The 2023 Sacombank Shareholders’ Meeting was attended by 1,329 shareholders, representing over 65% of the voting rights. At the Meeting, shareholders approved the following: the 2023 operating results and 2024 targets and objectives; the audited separate and consolidated financial statements for 2023; the 2023 profit distribution plan and the 2024 profit distribution plan; the 2024 remuneration for the Board of Directors and the Supervisory Board; and other important matters related to governance, operations, and investments. The Meeting also agreed to appoint 5 members to the Supervisory Board for the 2022-2026 term and instructed the Board of Directors to complete the necessary procedures in accordance with regulations.
2023 Sacombank Shareholders’ Meeting.
In 2023, pre-tax profit reached VND 9,595 billion, up 51.4%, with many targets exceeding expectations.
The 2023 operating results show that Sacombank has achieved most of the targets set by the Shareholders’ Meeting, with many exceeding expectations: Pre-tax profit reached VND 9,595 billion, up 51.4%; return on assets (ROA) and return on equity (ROE) were 1.22% and 18.3%, respectively, up 0.31% and 4.47%, respectively, much higher than in 2022; total assets reached VND 674,390 billion, up 13.9%, of which income-generating assets increased by 14.3%, accounting for 89.6%; charter capital of VND 18,852 billion; total mobilized capital reached VND 578,029 billion, up 11.3%, of which 90.8% came from the tier 1 market, and accounted for 3.9% of total deposits in the industry; total outstanding credit balance reached VND 482,731 billion, up 10.0%, accounting for 3.5% of the industry’s market share; overall bad debt decreased by 0.16%, the ratio of on-balance sheet bad debt was 2.1%, up 1.18% compared to the beginning of the year in the context of increased credit risk and deteriorating customers’ repayment capacity; and safety ratios ensured compliance with regulations.
Presiding over the 2023 Sacombank Shareholders’ Meeting.
Ms. Nguyen Duc Thach Diem, Standing Vice President and CEO of Sacombank, speaking at the Meeting.
Ms. Nguyen Duc Thach Diem, Standing Vice President and CEO of Sacombank, said: “Sacombank is currently implementing a Post-merger Restructuring Project, with the remaining issue related to the plan for handling Mr. Tram Be’s shares. Sacombank has submitted a detailed plan to the State Bank of Vietnam (SBV) and is awaiting approval. The source for dividend distribution is ready with undistributed profits reaching nearly VND 18,400 billion, equivalent to nearly 100% of charter capital, and will continue to increase in the coming time. Therefore, shareholders’ interests are still protected. The Board of Directors fully understands the wishes of shareholders and is working hard with the SBV for dividend distribution. Although no dividends have been distributed yet, Sacombank’s share price has increased significantly in the recent past, which has partially compensated shareholders.”
Ms. Diem also added that Sacombank has successfully auctioned off the debt of the Phong Phu Industrial Park project, recovering 20% of the value. The successful bidder will continue to make payments to Sacombank as the project’s legal documents are completed.
By significantly reducing the proportion of troubled assets, Sacombank’s credit rating has been restored by Moody’s to the level prior to the merger.
In 2023, Sacombank recovered and disposed of VND 7,941 billion of bad debt and troubled assets, of which VND 4,487 billion was under the Project, reducing the proportion of this item in total assets to 3%. Thus, in the 7 years of implementing the Project, it can be seen that Sacombank’s attitude towards bad debt treatment is very urgent and positive. From the initial figure of 28.1% in 2016, Sacombank has now drastically reduced the proportion of troubled assets to total assets to only 3%. Sacombank has also made full provision for risk in accordance with regulations. The total provision balance is currently VND 25,099 billion, up 10.4%, of which the provision for loans has increased by 34.3%, completing 100% for the entire loan portfolio sold to VAMC. Based on these results, Moody’s has restored Sacombank’s credit rating to the level prior to the merger. Specifically, the organization has upgraded Sacombank’s credit rating from B3 to B2 and updated the rating from Caa1 to B3 for the baseline credit assessment (BCA) and adjusted BCA categories.
Active digital transformation helps Sacombank surpass the 18 million customer mark, with transaction volume through digital channels increasing by 51%.
In terms of operating efficiency, Sacombank is actively promoting digital transformation in retail and operational processes. The bank has taken the lead in cooperating with domestic and foreign partners to implement various new payment methods, while applying AI in customer care and enhancing customer experience. In response to the government’s and the SBV’s policies, Sacombank has proactively implemented many loan packages with preferential interest rates. The bank has also implemented many consumer stimulus programs with a total value of up to VND 131,500 billion. As a result, the brand reputation has been enhanced, and customer loyalty has increased. The number of customers has exceeded 18 million; the number of online users has reached 8.9 million, an increase of 19.8%; and the number of successful transactions through digital channels has reached 508 million, an increase of 51%.
In 2024, Sacombank sets a target of “Accelerating business activities, improving efficiency on digital platforms” with financial indicators increasing by 10% or more.
In the context of macroeconomic challenges, but with its strong internal resources, robust digital transformation strategy, and its status at the end of the restructuring journey, Sacombank is confident in setting a target of “Accelerating business activities, improving efficiency on digital platforms” for 2024, with financial indicators expected to grow by 10%. Accordingly, pre-tax profit will reach VND 10,600 billion, total assets will increase to VND 724,100 billion, total mobilized capital will reach VND 636,600 billion, total outstanding credit balance will reach VND 535,800 billion, and bad debts will be controlled below 2%, with all limits and ratios ensuring safe operations in accordance with the SBV’s regulations.
Ms. Diem said that Sacombank has chosen the path of digital transformation from an outside-in and inside-out perspective. From there, Sacombank focuses on the following issues: 1) Upgrading the customer experience; 2) Building an open banking ecosystem through API; 3) Solving the problem of applying big data and artificial intelligence (AI) to understand customers better; 4) Building a culture of digital transformation and innovation and adopting new working methods in implementing ideas; 5) Investing in cloud computing technology and security; and 6) Digitizing business processes from beginning to end. Sacombank’s customer goal for 2024 is to reach the 20 million mark, and each customer must be a quality, loyal customer with a great experience
