Sacombank to recoup VND20 trillion of bad debts in 2017
The Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) aims to tackle VND20 trillion (US$880 million) of bad debts in 2017, with the bank taking drastic measures to implement a restructuring scheme, said its chairman Duong Cong Minh.
 |
Minh believed that bad debt settlement will be effective due to upbeat signs in the property market, the National Assembly’s legal provisions for bad debts and the bank’s restructuring project.
The bank’s profit before taxes was estimated at VND428 billion (US$18.8 million) in the first half of the year, up 70.4% year-on-year, according to the bank’s report. Its total assets stood at nearly VND353 trillion (US$15.5 billion).
During the first six months, customer lending and capital mobilised from individuals and economic organisations exceeded VND212 trillion (US$9.3 billion) and VND317 trillion (US$13.9 billion), up 10.1% and 9.7% from the outset of the year, respectively.
The bank tackled VND845 billion (US$37.2 million) of non-performing loans in the period and bought back VND247 billion (US$10.9 million) in non-performing loans from the Vietnam Asset Management Company.
Chairman Minh shared the bank’s restructuring scheme, including shaking up bank organisation and human resources and re-arranging transaction networks and branches was based on the strategy “developing rural areas to support urban zones”.
Last month, Sacombank held its annual general meeting of shareholders for the fiscal year 2015-2016. Minh was elected as Chairman of the Board of Directors for the term 2017-2021 and Nguyen Duc Thach Diem as Standing Director General.
