Sacombank vows to finish settling bad debts in five years
The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has pledged to finish settling all of the VND100 trillion (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.
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| Sacombank has pledged to finish settling all of its bad debts in five years |
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 VND368.45 trillion (US$16.14 billion) at the end of 2017, up 11% from the year’s beginning. The bank posted an 11% rise in capital mobilisation to some VND338.43 trillion (US$14.82 billion) and a 12.5% increase in credit outstanding balance to around VND225.59 trillion (US$9.88 billion). The ratio of non-performing loans was 4.59%.
The bank plans to cut the bad debt ratio to under 3% and continue to shorten the restructuring road map in the time ahead.
In 2018, it targets total assets at VND430.9 trillion (US$18.87 billion), mobilised capital at VND399.5 trillion (US$17.5 billion), credit outstanding balance at VND255.2 trillion (US$11.18 billion), and pre-tax profit at nearly VND1.84 trillion (US$80.59 million).
