AsemconnectVietnam - Sacombank (code: STB) has just announced its business results for the fourth quarter of 2023, with pre-tax profit reaching nearly VND2,755 billion. Cumulatively for the whole year 2023, the Bank earned nearly VND9,600 billion in pre-tax profit, completing the target set for the past year.

Specifically, in the fourth quarter of 2023, Sacombank's net interest income reached VND5,633 billion, down 6.8% over the same period, and non-interest income also decreased by 40% compared to the same quarter last year, only bringing in VND1,075 billion.
Net profit from service activities this quarter and net profit from other business activities of Sacombank also decreased by 33.9% and 67.5%, respectively, bringing in only VND586 billion and VND201 billion. Net profit from foreign exchange trading was at more than VND296 billion, down 2.2% over the same period.
Sacombank's total operating income (TOI) in the last quarter of 2023 decreased by 14.4%, to VND6,708 billion, while operating expenses this quarter increased by 28.9%.
Sacombank's net profit from business activities decreased by 36.4%, to VND3,299 billion. But thanks to cutting more than 83% of risk provision costs, Sacombank still recorded a pre-tax profit of VND2,755 billion in the fourth quarter of 2023, an increase of 45.1% compared to the same quarter last year.
Cumulatively for the whole year 2023, Sacombank's total operating income will be flat, while total expenses will increase by 18%, causing net profit from business activities to decrease by 12.7%. But thanks to cutting nearly 59% of risk provision costs, this bank's pre-tax profit still increased by more than 51% to VND9,595 billion for the whole year 2023, completing the set target.
By the end of 2023, Sacombank's total assets reached nearly VND674,400 billion, an increase of 13.9% compared to the beginning of the year. Customer loans increased by 10.1%, to more than VND482,700 billion. Customer deposits increased by 12.3%, at more than VND510,700 billion. The bank's bad debt balance increased slightly in the fourth quarter of 2023, to VND10,984 billion, equivalent to a rate of 2.28%, while at the end of 2022, Sacombank's bad debt ratio was controlled below 1%.
However, in 2023, Sacombank will also be drastic in handling bad debt. Debt collection and settlement work has been drastically implemented. It is estimated that nearly VND7,000 billion of bad debts and outstanding assets have been successfully handled, bringing the total accumulated recovery to nearly VND95,000 billion. According to the bank's estimates, nearly VND7,000 billion bad debts and outstanding assets were successfully handled during the year, bringing the total accumulated recovery to nearly VND95,000 billion.
According to Sacombank's financial report, the number of debt securities issued by domestic economic organizations (mainly VAMC bonds) has decreased from VND21,514 billion to VND16,433 billion, corresponding to a decrease of more than VND4,000 billion compared to the end of the third quarter and decreased by more than VND5,000 billion compared to the beginning of 2022. Sacombank has made a provision of VND14,603 billion for this remaining amount.
Operational safety ratios and financial indicators are balanced between safety and efficiency goals: CAR ratio is estimated at 9.45%, LDR ratio is estimated at 83%, NIM ratio is estimated at 3.88 %, the ROA and ROE indicators are estimated at 1.21% and 18.03%, respectively, an increase of 0.3 and 4.2%. Sacombank has made a 100% provision for the entire remaining outstanding asset debt portfolio that has not been processed, thereby the bank said, approaching the completion of financial obligations under the Project.
N.Nga
Source: VITIC/Tinnhanhchungkhoan