Sacombank recorded a record profit in 2024 when net profit reached VND10,087 billion. Accumulated undistributed consolidated profit by the end of last year reached VND28,426 billion, an increase of more than VND8,000 billion after 12 months.
Sacombank has undergone nearly a decade of restructuring - Photo: STB
Sacombank's (STB) interest and similar income in 2024 decreased compared to the previous year. However, the cost of capital is cheaper when the mobilization interest rate is still low, causing the bank to report higher profits.
Specifically, the recently released financial report for the fourth quarter of 2024 shows that Sacombank's interest income and similar income reached VND12,600 billion, down nearly 8% compared to the fourth quarter of 2023.
However, interest expenses and similar expenses only reached VND6,500 billion, down nearly 20% compared to the same period. Thanks to that, the bank's net income from interest reached VND6,099 billion, up 8%.
In addition, service income also increased by 20%, bringing Sacombank VND1,725 billion. Another positive point is that operating expenses decreased by nearly 8%, to VND3,150 billion.
Not to mention, 367 billion VND of credit risk provisions were also refunded. As a result, Sacombank's after-tax profit in the last quarter of the year reached 3,598 billion VND, an increase of nearly 60% compared to the fourth quarter of 2023.
Accumulated for the whole year of 2024, Sacombank recorded net interest income of VND 24,531 billion, up 11% over the previous year. Total pre-tax profit exceeded VND 12,720 billion, up 32.5% over the previous year, and after-tax profit was VND 10,087 billion, up nearly 31%.
The above profit level sets a record in Sacombank's business journey. Thanks to that, the bank's undistributed profit increased to VND 28,426 billion, an increase of nearly 40% compared to the end of 2023.
Sacombank's consolidated profit after tax - Data: Financial statements, TTO
The fact that Sacombank has not paid dividends for 9 consecutive years despite the huge amount of retained earnings has made many shareholders worried every time the general meeting of shareholders is held. There have even been opinions that Sacombank is deliberately "holding" dividends.
In the annual report published in early 2024, Ms. Nguyen Duc Thach Diem - General Director of Sacombank, said: "Sacombank understands that the prolonged non-payment of dividends in the past time has more or less created an unhappy sentiment among shareholders."
However, according to Ms. Diem, in reality, Sacombank is a restructuring bank, so dividend distribution, no matter in what form, must be approved by the State Bank.
At the 2024 annual shareholders' meeting, Mr. Duong Cong Minh, Chairman of the Board of Directors of Sacombank, said that Sacombank must recover its charter capital and reduce bad debt to below 3% to be eligible for dividend payment.
"According to the law, the charter capital must be returned to be successfully restructured. We have finished handling Phong Phu Industrial Park and sold the debt. They have paid half of the debt purchase amount.
Currently, the important thing is to return charter capital and handle bad debt. The debt related to Mr. Tram Be must wait for the Government's permission.
If the capital is recovered, Sacombank will complete restructuring this year," Mr. Duong Cong Minh told shareholders.
How much will Sacombank's outstanding loans increase in 2024?
Among the individuals holding STB shares, Mr. Minh holds more than 62.56 million units, equivalent to 3.32% of the bank's capital, according to the management report for the first 6 months of 2024.
Ms. Nguyen Duc Thach Diem - General Director of Sacombank, only holds 76,320 shares, equivalent to 0.004% of the bank's capital.
Total assets of the bank chaired by Mr. Duong Cong Minh as of the end of 2024 reached VND 748,094 billion, an increase of 11% over the beginning of the year.
Of which, outstanding loans to customers reached VND539,314 billion, up nearly 12% compared to the beginning of the year. Customer deposits increased by 11%, reaching VND566,881 billion.
Source: https://tuoitre.vn/9-nam-khong-chia-co-tuc-loi-nhuan-giu-lai-sacombank-gan-28-500-ti-sau-lai-ki-luc-20250125211725487.htm
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