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Business Performance Results of Agribank Bac Ninh in the Period 2015 - 2019


Table 2.4. Business performance of Agribank Bac Ninh in the period 2015 - 2019

Unit: Billion VND


Target

Year

2015

Year

2016

Year

2017

Year

2018

Year

2019

Business revenue

business

8.89

9.41

10.82

10.97

11.42

Service revenue

95.62

93.71

105.76

118.23

129.61

Profit before tax

26.73

29.56

31.15

33.78

34.61

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Business Performance Results of Agribank Bac Ninh in the Period 2015 - 2019

Source: Bank for Agriculture and Rural Development - Bac Ninh Branch,

2019


From the above table, it can be seen that the revenue and profit of Agribank Bac Ninh have had stable growth in the period from 2015 to 2019. Specifically, in 2015, the revenue of Agribank Bac Ninh reached 104.51 billion VND, by 2019, the revenue of Agribank Bac Ninh reached 141.03 billion VND, corresponding to a growth rate of 34.9% within 5 years. Meanwhile, the pre-tax profit of Agribank Bac Ninh in 2015 was 26.73 billion VND, by 2019 it increased to 34.61 billion VND, corresponding to a growth rate of 29.48% within 5 years. Regarding revenue structure, revenue from business activities accounts for the main proportion of Agribank Bac Ninh's revenue, while revenue from services only accounts for about 10% of Agribank Bac Ninh's total revenue in the past time.

2.2. Current status of marketing activities of the Bank for Agriculture and Rural Development - Bac Ninh Branch

2.2.1. Product development activities


Over the years, Agribank Bac Ninh has initially built for itself a diverse portfolio of basic products and services to meet most of the financial needs of customers.

For individual customers, Agribank Bac Ninh develops and provides a very rich and diverse product chain, from savings products (term,


no term, flexible term for partial principal withdrawal), bank card products and links with prestigious international card organizations such as MasterCard, Visa (domestic debit card, international debit card, international credit card), remittance services and foreign currency trading, along with other technological utilities such as SMS Banking sending notification messages to customers when there is a change in the account, Atransfer transferring money by text message, VNtopup topping up phone accounts via text message and many other products and services. In order to increase the difference and attractiveness compared to competitors, Agribank Bac Ninh regularly offers incentives for personal products such as gift vouchers, gifts on special occasions.

Basically, the strength of Agribank Bac Ninh is to deploy very good personal banking services based on the general personal products of the Bank for Agriculture and Rural Development of Vietnam, creating a competitive advantage with banks in the same Agribank system in particular and other commercial banks in general in terms of lending, mobilization and card services. However, due to the breakthrough development time only in the last 5 years, the results have not been really effective. The main personal product portfolio that Agribank Bac Ninh provides to customers is shown in Table 2.5 below.


Table 2.5. List of products for individual customers at Agribank Bac Ninh


Loan products

Mobilized products

Service

Consumer lending

Smart Savings

Remittance services

Home loan/construction

home repair

Savings with principal

active

Card services

Car Loan

Social Security Savings

Internet Services

Banking, Mobile Banking

Loans for workers

go work abroad

School savings

Transfer money

Business Loans

Term savings interest

floating rate

Discount/rediscount

Installment Loan

Savings on consignment

month

Czech

Loans to support studying abroad

Savings deposit no

periodically

Foreign exchange trading

Financial overdraft loan

section



Source: Bank for Agriculture and Rural Development - Bac Ninh Branch,

2019


For corporate customers and financial institutions, Agribank Bac Ninh focuses on deploying a portfolio of lending, mobilization, guarantee, international payment products, corporate customers, large corporations and member units, and service products. With a constantly growing network, Agribank Bac Ninh has more and more opportunities to mobilize and lend to unserved customers in provincial cities. In addition, Agribank Bac Ninh also provides additional financial consulting services, bond issuance consulting and underwriting, and payment agency for bond issuances. The table below shows some basic products that Agribank Bac Ninh is providing to corporate customers.


