Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has published the consolidated financial statement in the first quarter (Q1) 2020, recording a seven percent decline in pre-tax profit over the same period of 2019, reaching 988 billion dong.
The profit decline of Sacombank was mainly due to the sharp reduction in income from other activities and a surge in operating expenses.
Particularly, the main businesses of the bank were still reportable. In which, the net interest income in Q1 was 2.840 trillion dong, up by 15.5 percent over the same period of 2019, while the profit from service activities increased by 12.3 percent to 721 billion dong. The profit from foreign exchange trading of Sacombank rose by 106 percent to 233 billion dong.
Meanwhile, the bank’s profit from other activities sharply fell by 76.6 percent over the same period of last year to only 71 billion dong. Previously, Sacombank’s profit from other activities in Q1 2019 mainly came from the settlement and recovery of bad debts.
While the Q1 total operating income of Sacombank grew by 9.7 percent to 3.833 trillion dong, its operating costs rose by 21 percent to 2.478 trillion dong, in which spending for employees increased by 10 percent to 1.279 trillion dong.
Sacombank’s provisioning costs in Q1 2020 slightly dropped by three percent over the same period of 2019 to 417 billion dong. Accordingly, the bank’s Q1 pre-tax profit declined by 6.9 percent to 988 billion dong.
By the end of March, Sacombank’s total assets were 459.076 trillion dong, up by 1.21 percent compared to the beginning of the year. The outstanding loans to customers increased by 3.47 percent to 306.299 trillion dong, while capital mobilisation increased by 1.21 percent to 405.709 trillion dong.
The off-balance sheet bad debts were 6.046 trillion dong, up by over 300 billion dong compared to the beginning of the year. The bank’s bad debts on total outstanding loans also increased 1.94 percent to 1.97%.
