The State Bank of Vietnam published an overview of Vietnam Bank for Agriculture and Rural Development (Agribank)’s 2020–2025 results, centred on its 2021–2025 restructuring plan linked to non-performing loan (NPL) resolution that was approved by the central bank, and set out priority actions for the next phase. The update highlights improved asset quality, strengthened governance and risk controls, and progress on bank-wide digital transformation, alongside continued delivery of government and central bank-directed policy lending programmes. Reported indicators include an on-balance-sheet NPL ratio of 1.26% as of 30 June 2025, restructured loans under Circular 02 at 1.58%, and full resolution of COVID-19-related restructured exposures, alongside more than 215 NPL accounts sold under market-based mechanisms. Safety and funding metrics cited include an LDR of about 83%, a standalone capital adequacy ratio of 11.19%, and a short-term funding used for medium and long-term lending ratio of 22.74%, as well as average annual pre-tax profit growth of 21.6% over 2021–2024 and average funding growth of 8.69% per year, with CASA rising to 12.83%. On digitalisation, Agribank reports completing 26 of 51 key tasks by mid-2025, deploying a new-generation core banking platform, Agribank Digital, and AI and big data use cases, and expanding an Agribank Plus ecosystem with more than 150 features that it says digitises about 95% of routine transactions, supported by investments including hybrid cloud, real-time payments, open banking APIs and a Payment Hub, and information security aligned with ISO/IEC 27001. Priority actions outlined include completing the 2021–2025 restructuring programme, developing and implementing a 2026–2030 business strategy under State Bank of Vietnam direction, continuing NPL recovery and investment restructuring, and preparing for Agribank’s equitisation under the plan and roadmap approved by competent authorities. The roadmap also emphasises expanding credit and transaction services for private sector borrowers, especially small and medium-sized enterprises, accelerating digital transformation and workforce development for 2025–2030, streamlining organisational structure and the branch network, and strengthening internal inspection, supervision and internal audit with stricter accountability for credit-related breaches.
State Bank of Vietnam 2025-08-01
State Bank of Vietnam publishes Agribank restructuring update and next-step priorities including preparation for equitisation
The State Bank of Vietnam reviewed Agribank's 2020–2025 performance, highlighting improved asset quality, governance, and digital transformation. Key metrics include an NPL ratio of 1.26% and a capital adequacy ratio of 11.19%. Priority actions for 2026–2030 focus on completing restructuring, enhancing digital transformation, and preparing for equitisation.