“The positive rating action takes into account the Vietnamese banking system’s enhanced operating environment, with improved economic policymaking from authorities promoting macroeconomic stability and predictability,” Fitch noted in a report released on February 27.
According to Fitch, the Vietnamese Government will support Agribank when necessary as the bank plays an important role in the country’s banking system and is one of the four largest banks in Vietnam by total assets and network.
The positive outlook also reflects Fitch’s views on Vietnam’s improvement in providing support when necessary.
As of December 31, 2017, Agribank had reported a 20% increase in profit to a record VND5.01 trillion (US$220.44 million). The bank’s total assets also hit nearly VND1.2 quadrillion (US$52.8 billion) and its mobilised capital was close to VND1.1 quadrillion (US$48.4 billion). The bank contributed VND1.2 trillion (US$52.8 million) to the State budget.
In 2017, Agribank led commercial banks in the list of the 500 biggest firms in Vietnam and ranked sixth overall on the list.
The bank also won other awards in the year, such as Sao Khue Award, “Bank for Community” Award, and awards granted by JCB International Credit Card Co., Ltd., Bank of New York Mellon, Wells Fargo and JP Morgan.
In the ratings, Fitch also affirmed the long-term IDRs of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at ‘B ’ with a positive outlook.
The viability rating of the two banks was upgraded to ‘B’ from ‘B-’.
Meanwhile, the long-term IDR of Military Commercial Joint Stock Bank (Military Bank) was upgraded to ‘B ’ from ‘B’ with a stable outlook.