Saigon Industrial and Commercial Joint Stock Bank (Saigonbank) just released the consolidated financial statements for Q3/2019. Notably, in Q3, the bank recorded a sudden increase in profit before tax, reaching 132 billion dong, 13 times over the same period.
The reason for the sudden increase in business results in Q3 was that net profit increased sharply by 57 percent to 143 billion dong, while provision expense dropped dramatically by 86 percent, to 11 billion dong. During the period, Saigonbank’s net interest income reached 210 billion dong, increased by 36 percent. Service activities made a profit of 12 billion dong, equivalent to the same period. The profit from foreign exchange trading was only 1 billion dong; profit from other operations reached 30 billion dong, increased by 20 percent.
In the first nine months, Saigonbank’s Earnings Before Taxes (EBT) was 221 billion dong, increased by 81 percent, net profit reached 198 billion dong, doubled the same period. In general, the surge in SaigonBank’s profit in the first nine months was mainly due to a sharp reduction in provision expenses, even though the business segment had unprofitable profit results, also decreased over the same period.
By the end of September, the bank’s internal bad debt was 294 billion dong, fell slightly by 7 billion dong compared to the beginning of the year. Accordingly, the bank’s non-performing loans (NPL) ratio decreased from 2.2 percent to 2.03 percent. In the structure of bad debts, the group of five debtthe potential loss of Saigonbank’s capital amounted to 211 billion dong, accounting for 72 percent of the total bad debt.
The report also said that the number of Vietnam Asset Management Company (VAMC) individual bonds that Saigonbank still held was 885 billion dong, fell compared to 1.133 trillion dong at the beginning of the year. In particular, special bond provision was 130 billion dong.
Saigonbank was a small bank. By the end of September, the bank’s total assets were 22.077 trillion dong, rising by 8.4 percent compared to the beginning of the year. In which, customer loan balance increased by 6.2 percent to 14.512 trillion dong. Customer deposits increased only slightly by 0.2 percent to 14.701 trillion dong.
