Sunday, May 26,2024 - 4:19 GMT+7  Việt Nam EngLish 

Sacombank (STB) reached VND2,654 billion profit in Q1/2024 

 Thursday, May 16,2024

AsemconnectVietnam - Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, code STB - HOSE) has just announced its financial report with consolidated pre-tax profit reaching VND2,654 billion, an increase of 11.4% over the same period in 2023.

In the first quarter of 2024, Sacombank's net interest income increased by 2% over the same period, reaching VND5,951 billion thanks to a 19% decrease in interest expenses and similar expenses, or a decrease of VND1,537 billion. Interest income and other income also decreased by more than 3%, equivalent to VND1,423 billion.
Meanwhile, Sacombank's non-interest income decreased by 4.1%, to VND924 billion. Net profit from service activities decreased by 12%, to VND578 billion; Net profit from trading securities increased by 19%, bringing in VND308 billion. The Bank does not provide detailed explanations for the above items.
Net profit from investment securities was more than 3.5 times higher than the same period while net profit from other business activities decreased by 44%, but these two segments both contributed insignificantly to Sacombank's profit.
Sacombank's total operating income increased slightly by 1.1% over the same period, to VND6,875 billion. Total operating costs increased by 4%, to VND3,543 billion, mainly due to increased spending on employees, pulling net profit from business activities down by 1.5%.
However, thanks to a 32.3% decrease in risk provision costs, there was a positive impact on Sacombank's pre-tax profit, which increased by 11%, reaching VND2,654 billion.
Up to now, Sacombank's undistributed profits have reached about VND22,500 billion, among the highest among joint stock banks. However, Sacombank still cannot pay dividends this year because it has not completed the restructuring project.
As of March 31, 2024, Sacombank's total assets reached VND693,535 billion, an increase of 2.8% compared to the beginning of the year. Customer loans increased by 3.7% to VND500,408 billion. The bank also increased the loan risk reserve balance to VND8,268 billion. Bad debt balance at the end of the first quarter of 2023 was at VND11,401 billion, an increase of 3.8%. Due to the corresponding increase in lending, Sacombank's bad debt ratio was maintained at 2.28% while the coverage ratio improved to 72.5%. Customer deposit balance increased by 4.4% compared to the beginning.
Sacombank said that it successfully auctioned Phong Phu Industrial Park and received 20% of the auction amount. In addition, the bank is expected to complete the plan to handle Mr. Tram Be's shares, thereby being eligible to pay dividends. At the same time, in 2023, Sacombank has completed 100% provision for unrecovered debt sold from VAMC, one of the important goals of the Restructuring Project.
Ms. Nguyen Duc Thach Diem, Vice Chairman of the Board of Directors and General Director of Sacombank, said that the Bank is implementing the post-merger restructuring project, but the final problem is related to the plan to handle 32% of Mr. Tram Be.
According to Ms. Diem, the Sacombank restructuring project has been submitted to the State Bank for over 6 months. Due to objective factors, it needs more time to study more carefully. The management agency has basically agreed with Sacombank's policy and will submit it to the Government. Surely this year it will be completed and put up for public auction to recover debt for the bank.
At the same time, Sacombank has submitted a detailed plan to the State Bank of Vietnam and is awaiting approval. Resources to pay dividends are ready with undistributed profits reaching over VND22,000 billion, equivalent to nearly 100% of charter capital and will continue to increase in the near future. Therefore, shareholders' rights are still guaranteed.
In 2024, Sacombank sets a pre-tax profit target of VND10,600 billion, an increase of 10% compared to 2023. By the end of 2024, total assets are expected to be at VND724,100 billion, an increase of 10%, of which outstanding loans are Application reached VND535,800 billion, an increase of 11% and will be adjusted in accordance with the allocation limit. Mobilized capital is expected to be at VND636,600 billion, 10% higher than the end of last year, while the bad debt ratio is controlled below 2%. Limits and safety ratios comply with the regulations of the State Bank.
Source: VITIC/Tinnhanhchungkhoan


 © Vietnam Industry and Trade Information Center ( VITIC)- Ministry of Industry and Trade 
License: No 56/GP-TTDT issued by the Ministry of Information and Communications.
Address: Room 605, 6 th Floor, The Ministry of Industry and Trade's Building, No. 655 Pham Van Dong Street, Bac Tu Liem District - Hanoi.
Tel. : (04)38251312; (04)39341911- Fax: (04)38251312


Hitcounter: 25711716897