Despite the tough market conditions, Sacombank maintained steady all-round growth in the first half of the year.
Most notably, it fulfilled its target of handling nearly VND21.58 trillion (US$921.57 million) worth of outstanding accrued interest under the restructuring scheme.
Pre-tax profits were worth VND10.6 trillion ($452.67 million) before risk provisioning and restructuring expenses, which brought down the number to VND 2.9 trillion ($123.88 million), an increase of nearly 10 per cent year-on-year and meeting 55.1 per cent of the target approved by shareholders.
Its safety performance indicators met the State Bank of Viet Nam’s norms and improved, especially the capital adequacy ratio, which has always remained above 9 per cent as against the minimum requirement of 8 per cent stipulated by the central bank, ensuring a balance between safety and efficient use of capital resources.
Total consolidated assets reached more than VND551 trillion, up 5.8 per cent from the beginning of the year.
Total deposits and loans outstanding increased by 6.2 per cent and nearly 7 per cent compared to the beginning of the year to over VND493 trillion and nearly VND415 trillion, respectively.
With the collection and handling of bad debts enhanced, the bank got back more than VND12 trillion worth of bad debts and outstanding assets, bringing its bad debt ratio down to 1.22 per cent.
ROA and ROE improved to 0.77 per cent and 11.86 per cent, respectively.
Total income increased by 26.6 per cent year-on-year to more than VND11.2 trillion. Non-interest income was up nearly 85 per cent driven by card, insurance and e-banking services.
Labour efficiency improved, with the cost-income ratio (CIR) falling by eight percentage points to 48.3 per cent.
With its goal to become a versatile and modern retail bank, Sacombank is an early investor in comprehensive digital transformation.
This year, it enhanced digital transformation, considering it as a prerequisite to improve its digital capabilities, competitiveness and position in the market.
For instance, Sacombank has collaborated with Mastercard for the Sacombank Mastercard Only One, a one-chip debit and credit card.
It recently launched the email transaction service with digital signature and a service that allows corporate customers to open accounts online (using eKYC technology).
It is also building omni-channel banking to increase utilities and bring a seamless and full experience to customers.
For its constant efforts, Sacombank has won prestigious awards and titles such as Best in Treasury and Working Capital from the Asset Magazine (Hong Kong), the Sao Khue Award for excellence in software product in digital banking from the Vietnam Software and IT Services Association, and numerous others for digital technology, transaction volume and number of cards issued from international card organisations such as Mastercard and Visa.
Sacombank will continue towards its goal of comprehensive digitisation, accelerate its restructuring, implement solutions to handle bad debts, promote the development of digital technology in all key areas, complete risk management projects in line with Basel II standards, improve the customer experience and satisfaction and labour productivity, and focus all resources to create a breakthrough in its business. — VNS