Saigon Bank (SCB) has just released its audited financial statements for 2020.
Accordingly, SCB’s total assets in 2020 reached VND 632,648 billion, an increase of more than 11% compared to 2019, continuing to maintain the position of Top 5 commercial banks with the largest total assets, leading in the group of out-of-state commercial banks.
SCB said that, during the audit process, the Bank has reviewed and reassessed all customers’ debts affected by Covid-19, to ensure the suitability and prudence according to the Circular. 01/2020 / TT-NHNN and Circular 03/2021 / TT-NHNN.
As a result, after the review, SCB’s NPL ratio was 2.34% – still within the limit of the State Bank of Vietnam (SBV) of 3%. The debt reclassification made the Bank’s net interest income decreased by 962 billion dong, reaching 3,411 billion dong; Profit before tax decreased by 624 billion VND, reaching 34 billion VND. The application of the principle of prudence in reassessment of credit quality also ensures the rigidity, increases safety for the Bank in the context of the highly complicated Covid-19 epidemic.
One of the solutions allowed by the State Bank of Vietnam during the restructuring period is to be allowed to make provisions for risks according to financial capacity. Therefore, during the audit process, SCB cooperated with the independent auditing company to review and adjust the cost of provisioning in accordance with the SBV’s approval and SCB’s financial capacity.
For the whole year 2020, the total cost of provision for credit losses of SCB is 1,338 billion dong, the balance of the reserve fund is more than 12,878 billion dong, this is the accumulated financial source, after completing the handling of bad debts, SCB will be reimbursed for the deducted expenses, helping to improve the Bank’s income and profit.
SCB has made strong changes in service activities, making a great contribution to SCB’s total operating income. SCB’s total post-audit operating income reached VND 5,686 billion, with major contributions from services, Government bonds and foreign exchange trading. SCB’s net income from services reached 1,775 billion dong, annual growth rate of over 40%, always in the top group of commercial banking system. In 2020, SCB continues to maintain its position in the leading group of Bancassurance market with sales up to nearly 1,200 billion VND and hold position in the Top 5 market makers of Government bond trading market.
Entering the year 2021, taking advantage of existing development momentum and strengths, together with strategic advice from McKinsey partners, SCB continues to strengthen Bancassurance activities, focusing on digital transformation, creating a boost to technology follows the trend of the market. In the first quarter of 2021, SCB’s service fee collection reached more than VND419 billion, an increase of 156% over the same period last year. Foreign exchange business, Government bond business reached 419 billion VND, increased 158% over the same period last year.
Recently, on the basis of the approval of the State Bank of Vietnam and the State Securities Commission, SCB officially announced to issue an additional 500 million shares to increase its charter capital by VND 5,000 billion and is expected to be completed within the month. 6/2021. The capital increase will help SCB continue to strengthen its financial capacity and improve operational safety.
Source: bizlive.vn – Translated by fintel.vn