Sacombank vows to finish settling bad debts in five years

16:04 | 26/04/2018 Economy

The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has pledged to finish settling all of the 100 trillion VND (US$4.38 billion) of its bad debts in five years, instead of 10 years as stated in the restructuring plan approved by the State Bank of Vietnam.

Sacombank has pledged to finish settling all of its bad debts in five years - Photo: VNA

At the annual shareholders’ meeting in Ho Chi Minh City on April 20, Chairman of Sacombank’s board of directors Duong Cong Minh said the bank has handled nearly 20 trillion VND (US$876 million) of the bad debts so far.

Over the last couple of years, Sacombank did not give dividend payments to its shareholders because it was being restructured and had to increase provisions, he said, noting that it is speeding up restructuring and expects this process will finish in three years in minimum and five years in maximum.

If this process is smooth, Sacombank is able to pay dividends to its shareholders in 2018 or 2019, with the central bank’s approval, he added.

Sacombank reports that its combined assets were worth about 368.45 trillion VND (US$16.14 billion) at the end of 2017, up 11 percent from the year’s beginning. The bank posted an 11-percent rise in capital mobilisation to some 338.43 trillion VND (US$14.82 billion) and a 12.5-percent increase in credit outstanding balance to around 225.59 trillion VND (US$9.88 billion). The ratio of non-performing loans was 4.59 percent.

The bank plans to cut the bad debt ratio to under 3 percent and continue to shorten the restructuring road map in the time ahead.

In 2018, it targets total assets at 430.9 trillion VND (US$18.87 billion), mobilized capital at 399.5 trillion VND (US$17.5 billion), credit outstanding balance at 255.2 trillion VND (US$11.18 billion), and pre-tax profit at nearly 1.84 trillion VND (US$80.59 million).

Theo VNA