Vietnam Sacombank Makes US$20.6M Profit in Q1 on High Lending

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), the second biggest listed bank in Vietnam, earned a pretax profit of VND350 billion (US$20.6 million) in the first quarter of this year, said Sacombank’s General Director Tran Xuan Huy.

 

Credit activities contributed 65 per cent to the bank’s total income, while services accounted for 13 per cent.

 

Sacombank’s total deposit reached VND62.2 trillion and outstanding loans VND39.4 trillion, a rise of 17 per cent both since the beginning of this year.

 

The HCM City-based lender said it is likely to surpass the profit target of VND1.6 trillion in 2009 as its lending growth may exceed 50 per cent while high-cost capital borrowings of last year has been settled, Huy said.

 

By end-March, Sacombank lent a total of VND8.1 trillion worth of subsidized loans under the government’s demand stimulus package. It is also negotiating with foreign financial institutions to seek more medium- and long-term fund to support local enterprises and individuals, Huy noted.

 

This year, the bank projects total deposits of over VND83 trillion, total outstanding loans of VND50 trillion and total assets of VND95.5 trillion, up 42 per cent, 50 per cent and 41 per cent, respectively.

 

Sacombank, which lists on the country’s main exchange, plans to raise its capital size by 31 per cent this year to VND6.7 trillion by issuing shares to exiting shareholders.

 

STB shares closed up 4.8 per cent at VND19,800 on April 10. (Banking Times, Vneconomy)