Top News

Bac A Commercial Joint Stock Bank (Bac A Bank) is combining digital transformation and retail banking expansion with prudent governance and lending to sectors it considers important to sustainable development.

The strategy was outlined at the bank’s 2026 annual general meeting of shareholders, where executives reviewed its 2025 performance and growth plans.

Sustainable, people-centered development

Sustainable development remains a focus of Bac A Bank’s strategy, with lending directed toward sectors including high-tech agriculture, clean food, medicinal herbs, healthcare and education.

Speaking at the annual general meeting, Thai Huong, vice chairwoman of the Board of Directors and CEO of Bac A Bank, said banks should help capital flow through value chains while supporting businesses pursuing sustainable development.

“A bank must truly act as a midwife for the economy, enabling money to circulate along the value chain, always accompanying and providing credit to enterprises that pursue sustainable development based on Vietnam’s natural resources and Vietnamese intellect combined with the world’s end-to-end technology, toward the true happiness of every individual,” she said.

Beyond lending, Bac A Bank said it provides advisory and business-connection services and supports production models based on closed-loop value chains. The approach is intended to improve capital efficiency while supporting local economies and livelihoods.

The bank is also incorporating environmental, social and governance (ESG) factors into its lending and credit appraisal processes.

It prioritizes projects using high technology, traceability systems, transparent information and quality controls, particularly in sectors linked to public health such as food and medicinal herbs.

According to the bank, applying ESG criteria to credit decisions is intended to improve credit quality and direct capital toward environmentally and socially responsible production.

Bac A Bank is extending this approach to medicinal herbs and biotechnology, focusing on value chains that combine natural resources with science and technology.

Digital banking and retail drive expansion

Alongside sustainable lending, Bac A Bank is accelerating digital transformation and expanding its retail banking operations.

The bank’s 2025 results showed growth in both its customer base and digital channels. Individual customers increased by around 32%, while corporate customers rose more than 20%. Transaction value through digital channels increased by over 70%.

Income from services and guarantees also rose more than 70%, helping the bank diversify revenue beyond traditional lending.

Bac A Bank is seeking to increase the contribution of service income as credit margins face pressure. It is also developing its current account savings account (CASA) base to reduce funding costs and support lending capacity.

The bank plans to further expand service income, strengthen its market presence and increase the number of customers who regularly transact through its banking channels.

Digital banking and kiosk banking are among its priorities. The bank plans to further digitalize processes and integrate financial, payment and consumer services on its platforms to improve customer experience and expand its retail operations.

Governance supports adaptation to market changes

Bac A Bank also identifies prudent governance and liquidity management as key elements of its growth strategy.

Amid changes in interest rates and capital markets, the bank said it has maintained liquidity and a balanced funding structure while adjusting policies to market conditions.

According to Bac A Bank, it complies with prudential requirements set by the State Bank of Vietnam, including the capital adequacy ratio (CAR), liquidity reserve ratio, loan-to-deposit ratio and limits on the use of short-term funds for medium- and long-term loans.

The bank has also taken a cautious approach to deposit rates while maintaining preferential lending programs in line with government policy.

While this approach can put pressure on short-term profitability, Bac A Bank said it seeks to balance the interests of the bank, customers and the broader economy rather than maximize short-term profit.

The bank has developed products and promotional programs for different customer groups, including credit packages for individuals and businesses under its green credit orientation, as well as payment services supporting import and export activities.

These products are accompanied by interest rate and fee policies designed to support customers’ production and business activities.

As Vietnam’s banking sector responds to digital transformation and growing sustainable development requirements, Bac A Bank is combining technology investment and retail expansion with its focus on prudent governance and sustainable lending.

The bank plans to continue expanding digital services and diversifying revenue while directing capital toward sectors and businesses aligned with its sustainable development strategy.