Sacombank eyes 20 per cent growth in profits

Friday, Apr 22, 2022 17:14

Duong Cong Minh , Sacombank’s chairman, speaks at the annual general meeting held in HCM City on April 22. — VNS Photo

Sacombank targets a 20 per cent rise in profit before tax to VND5.28 trillion (US$229.6 million) this year, and a non-performing loans ratio of below 2 per cent.

These targets were approved at its annual general meeting on April 22.

Shareholders also approved its financial statements for 2021, all other targets for this year, profit distribution plans, and other important proposals.

Nguyen Duc Thach Diem, the bank’s CEO, said in 2022 the bank also targets increases of 10 per cent and 12 per cent in deposits and loans outstanding.

It would speed up recovery of bad debts and outstanding assets with drastic debt recovery and risk management solutions, she said.

Sacombank expects to resolve all outstanding issues in its restructuring programme not later than 2023, or well before the deadline set by the State Bank of Vietnam.

Diem said it will embrace digital technology for all key activities to gradually complete its digital transformation and underline its status as one of the country's leading digital banks.

It would also strengthen risk management, improve customer experiences and satisfaction, and improve labour productivity and human resources quality, she said.

Despite the difficulties caused by the COVID-19 pandemic last year, Sacombank achieved positive results in most areas of operations and met all its targets.

Its profit before tax was VND4.4 trillion ($192.1 million), which beat the target by 10 per cent and increased by 31.8 per cent year-on-year.

It had deposits of over VND464.52 trillion and loans outstanding of over VND388.22 trillion, increases of 4 per cent and 14 per cent.

Profitability ratios continued to improve, with return on assets and return on equity at 0.67 per cent and 10.79 per cent, up 0.11 and 1.16 percentage points.

Diem said the lender’s safety performance indicators met the State Bank of Viet Nam’s norms, 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.

Earnings per share was VND1,630, an increase of 30.6 per cent.

The bank recovered nearly VND14.1 trillion ($616.52 million) worth of bad and outstanding debts, including VND11.8 trillion under the restructure scheme.

Its non-performing loans ratio declined to 1.64 per cent.

Speaking about dividends, chairman Duong Cong Minh said the bank has accumulated profits of VND9 trillion ($392.86 million), but since it is in the process of restructuring, the central bank’s approval is needed to pay dividends.

The bank expects to pay dividends in 2023, he said.

Speaking about its loans to beleaguered FLC Group Joint Stock Company, he said the bank had lent a total of VND 3.2 trillion and collected VND 2.6 trillion so far. It expects to collected the rest within a month, he said.

Its loans to FLC are legally compliant and safe, and "Actually, the loans are good, with all being backed by mortgages,” he said.

“But due to public pressure, Sacombank had to collect them early." — VNS

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