Photo: VGP
Total asset is expected to increase 11% to VND 657.8 trillion, of which outstanding loans are expected to reach VND 491,600 billion, up 12% compared to 2022. Total capital mobilization to reach VND 574,600 billion, up 11%.
The lender’s leaders said that it will strive to complete the business plan in 2023, and successfully restructure to create better values for shareholders.
In 2023, Sacombank entered a new business cycle with comprehensive digital transformation goals and strategies. The bank said it would boost its business scale and operational efficiency, and grow its capital sustainably.
At the meeting, Mr. Duong Cong Minh, Chairman of Sacombank’s Board of Directors, affirmed: “Sacombank’s strategic orientation in 2023 is Accelerating digital transformation – Building a business ecosystem. At the same time, the Bank is constantly increasing the scale and operational efficiency of its units throughout the system, ensuring safe and effective operations.
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| Mr. Duong Cong Minh, Chairman of Sacombank’s Board of Directors is seen at the AGM. |
Pre-tax profit of over VND 6,334 billion, up 44.1%, beating target by 20%
Sacombank’s pre-tax profit was VND6,339 billion, up 44.1% over the previous year, reaching 120% of the plan. Profit before setting up the project reached 19,940 billion VND, up 57.5%. ROE at 13.83%, up 3.04%; Average ROA increased by 0.23% to 0.91%.
Total assets of the bank officially surpassed the mark of VND 591.9 trillion, up 13.6% compared to 2021 and reaching 103% of the plan assigned by the general meeting of shareholders, in which, the credit balance reached more than VND 438.7 trillion, up 13%, in accordance with the allocated limit, accounting for 3.6% of the credit market share of the whole industry. The bad debt ratio was controlled at 0,93%, down 0.55% compared to the beginning of the year.
In the past year, the bank has mobilized VND 519.1 trillion, up 11.8%, reaching 101% of the plan, ensuring liquidity stability and effective interest rate management against many market fluctuations.
Despite the large profit before tax, Sacombank has not yet paid dividends to shareholders because the restructuring has not been completed. According to Mr. Duong Cong Minh, Chairman of the Board of Directors of Sacombank, the bank is in the restructuring phase due to the merger with Southern Commercial Joint Stock Bank. If you want to pay dividends, you must get the permission of the State Bank.
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Moody’s adjusts Sacombank’s credit rating outlook from “stable” to “positive”
This adjustment reflects Moody’s assessment of the continuous improvement of credit capacity thanks to Sacombank’s handling of bad debts and outstanding assets. Accordingly, the asset quality (Asset Risk) of Sacombank was raised 1 level from caa1 to b3.
In addition, Moody’s also assessed that Sacombank has the lowest interbank reliance ratio among the banks rated by the company. Moody’s has also reconfirmed Sacombank’s long-term deposit and issuer rating at B3 thanks to the bank’s efforts to implement its restructuring strategy. This organization also made positive predictions about Sacombank’s ability to increase its rating in the next 12-18 months.
At the end of the first quarter of 2023, Sacombank’s pre-provision profit before provision was more than VND 3,400 billion, after making provision for risks and allocating expenses according to the scheme, profit before tax was VND 2,383 billion, an increase of 49.9% over the same period last year; total assets of 596,694 billion dong, up 0.8% compared to the beginning of the year; total mobilization of VND 529,500 billion, up 2% compared to the beginning of the year; total credit outstanding was 448,531 billion dong, up 2.2% compared to the beginning of the year; bad debt ratio at 1.11%, controlled below 2%.
