Sacombank achieved profit before tax of VNĐ5.34 trillion in the first half of the year, equivalent to 50.4 per cent of the full-year plan. — Photo courtesy of Sacombank

Sài Gòn Thương Tín Commercial Joint Stock Bank (Sacombank) reported profit before tax of VNĐ5.34 trillion (US$213 million) for the first half of the year, a year-on-year increase of over 12 per cent and equivalent to 50.4 per cent of the full-year target.

As of June 30 Sacombank's total consolidated assets were worth more than VNĐ717 trillion ($28.6 billion), up 6.4 per cent for the year, with profitable assets increasing by 11 per cent.

Its deposits and loans increased by more than the industry average.

Total deposits grew by 11 per cent for the year to nearly VNĐ642 trillion, with deposits from individual customers accounting for 80 per cent.

Outstanding loans rose to nearly VNĐ517 trillion, up 7 per cent, as market share grew by 0.03 percentage points, mainly meeting capital needs for production and business.

Optimising its capital structure has helped the bank increase stability, quickly reduce capital costs, improve its net interest margin (NIM), and create conditions for increasing net interest income.

Sacombank has recovered or handled VNĐ4.8 trillion of legacy non-performing debts and outstanding assets. Its non-performing loan ratio was 2.15 per cent.

Its total operating income was more than VNĐ14 trillion, of which nearly VNĐ2 trillion was non-interest income.

Besides, Sacombank has stepped up its use of technology to increase utilities and modernise products and services to attract and enhance the customer experience.

In order to enhance overall security for customer accounts and comply with Decision 2345/QĐ-NHNN of the State Bank of Vietnam, Sacombank also implemented biometric authentication for digital transactions last month.

Additionally, Sacombank has continued to restructure its operating model towards leanness - standardisations - professionalism by reshaping its organisational structure, researching transformation of the counter transaction model and comprehensively reviewing operations and core process systems, thereby helping the bank optimise efficiency in operations, business and risk management.

In March and July this year Moody's upgraded Sacombank's ratings and Fitch assigned stable outlook for its long-term Issuer Default Rating, testifying to the bank's continuous improvements during restructuring and constantly affirming its position in the domestic and international markets.

In the first half of 2024, despite facing many challenges due to the global and domestic economic downturn, Sacombank still met its targets, increased its scale, achieved financial restructuring, continued to establish a foundation to promote digital transactions, restructured its operating model and standardised human resources.

These serve as crucial foundations for the bank to achieve the 2024 targets approved by shareholders. — VNS