In the report submitted at the recent 2020 Annual general Meeting (AGM), the Board of directors of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) mentioned that in the context when the global economy is fluctuating in a negative direction in 2020, particularly under the impact of the Covid-19 pandemic right from the early days of the year, the banking industry will also face many difficulties and challenges.
Accordingly, Sacombank targets a pre-tax profit of 2.573 trillion dong in 2020, down by 20 percent compared to the previous year. The bank’s total assets are expected to reach 498.4 trillion dong, up by 10 percent compared to 2019. Total mobilisation is set at 457.2 trillion dong, up by over 10%. In particular, the mobilisation from economic organisations and the population is expected to be 452.4 trillion dong, up by 10%.
Sacombank targets to expand the total outstanding credit by 11 percent to 329.4 trillion dong.
Although the Covid-19 pandemic situation remains complicated and poses many potential risks, in the case when the disease is better controlled than expected, Sacombank’s BOD will adjust the profit target in 2020 to be similar to 2019′s profit.
In the first quarter (Q1) of 2020, despite the Covid-19 pandemic, Sacombank’s credit still recorded a net interest income growth of up to 15.5 percent over the same period of last year, reaching 2.839 trillion dong. Meanwhile, service segment brought about 721 billion dong of net profit, up by 12.3%. The bank’s foreign exchange trading achieved 232 billion dong of net profit, doubling the same period of last year. Other activities only recorded a modest net profit of 71 billion dong in the quarter, down by up to 76.6%.
By the end of the quarter, the total operating income of Sacombank was 3.883 trillion dong, up by 9.6 percent compared to Q1 2020. However, due to the sharp increase of nearly 21 percent in operating expenses, the bank’s net profit declined by 5.8 percent to 1.405 trillion dong. After deducting provisioning expenses, Sacombank’s Q1 pre-tax profit was 987 billion dong, down by 6.9 percent over the same period of last year.
By the end of March 31st 2020, the total assets of Sacombank were 459.076 trillion dong, up by 1.2 percent after three months. The outstanding loans were 306.702 trillion dong, up by 3.5%, higher than the average level of the industry (1.1%).
The total receivables and accrued interests of the bank were fairly high at over 39.4 trillion dong, accounting for 8.6 percent of the total assets.
Regarding capital source, Sacombank’s equity by the end of March 31st 2020 was 27.546 trillion dong, up by three percent over the beginning of the year. Customer deposits were 405.709 trillion dong, up by 1.2%.
