According to the latest information of Sai Gon Joint Stock Commercial Bank (SCB), the capital mobilisation of the bank from individuals and economic organisations reached 528.72 trillion dong, 40.013 trillion dong, equivalent to a stable growth of 8.2 percent compared to the beginning of the year. Meanwhile, the credit scale was 344.033 trillion dong, an increase of 3.04 percent compared to December 31, 2019.
Business results in the first six months recorded positive results from non-credit activities with profit of over 300 billion dong from securities and foreign exchange trading and net income of 618 billion dong from service activities. By the end of June 30, 2020, SCB’s total assets reached 598.412 trillion dong, maintaining the leading position among non-state banks in terms of total operation scale.
SCB’s service activities have grown steadily in recent years, reflecting the restructuring strategy with the goal of reducing the dependence on traditional credit activities.
In the personal financial services provided to customers, SCB made a great impression in the market with the strong growth of Bancassurance activities. Recently, SCB has always been one of the top the banks with the highest insurance sales turnover in the market. For credit activities, SCB is affected by the Covid-19 pandemic, leading to the slightly higher percentage of overdue and bad debts compared to the beginning of the year. However, the ratio is still within the allowed limits, 1.23 percent and 0.67 percent respectively.
Regarding business results, SCB only saw a modest profit of 28.9 billion dong in the first six months because the bank prioritised provisioning credit risk. Specifically, SCB has set aside 2.174 trillion dong of credit risk provisions, raising the total risk reserve fund to nearly 14 trillion dong, this is a financial provision buffer, making the bank’s business operations stable in the future.
Also in the second quarter of 2020, the Annual general Meeting of shareholders of SCB approved the increase of charter capital to five trillion dong, to 20.231 trillion dong. Information from the bank said that SCB was promoting the issuance of 500 million shares to existing shareholders, domestic and foreign investors.
According to SCB, in the immediate future, the capital increase this time is to supplement fung and financial capacity in the context that the whole credit institution system is urgently meeting capital requirements under Basel II. At the same time, in the long term, SCB is still seeking suitable foreign investors and strategic partners to join in restructuring the bank and implementing long-term goals.
