Reporting at the annual general meeting of shareholders on 5/6/2020, Nguyen Duc Thach Diem, general director of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank), informed about the results of implementing this bank restructuring project in 2019 the third year conducting the scheme.
Accordingly, profitability ratios improved significantly compared to before restructuring, such as return on equity (ROE) increased by 27 times in 2016; return on assets (ROA) increased by 23 times; net income margin (NIM) increased by 1.5 times. The bank had set aside nearly 4.4 trillion dong, accumulated from the project implementation time 6.2 trillion dong to handle assets balance, 158.9 percent higher than the schedule.
Furthermore, Sacombank had actively recovered and handled bad debts and minimised unprofitable assets. Specifically, the revenue of debt collection and settlement in 2019 alone reached 18.4 trillion dong, of which the project was more than dong 12.4 trillion dong, bringing the total accumulated debt recovery and debt settlement to 38.346 trillion dong. Outstanding assets decreased by 35.6 percent compared to 2016, currently accounted for only 13.8 percent of total assets. Capital adequacy ratios were controlled under the State Bank of Vietnam (SBV) regulations.
In addition to the achievements, Sacombank also had some shortcomings, such as business scale and credit had not reached the high growth rate as in the scheme due to restrictions on credit growth targets as prescribed by SBV. Sacombank had to balance the capital and total assets following the capital use demands. The progress of debt recovery and settlement in the project was not consistent with the current situation due to the dependence on the real estate market and the legal problems with collateral that had not been solved.
