|SCB successfully holds Annual General Meeting of Shareholders 2020 |
In 2021, due to the negative impact of the COVID-19 pandemic, SCB had no choice but to postpone the meeting several times.
Business performance in 2020
In the past year, SCB’s business activities continued to grow, especially with outstanding outcomes in treasury trading and service activities with total non-interest income (including net income from services, forex trading, securities trading, capital contribution, and share purchases) reaching VND2.69 trillion ($116.96 million), an increase of VND761 billion ($33.1 million) and a growth rate of 39.3 per cent compared to 2019. Accordingly, net profit from services hit VND1.99 trillion ($86.5 million), up 40.43 per cent compared to the previous year, accounting for 73.9 per cent of total non-interest income.
Key services such as cards, e-banking, insurance, and international payment went on thriving and made significant contributions to service revenue. In addition, treasury and forex trading, still at the top of their game, had a favourable effect on the bank's operating income. As of December 31, 2020, the total assets of SCB were VND633.79 trillion ($27.56 billion), deposits and borrowings from customers were VND577.82 trillion ($25.1 billion), and gross loans to customers were VND351.38 trillion ($15.27 billion).
Deposit products have always been one of SCB’s strengths. In 2020, SCB’s capital mobilisation witnessed a growth rate of 18.38 per cent. At the same time, in 2020, SCB continued focusing on credit growth with prudential policies, restructuring loans to medium and long terms, enhancing the proportion of profitable assets in the balance sheet. The bank also paid attention to promoting credit activities toward streamlining procedures, diversifying targets, aiming at customers’ needs.
|Bui Anh Dung, chairman of the Board of Directors of SCB presented the Report of the Board of Directors in 2020 and the orientation for governance in 2021 |
In 2020, overdue debts and bad debts were reported to swell compared to the end of 2019 as SCB reviewed and re-evaluated all customers’ debts affected by COVID-19. However, the rates of overdue and bad debts were still within the limits set by the State Bank of Vietnam, at 2.69 per cent and 2.34 per cent, respectively. At the same time, SCB also strengthened risk management mechanisms, pushing the process of debt settlement and recovery.
During the year, SCB prioritised using resources to make provisions for credit losses with the total amount as VND1.34 trillion ($58.26 million) and for other assets with VND99.6 billion ($4.33 million). The provisions were set aside from accumulated financial sources in debt settlement activities. After completing bad debt settlement, there would be promising income and profit to the bank from the recovery of such deducted expenses. As of December 31, 2020, total risk provision of SCB came to VND12.91 trillion ($561.3 million).
Business performance in 2021
The meeting unanimously approved SCB's business plan in 2021 with the main objectives of focusing on implementing restructuring solutions, business development strategies, streamlining organisational structure and personnel, prioritising business development, and improving operational governance.
Thanks to the flexibility in implementing business plans, accumulated to the third quarter of 2021, SCB’s pre-tax profit was VND784 billion ($34.1 million). Non-credit activities such as services, forex, and securities trading achieved impressive results with an accumulated operating income of VND3.95 billion ($171,740). SCB’s insurance services in the first nine months earned more than VND900 billion ($39.13 million), affirming its leading position in the market.
As of September 30, 2021, SCB’s total assets got to VND673.28 trillion ($29.27 billion), mobilisation from customers came to VND605.47 trillion ($26.3 billion) and credit balance reached VND352.91 billion ($15.34 billion). Amidst the COVID-19 crisis, the bank’s credit quality was still strictly controlled with the bad debt and overdue debt ratios of 1.04 and 1.71 per cent, respectively, remaining below 3 per cent in compliance with regulations of the State Bank.
Bracing for the new normal amid the pandemic, on October 6, 2021, SCB officially launched the project named “Internal assessment of capital adequacy – ICAAP” consulted by PwC Vietnam. This is a strategic project expected to help SCB optimise financial management by ensuring the harmony between the three factors of profit, risk, and capital management according to international practices.
At the meeting, shareholders agreed to the resignations of three members of the Board of Directors (Dinh Van Thanh, Vo Tan Hoang Van, and Nguyen Van Thanh Hai), tenured 2017-2022 due to personal reasons. The Board has been conducting the bank’s conventional voting procedures for alternative members.
|Truong Khanh Hoang, general director of SCB answered questions from shareholders |