Sacombank sets to achieve $110.6 million in pre-tax profit in 2020

Friday, Jun 05, 2020 17:00

Duong Cong Minh, Sacombank chairman, delivers opening remarks at the annual general meeting held online on June 5. — VNS Photo

Shareholders of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) approved the bank’s financial statements for last year, a number of targets for this year, profit distribution plans and other important proposals at its annual general meeting held online on Friday.

Pham Van Phong, the bank’s permanent vice chairman, said Sacombank had achieved positive performances in most areas of operation in 2019.

Its profit before tax increased by 43.2 per cent to VND3.2 trillion (US$137.5 million), 21.4 per cent higher than the target.

Its return on assets (ROA) and return on equity (ROE) were 0.57 per cent and 9.56 per cent, up 0.11 percentage points and 0.28 percentage points year-on-year.

Earning per share was VND1,119, an increase of VND338 from 2018.

Its total assets at the end of 2019 were worth over VND453.58 trillion ($19.4 billion), an increase of 11.7 per cent during the course of the year.

It had total deposits of over VND414 trillion and loans outstanding of over VND296.4 trillion, year-on-year increases of 11.9 per cent and 15.3 per cent.

Its non-performing loans ratio declined by 0.22 percentage points to 1.9 per cent, meeting the target of below 2 per cent.

For 2020 the bank targets increases of 10 per cent in total assets and deposits and 11 per cent in outstanding loans.

It targets profit before tax of VND2.57 trillion ($110.6 million) and non-performing loans of under 3 per cent.

Explaining why the bank set a lower profit target for this year, Nguyen Duc Thach Diem, its CEO, said the Covid-19 pandemic had affected the global economy, including Viet Nam’s.

“Sacombank has received petitions from customers to restructure and reduce interest rates on total loans of nearly VND25 trillion. This is a large number, and if (we) lower interest rates by 1-2 percentage points, the bank’s profits will reduce.”

In case the epidemic is well controlled, the bank would make every effort to achieve profits equal to that of 2019 of over VND3.2 trillion, she said.

Despite difficulties, the bank achieved impressive growth in the first five months of the year, with its profit before tax topping VND1.3 trillion, higher than in the same period last year and equalling 50 per cent of the year’s target, and a bad debts ratio at 2 per cent.

Duong Cong Minh, the chairman, said 2019 was the third year of restructuring and the bank recorded many important achievements and has gradually regained its position in the market.

"The roadmap for the restructuring project is over 10 years, but with such good results, we believe that by 2023 Sacombank will return to the position of one of the leading banks in Viet Nam."

Speaking about dividends, he said the bank’s board of directors had sought the State Bank of Vietnam’s approval for paying dividends, but had yet to receive reply.

“The bank has accumulated profits of more than VND4 trillion. Banking is a conditional business sector, and so the bank can only pay dividends to shareholders if it gets approval from the SBV. On behalf of shareholders we will continue to petition the SBV on this issue.”

Sacombank has 570 transaction points in Viet Nam, Laos and Cambodia. — VNS

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