Table 2.6. List of products for corporate customers at Agribank Bac Ninh


Loan

Accounts and deposits

Guarantee

Pay

Service


Stimulus

Deposit no

Term (Deposit)

Loan guarantee


Domestic payments include: State budget collection services; Bill payment services; Automatic collection


Card services

Additional

business capital

Term deposit

interest due after full

Bid security

SMS

Banking

Loan

export incentives

Transfer, receive

Multi-Pay (Agripay)

Guarantee

contract performance


VN Topup

Lending to projects as designated by

government


Term deposits with periodic interest payments


Guarantee

pay


International payment includes: Receiving and transferring money; transferring money to pay abroad; Collection of export documents; Import collection; Notification of documentary letters of credit; notification with L/C confirmation; transfer of documentary credit collection;...


Pay bill

Syndicated lending

Payment service

salary through account

Counter Guarantee

Valuable papers

Early repayment of foreign debt


Flexible deposit


Advance payment guarantee


Discount, rediscount

Overdraft loan on current account

maths


Term deposits with interest paid in full in advance


Same insurance

Guarantees and other types of guarantees

Border Payment: Documentary Money Transfer Service

border trade letter of credit; border trade letter of credit; border remittance letter of trust

trade


Payment factoring

Source: Bank for Agriculture and Rural Development - Bac Ninh Branch, 2019


Although the basic product portfolio has been established, product and service development is an activity that is being strengthened at Agribank Bac Ninh. Based on the existing products of Agribank Vietnam in general, Agribank Bac Ninh develops its own improvements in these products. This is a combination of the Branch's departments such as the Corporate Customer Department, the Personal Customer Department, the International Payment Department and the Marketing Department. Product development at Agribank Bac Ninh takes place in two basic forms: improving existing products and focusing mainly on periodic promotional programs. The basic process of product development at Agribank Bac Ninh is carried out through the following steps:

Firstly, the Marketing Department of Agribank Bac Ninh receives work proposal requests from direct business departments (Corporate Customer Department, Personal Customer Department, International Payment Department) on four basic contents for new products and promotional programs: Business objectives, program name, expected sales to be achieved, expected gift budget for the new product program. Due to practical requirements, business departments are often direct business units, so they will quickly recognize customer needs. Work proposal requests from these departments are often the core contents of the program. In other cases, when the departments in charge of direct business do not propose products and promotional programs themselves, the Marketing Department of Agribank Bac Ninh will proactively propose if it recognizes changes from the competitive market. Thus, the work of forming product ideas at Agribank Bac Ninh mainly comes from direct business departments.

Second, Marketing Agribank Bac Ninh will conduct research to evaluate the content, feasibility and decide on the promotional budget for the program. Immediately after receiving the work request from the direct business departments, in case the proposed program content is not accepted, the business and marketing departments will meet and discuss to come up with the most suitable content for the program. If the product program after meeting and discussion does not reach a consensus between the goals, sales, promotion methods and budget between the

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For the Sales and Marketing Department, the final decision belongs to the Marketing Department. Marketing can refuse to develop and promote the product if the content, business objectives and budget are assessed as not feasible. In this case, the Sales Department will have to re-propose the four program contents from the beginning. Thus, the right to choose and evaluate ideas at Agribank Bac Ninh belongs to the Marketing Department.

Third, the Marketing Services Department of Agribank Bac Ninh will coordinate activities with internal groups such as the design department to build images and promotional support tools, the branding department to propose the most suitable plans, forms of promotion, sponsorship, advertising, and activation for the program with the expected budget.

Fourth, the departments of Agribank Bac Ninh will jointly implement the program. After completing the program designs, the Marketing Department will proactively carry out public relations, press releases, print, television and internet advertising. The Brand Department supports the implementation of promotional activation forms and monitors the implementation from branches and coordination from other blocks such as: the administrative department purchases and equips gifts, transports designs, leaflets, and necessities related to the transaction offices of Agribank Bac Ninh branches. The business departments monitor and evaluate business results comparing actual and expected results.

