Kienlongbank sets strategic goals for 2021

Kienlongbank has put the settlement of non-performing loans and digital transformation as its top priorities in 2021

Tran Tuan Anh, member of the Board of Directors cum general director of Kienlongbank said that at the end of 2020, the total consolidated assets of the bank reached VND57.282 trillion($2.5 billion), up 12.09 per cent compared to 2019.

Consolidated pre-tax profit of the bank reached VND158.21 billion ($6.9 million), up 84.14 per cent on-year.

Accordingly, Kienlongbank in 2020 aimed to settle loans with collateral shares related to Sacombank’s shares, under the Kienlongbank restructuring and bad debt settlement plan.

However, Anh stated that the COVID-19 health crisis hampering the bank’s plans to handle Sacombank’s shares. As of December 31, 2020, Kienlongbank could only sell a part of its Sacombank’s shares, thus reducing VND369 billion ($16 million) of bad debts.

Hence, the bank could not meet its proposed plans.

From January 1 to January 29, 2021, Kienlongbank continued to sell more debts collateralised with Sacombank’s shares, reducing its bad debts ratio to less than 3 per cent.

Moreover, Kienlongbank nearly completed most of its objectives in its restructuring plan in the 2016-2020 period, which was approved by the State Bank of Vietnam.

The lender also aims to complete the sale of all Sacombank shares and to settle soured loans by March 31, 2021.

In 2021, Kienlongbank will actively accelerate the settlement of debts collateralised with Sacombank’s shares and bring the total bad debts of the bank to less than 2 per cent of its total outstanding loans, limit new bad debts, improve management capacity, and enhance risk management.

Moreover, the bank will focus on non-credit services, upgrade its core banking system, and promote the development of digital banking according to the strategic direction of Kienlongbank in the period of 2021-2025.

At the meeting, the Board of Directors also elected Le Hong Phuong as chairman of Kienlongbank's Board for the term of 2018-2022, taking effect from February 1, 2021, along with three vice chairmen, Mai Huu Tin, Pham Tran Duy Huyen, and Tran Thi Thu Hang.