Nguyen Duc Thach Diem general director of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) said, thanks to the stable business growth and good credit quality, Sacombank had been allowed by the The State Bank of Vietnam (SBV) to increase credit room by 13.5%
Specifically, as of June 30, Sacombank’s total credit balance increased by nearly five percent compared to the beginning of the year.
According to Nguyen Duc Thach Diem, in the context that the world economy and global trade are seriously affected by Covid-19 pandemic, in Vietnam, the disease also has a significant impact on all economic sectors and society.
However, credit growth in the last six months of 2020 has many positive signs. Particularly, Sacombank currently applies credit support solutions with interest rate reduction for existing loans up to 1.5 percent per year and new loans with interest rates from 6.5 percent per year; exemption and reduction of fees for online transactions (IB/MB), tax payment transactions, and international payment services, and guarantees.
At the same time, Sacombank supported individuals affected by the Covid-19 in accordance with the policy of SBV, while increased the absorption of capital for the economy. Therefore, credit growth at Sacombank by the end of 2020 is expected to reach as planned.
Also according to the general director of Sacombank, in the first six months of 2020, in the context of the general difficult economy of the Covid-19 epidemic, Sacombank has drastically implemented all solutions to ensure stable banking operations, closely follow the objectives of the Restructuring Scheme, and join hands with the government and the Banking Industry in assisting customers to overcome difficulties to restore production and social consumption through rescheduling debt payment.
At the same time, Sacombank exempted and reduced interest rates for customers affected by Covid-19 pandemic and spent about 25 trillion dong in implementing preferential interest rate financing packages, and exempted, reduced fees of online transactions to promote non-cash payments.
As of June 30, 2020, most of the key business targets assigned by Sacombank’s shareholders’ meeting increased positively and exceeded the 2020 schedule.
Total assets reached nearly 482 trillion dong, increased by 6.2 percent compared to the beginning of the year, reached 63.2 percent of the plan; mobilising from economic organisations and people reached nearly 436 trillion dong, increased 6.2%, reached 60.3 percent of the year plan. Credit reached more than 311 trillion dong, up 4.9%, reached 44.3 percent of the year plan with good credit quality, NPL ratio was below three percent.
Accumulated consolidated profit before tax reached more than 1.4 trillion, equivalent to 55.5 percent of the year plan and expected to reach about 1.6 trillion by the end of July.
The operational safety ratios continued to be improved towards stability and sustainability, especially the CAR to ensure compliance with the provisions of Circular 41/2016-TT-NHNN from the beginning of the year and the ratio from short-term capital to medium and long-term loans are pulled down below 30 percent compared to the control target of 40 percent of SBV.
Besides, the results of the implementation of the Restructuring Project in the first six months of the year also continue to be satisfactory, ensuring to follow the general roadmap. The total revenue of recovering, bad debt handling and outstanding assets was over 9.9 trillion dong, meanwhile, more than 2.2 trillion dong was established, allocated in the financial project. As a result, the proportion of unprofitable assets over total assets continued to be dragged down by 1.9 percent compared to the beginning of the year.
