HCM CITY — Saigon Thương Tín Commercial Joint Stock Bank (Sacombank) has set a target to achieve pre-tax profit of VNĐ14.7 trillion (US$532 million) this year, a year-on-year increase of 15 per cent.

The bank also targets increases of 9 per cent in deposits to VNĐ736.3 trillion ($28.2 billion), 14 per cent in loans outstanding to VNĐ614.4 trillion ($23.5 billion) and 10 per cent in total assets to VNĐ819.8 trillion ($31.5 billion).

It plans to keep its non-performing loan (NPL) ratio below 2 per cent.

These targets, along with other important proposals, were approved at the lender’s annual general meeting of shareholders in HCM City on April 25.

According to CEO Nguyễn Đức Thạch Diễm, the bank achieved a pre-tax profit of over VNĐ3.6 trillion ($138.3 million) in the first quarter of the year, up 38.4 per cent year-on-year, reaching 25.1 per cent of its full-year target.

Reflecting on 2024’s performance, Diễm said Sacombank met all financial targets.

Total assets surpassed VNĐ748 trillion ($28.7 billion), up 10.9 per cent year-on-year and reaching 103 per cent of the planned target.

Deposits and loans outstanding were at VNĐ674.8 trillion ($25.9 billion) and VNĐ539.3 trillion ($20.7 billion), increases of 16.7 per cent and 11.7 per cent, equivalent to 106 per cent and 101 per cent of the annual plan.

Profit before tax exceeded VNĐ12.7 trillion ($487.7 million), a 32.6 per cent year-on-year increase and 20 per cent above the target. Return on assets (ROA) and return on equity (ROE) rose to 1.42 per cent and 20.03 per cent, respectively.

The NPL ratio improved slightly to 2.08 per cent, and all prudential ratios remained within the State Bank of Vietnam’s (SBV) regulatory limits. Notably, Sacombank’s capital adequacy ratio stood at 10.14 per cent, well above the SBV's minimum requirement of 8 per cent, reflecting a strong financial buffer.

 

Sacombank recovered and resolved nearly VNĐ10 trillion ($384 million) of bad debt and legacy assets in 2024, bringing the cumulative total to nearly VNĐ104 trillion. Of this amount, over VNĐ76.6 trillion was part of its post-merger restructuring plan. The legacy asset portfolio under the restructuring plan has been reduced by 80.5 per cent, and its proportion of total assets has dropped to just 2.4 per cent.

The bank has also fully provisioned for remaining legacy assets, raising its risk buffer to nearly VNĐ25.7 trillion.

For the first time in nine years, Sacombank announced a plan to distribute dividends by issuing shares to existing shareholders to increase charter capital.

Upon receiving approval from the SBV, the Board of Directors will draft a detailed plan and seek shareholder consent. Sacombank's cumulative retained earnings currently stand at VNĐ25.3 trillion ($970.9 million).

Shareholders at the AGM also approved the proposal to contribute capital or acquire shares of a securities company to make it a Sacombank’s subsidiary.

Diễm said 2025 would bring continued challenges and emphasised it would be a pivotal year marking the completion of Sacombank’s restructuring journey.

Guided by the motto “Transformation – Efficiency – Sustainability,” the bank is accelerating its digital transformation, with a particular focus on AI to enhance productivity and customer experience. It is also strengthening cost control, optimising operations, expanding its partner ecosystem, particularly with technology firms, and launching unique and appealing products and services that drive strong customer base growth, according to the CEO. — VNS