Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, HoSE: STB) has just announced its financial report for the fourth quarter of 2023 with not very positive results. Accordingly, at the end of the fourth quarter, both the bank's net interest income and non-interest income declined compared to the same period last year. Specifically, Sacombank recorded a 6.8% decrease in net interest income compared to the same period last year to VND5,633 billion.
Net profit from service activities decreased by 33.9% compared to the same period last year to VND586 billion; net profit from other business activities decreased by 67.5% to VND201 billion. Net profit from foreign exchange trading also decreased slightly by 2.2% to VND296.5 billion.
During the period, Sacombank recorded total operating income of VND6,708 billion, down 14.4% year-on-year. Meanwhile, the bank's operating expenses increased to VND3,409 billion, up 28.9% year-on-year. As a result, the bank's net profit from business activities decreased by 36.3% to VND3,299 billion.
However, Sacombank still reported pre-tax profit of VND2,755 billion in the fourth quarter of 2023, up 45%; corresponding after-tax profit reached VND2,259 billion, up 29% over the same period last year thanks to cutting risk provision expenses to VND544 billion, down compared to the same period.
Accumulated for the whole year of 2023, Sacombank recorded net interest income of VND 22,072 billion, up 29% over the previous year. The bank's non-interest income at the end of the year showed inconsistent increases and decreases when net interest income from service activities decreased by nearly 50% to nearly VND 2,618 billion. Net interest income from other activities of the bank decreased sharply from VND 2,745 billion in the previous year to nearly VND 327 billion.
In contrast, the bank's foreign exchange trading profit edged up 3.4% to VND1,099.5 billion. Investment securities trading brought in a profit of VND33.8 billion, while in the same period last year, this segment caused the bank to lose nearly VND20 billion.
The bank's credit risk provisioning costs decreased by 58% compared to the previous year to VND3,688 billion. Thanks to that, Sacombank reported pre-tax profit of VND9,595 billion, up 51%; after-tax profit of VND7,717 billion, up 53% compared to the previous year.
In 2023, Sacombank plans to have a pre-tax profit of VND9,500 billion. Thus, at the end of the year, the bank has exceeded its profit target.
As of December 31, 2023, Sacombank's total assets were recorded at nearly VND 674,400 billion, up 14% over the beginning. Of which, customer loans reached VND 482,700 billion, up 10.1% over the beginning of the period. Customer deposits reached VND 510,700 billion, up 12.3%.
Regarding loan quality, at the end of 2023, Sacombank's total bad debt was VND 10,984 billion, 2.5 times higher than at the beginning of the year. Of which, substandard debt (group 3 debt) increased from VND 561 billion last year to VND 1,490 billion;
Doubtful debt (group 4 debt) increased from VND 731 billion to VND 4,594 billion and debt with the possibility of losing capital (group 5 debt) increased from VND 3,007 billion to VND 4,900 billion. As a result, the ratio of bad debt/outstanding loans increased from 0.98% at the beginning of the year to 2.28% .
Source
Comment (0)