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Sacombank targets 20 per cent increase in profits in 2021

Update: April, 23/2021 - 16:00

 

Sacombank’s management board answer questions from shareholders at the bank’s annual general meeting held in HCM City on April 23. — VNS Photo

HCM CITY — Saigon Thương Tín Commercial Joint Stock Bank (Sacombank) targets profit before tax of VNĐ4 trillion (US$173.2 million) this year, an increase of 20 per cent from 2020, and a non-performing loans ratio of under 2 per cent.

The bank held its annual general meeting on April 23 and its shareholders approved its financial statements for 2020, a number of targets for this year, profit distribution plans, and other important proposals.

Nguyễn Đức Thạch Diễm, its CEO, said for 2021 the bank also targets increases of 8 per cent in total assets to VNĐ533.3 trillion ($23.98 billion) and 9 per cent each in deposits and outstanding loans.

To accomplish the above targets, the bank would continue to speed up restructuring, optimise capital use efficiency, improve customer experiences, satisfaction and confidence, accelerate digital transformation, strengthen risk management, closely monitor the operations of its systems, and improve labour productivity and human resource quality, she said.

Phạm Văn Phong, the bank’s permanent vice chairman, said despite the difficulties caused by the Covid-19 pandemic last year, Sacombank achieved positive performances in most areas of operations and met all its targets.

Its profit before tax increased by 3.8 per cent to VNĐ3.34 trillion ($144.78 million), 30 per cent above the target.

Its total assets at the end of 2020 were worth over VNĐ492.5 trillion ($21.35 billion), an increase of 9 per cent during the course of the year.

It had total deposits of over VNĐ447.4 trillion and loans outstanding of over VNĐ340.6 trillion, year-on-year increases of 8 per cent and 15 per cent.

Diễm said Sacombank’s safety performance indicators met the State Bank of Việt Nam’s norms, especially the capital adequacy ratio, which at 9.53 per cent is higher than the minimum rate of 8 per cent stipulated by the central bank.

Its return on assets and return on equity were 0.57 per cent and 9.63 per cent, up 0.07 percentage points.

Earnings per share was VNĐ1,248, an increase of 10.5 per cent.

Last year, as the bank managed to collect over VNĐ15.2 trillion ($659.2 million) worth of bad debts, its non-performing loans ratio declined to 1.64 per cent.

Sacombank helped customers overcome difficulties through practical measures such as restructuring debts, waiving interest worth over VNĐ8.3 trillion and earmarking VNĐ44.5 trillion for preferential credit packages to individual and corporate customers, Diễm said.

The bank has enhanced the use of digital technologies such as chatbox and personal robotic assistance and paid close attention to modernising its products and services through the launch of online identity verification (eKYC), NFC mobile contactless payment, ‘Tap to Phone’ technology, and others.

She said the bank achieved impressive growth in the first quarter of the year, with its profit equalling 25 per cent of the year’s target.

Speaking about dividends, Dương Công Minh, the lender’s chairman, said the board of directors had sought the State Bank of Vietnam’s approval for paying dividends, but had yet to get it.

Besides, since the bank is in the process of restructuring, it must focus its resources on handling bad debts, he said.

“The bank's Board of Directors promised to try to restructure successfully in five years, and [the bank] is expected to return to normal in 2022 and be able to pay dividends in 2022 or 2023.”

The bank has accumulated profits of VNĐ6 trillion. — VNS

 

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