Sacombank eyes 50% increase in profits

Wednesday, Apr 26, 2023 07:04

Duong Cong Minh, Sacombank’s chairman, speaks at its annual general meeting of shareholders in HCM City on April 25. — VNS Photo

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) targets a 50 per cent increase in profit before tax of VND9.5 trillion (US$406 million) and a non-performing loan ratio of less than 2 per cent this year.

It also targets an increase of 11 per cent in total assets and deposits to VND657.8 trillion ($28.14 billion) and VND 574.6 trillion ($24.58 billion).

It eyes a 12 per cent increase in loans outstanding to VND491.6 trillion ($21.03 billion).

All these and some important proposals were approved at the lender’s annual general meeting in HCM City on April 25.

Nguyen Duc Thach Diem, the CEO, said Sacombank met all its targets last year.

Its profit was over VND6.3 trillion ($269.5 million), which beat the target by 20 per cent and increased by 44.1 per cent from the previous year.

Its NPL ratio was 0.93 per cent as against the target of below 2 per cent and 0.55 percentage points lower than in 2021.

It had deposits of VND519.1 trillion and loans outstanding of over VND438.7 trillion, up 11.8 per cent and 13 per cent.

The profitability ratios were the best ever in 10 years, with returns on assets and equity at 0.91 per cent and 13.83 per cent, up 0.23 and 3.04 percentage points.

The lender’s safety performance indicators met State Bank of Viet Nam norms, especially capital adequacy ratio, which was at 9.49 per cent as against a minimum requirement of 8 per cent.

Earnings per share was VND2,674, an increase of 63.8 per cent.

The bank recovered VND15.88 trillion ($682.1 million) worth of bad and outstanding debts, including over VND11 trillion under the restructure scheme.

Entering 2023, Sacombank was ready to embark on a new business cycle with comprehensive digital transformation goals and strategies, Diem said.

“We will work towards achieving sustainable development, and always innovate to keep up with the market.

“Based on the positive results in the past Sacombank is confident that it can complete its restructure ahead of the scheduled 2025 end."

The bank would strengthen risk management and credit quality, develop novel and differentiated products and services to enhance its competitiveness, deliver better customer experiences and satisfaction, and improve labour productivity and human resources quality, she added.

Answering shareholders’ questions about dividends, chairman Duong Cong Minh said banking was a conditional business and so the bank could only pay dividends to shareholders if approved by the SBV.

Since Sacombank was in the process of restructuring, it could not pay dividends, he said.

The bank had basically resolved bad debts under the restructure scheme, with the only remaining problem related to shares owned by Tram Be, its former deputy chairman.

Sacombank had sought SBV permission to buy his shares and auction them.

“We will strive to complete the share auctions in the four quarters of this year to complete the restructure by the end of this year so that we can pay dividends next year,” Minh said.

Diem said the bank had accumulated profits of VND12.7 trillion ($543 million), and was ready to pay it out as dividends after getting SBV approval. — VNS

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