2.2.2. Product and service pricing activities


Valuation activities at Agribank Bac Ninh are mainly carried out on three main aspects including mobilization valuation, lending valuation and service valuation. In fact, with business units at Agribank Bac Ninh, valuation is mainly carried out based on the following basic activities:

Firstly, sales specialists from all transaction offices under Agribank Bac Ninh collect and analyze prices of direct competitors after the product is launched. The factors collected and analyzed are: prices of competitors in the area and business methods of competitors.

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compete with similar products. Business unit leaders will collect information on business results, profit target achievement results, information from branch business management departments and most importantly, competitor prices.

Second, send the collected and analyzed information to the Agribank Bac Ninh headquarters. Here, the branch's business management department will rebuild the pricing plans based on the information collected from the business units. In different cases, the pricing method can be more flexible, but the main pricing method implemented at Agribank Bac Ninh is the pricing method based on the minimum input cost plus the expected profit level based on the relationship.

Third, after the business departments have come up with basic pricing plans, the final task is for the management board of Agribank Bac Ninh branch to approve and issue them for implementation.

2.2.3. Product and service distribution activities


Agribank Bac Ninh uses both modern and traditional banking distribution systems. The strength of Agribank's distribution system is to focus on providing products and services through a network of transaction offices spread throughout Bac Ninh province. Agribank Bac Ninh transaction offices are organized to be able to provide most of the products and services that the branch can provide. The current distribution support process at Agribank Bac Ninh focuses on strengthening the transaction office system and enhancing technology to create new distribution channels. With the work of strengthening the transaction office system and collaborators, the basic content of this activity is as follows:

Agribank Bac Ninh determines the development target of transaction offices based on business results. At the end of each fiscal year, the Board of Directors of Agribank Bac Ninh will set the target revenue and profit. Based on this target revenue and profit, the business units of Agribank Bac Ninh will re-evaluate the total capacity and performance of the unit. In the case of markets and

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The market is still open, the human resources are still lacking, the business units cannot meet the revenue target without increasing the distribution channel. The business units will send a request to the bank's network development department to request to open more distribution channels of branches, transaction offices, ATMs.

The Agribank Bac Ninh Network Development Department will conduct a survey, evaluate, select and submit a licensing request to the headquarters of the Vietnam Bank for Agriculture and Rural Development to request the establishment of a transaction office according to the conditions permitted by the State Bank. With modern banking distribution channels such as ATM, Card, Internet Banking, Mobile Banking, Agribank Vietnam Information Technology Center, the headquarters will cooperate with Agribank Bac Ninh to develop a roadmap for application and implementation based on the actual needs of the market and the investment budget of Agribank Vietnam.

Thus, the strategy to expand the traditional distribution channel of Agribank Bac Ninh is to strengthen its presence and banking facilities by applying for permission to open more transaction offices in key economic zones in Bac Ninh to increase market share and brand, laying the foundation for increasing revenue. Currently, the important goal in the network development activities of Agribank Bac Ninh is to readjust the infrastructure and strengthen the network in the direction of improving retail capacity based on effective and friendly service. The goal of developing the network of Agribank Bac Ninh is not only to focus on improving the service capacity, image, and brand of Agribank Bac Ninh throughout the city but also to bring financial activities to remote areas of the city. The network growth rate of Agribank Bac Ninh in the past 5 years has reached 20%. In the context of the current banking market, this is an impressive and encouraging number for a single bank branch.

In addition, it can be seen that Agribank Bac Ninh is expanding the application of technology to enhance the provision of modern banking products and services, but currently these forms only focus on developing ATM systems and ATM cards. ATM cards Agribank implements a project to deploy connections to

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