Sacombank’s H1 profit exceeds half of target

July 16, 2013 | 13:25

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Sacombank, a major Vietnamese lender, posted its January-June 2013 before tax profit at 52 per cent of this year’s target.

The Ho Chi Minh City-based bank said it reached VND1.448 trillion ($69 million) before-tax profit in the first half of this year. The total assets exceeded VND159.66 trillion ($7.6 billion), up 5.5 per cent at the end of last year. Sacombank added its non-performing loans now accounted for just 2.46 per cent of total outstanding loans.

The bank currently operates 421 transaction offices across Vietnam and in neighbouring Cambodia and Laos.

The State Bank of Vietnam has approved Sacombank’s plan to increase its charter capital by 17 per cent, from VND10.74 trillion ($511 million) to VND12.425 trillion ($592 million) by issuing shares to pay dividends of 2011 and issuing shares to core staff members.

However, Sacombank is seeking to make another capital increase this year, scheduled for completion by the final quarter.

Fitch Ratings early July maintained the ‘B’ notch in the Long-Term Issuer Default Ratings (IDRs) for 4 Vietnamese banks – Agribank, Vietinbank, Sacombank and Asia Commercial Bank (ACB). The US credit rating agency also reaffirmed the ‘stable outlook’ rate in the IDRs for three of them, excluding ACB with a ‘negative outlook’.

By Tuong Thuy

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