Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) will establish three affiliates between now and 2020, the bank announced.

One of the affiliates will be a financial limited liability company operating in the fields of credit-consumer finance services, finance leasing, credit card services and other related services. It is projected to have chartered capital of VND500 billion (US$22 million). The other two affiliates will be a life insurance company and a general insurance company, with chartered capital of VND500 billion and VND300 billion, respectively.

Sacombank’s annual general shareholders’ meeting will be held on June 30 after being postponed two times. At the meeting, shareholders will discuss the election of the new members of the Board of Directors and the Supervisory Board for the 2017-22 period.

They will also work on the establishment of the three affiliates.

Sacombank’s leaders said that in order to serve the needs of customers, the bank needed to specialise its consumer lending services through the operation of financial companies.

The establishment of new financial company would help professionalise consumer lending services and improve risk management, the bank said.

Regarding insurance services, Sacombank has diversified customers who would help the bank exploit potential in the field and boost cross-selling of products, gradually penetrating the market.

Previously at the 2015 annual general shareholders’ meeting, Sacombank’s plan of establishing a financial company and two insurance companies was approved. However, the plan has not yet been implemented. In 2017, Sacombank aims to increase total assets by 16 per cent to VND384.6 trillion. Total mobilised capital is expected to reach VND356.1 trillion. Total outstanding loans are projected to touch VND277 trillion and pre-tax profit is estimated to be VND585 billion. — VNS