% requirement.

2026 outlook: pretax profit, loan growth, and dividend plan

For 2026, ACB targets pretax profit of VNĐ 22,340 billion, up 14%. The loan growth target is 16%, lower than last year, while interest income is expected to improve clearly and the non-performing loan ratio is expected to remain low.

The bank plans a total dividend payout of 20%, comprising 13% in stock and 7% in cash. The cash dividend is expected to be paid from early June, with stock dividends implemented about two weeks later.