The transfer of power
Mr. Vu Quang Lam was born on September 5, 1969, with a PhD in Economics and a Master's degree in Political Theory and Administration.
From September 1990 to June 1992, Mr. Lam was an accountant at District 1 Housing Development Company. From 1992 to 2017, he held the positions of Deputy Head of Planning Department of Tan Thuan Export Processing Enterprise;
Specialist of Investment and Repair Department, Deputy Head of Budget Department, Head of Investment and Repair Department - Ho Chi Minh City Department of Finance, Deputy General Director of Ho Chi Minh City State Financial Investment Company.
From April 2017 to present, Mr. Lam has held the position of capital representative of Phu Nhuan Construction and Housing Trading One Member Co., Ltd.
Chairman of Saigonbank Board of Directors Vu Quang Lam.
From June 2017 to June 2018, Mr. Lam was a member of the Board of Directors, representative of capital contribution management of shareholders of Phu Nhuan Construction and Housing Trading One Member Co., Ltd., and General Director of Saigon Joint Stock Commercial Bank for Industry and Trade (Saigonbank - UPCoM: SGB).
From June 2018 to October 2019, Mr. Lam was a member of the Board of Directors, taking on the role of Chairman of the Board of Directors of Saigonbank in place of Mr. Pham Van Thong.
Mr. Pham Van Thong used to be Deputy Chief of Office of Ho Chi Minh City Party Committee, and has only been in the "chair" of SaigonBank Chairman for less than 1 year (since June 2017) replacing Mr. Tran Quoc Hai.
However, later, according to the announcement of the Ho Chi Minh City Party Committee's Inspection Committee, Mr. Thong, Chief of Office Ms. Thai Thi Bich Lien and many other leaders of the Ho Chi Minh City Party Committee were disciplined for violations.
In October 2019, Mr. Lam officially held the position of Chairman of the Board of Directors of Saigonbank and has held the position since then.
Along with personnel changes, major shareholders of Saigonbank have also left one after another. Bien Hoa Electronics Joint Stock Company (Belco) has registered to auction all of nearly 1.5 million Saigonbank shares (equivalent to 0.49% of charter capital) in early 2020. Two banks, Vietcombank and VietinBank, have also gradually divested capital and then divested all of their capital.
According to the management report for the first 6 months of 2024, the Ho Chi Minh City Party Committee Office currently holds 61.6 million SGB shares, equivalent to 18.18% of capital, and Phu Nhuan Construction and Housing Trading One Member Co., Ltd. holds nearly 56.4 million shares, equivalent to 16.64% of the bank's capital.
Saigonbank goes slow, is it sure?
About Saigonbank, this is introduced as the first bank established in the current joint stock banking system in Vietnam, established in 1987 with initial charter capital of 650 million VND.
As mentioned in the article "Saigonbank is preparing to move to the listing floor, what does it have in its hands?" , although it was established early, Saigonbank's charter capital is currently among the lowest among 28 commercial banks. At the same time, the increase in charter capital of this bank is also quite slow.
Regarding the business situation, the hot seat has just changed hands. In the audited consolidated financial report for the first 6 months of 2018 of Saigonbank, it showed that the business performance indicators of the first half of the year of this bank were quite gloomy. Most of the indicators were quite negative.
Total consolidated assets as of June 30, 2018 were VND 20,724 billion, down 3% compared to the beginning of the year, customer loans and total deposits both decreased.
Another notable indicator of this bank is that bad debt has increased beyond the 3% threshold prescribed by the State Bank to 6.46%.
Specifically, group 3 debt (substandard debt) increased 8 times from 25 billion to 200 billion, group 4 debt (debt requiring attention) increased 3 times from 77 billion VND to 237 billion VND, group 5 debt (debt with potential loss of capital) increased 45% to 458.8 billion VND.
At the end of 2018, Saigonbank reported a net profit of only nearly VND42 billion, down 24% compared to the previous year. By 2019, the situation was more positive when the bank reported a profit after tax that increased 3.5 times compared to the previous year to nearly VND145 billion.
This profit result mainly comes from the bank's drastic reduction of credit risk provisioning costs by 1.7 times to VND197 billion. By 2020, Saigonbank's profit had decreased by 1.5 times compared to the previous year to VND97 billion.
In 2021, the bank's profit will return to over 100 billion VND and reach 267 billion VND by the end of 2023.
Saigonbank's total assets have also grown steadily over the years, but there has been no breakthrough growth. By the end of 2023, the bank's total assets stood at VND31,501 billion.
Compared to PGBank with the same charter capital, by the end of 2023, this bank's total assets were at VND 55,491 billion or unlisted BaoVietBank had total assets of VND 84,645 billion.
At the end of the second quarter of 2024, Saigonbank recorded net interest income of nearly VND 225 billion, down 7% over the same period.
All business segments showed a decline while operating expenses increased by 6% year-on-year to VND142 billion, leading to a 9% decrease in the bank's net operating profit to VND120 billion.
Thanks to the bank's credit risk provisioning cost being reduced by 2.45 times compared to the same period to nearly VND22 billion, Saigonbank reported a 24% increase in pre-tax profit compared to the same period to VND98 billion; after-tax profit correspondingly increased by 45.8% to nearly VND70 billion.
In the first 6 months of 2024, Saigonbank recorded net interest income of VND 409 billion, down 11.85%. The bank earned net pre-tax profit of VND 166 billion; corresponding after-tax profit reached VND 133 billion, down 9.55% compared to the first 6 months of 2023.
As of June 30, 2024, Saigonbank's total assets were recorded at VND 32,413 billion, up slightly by 2.8% compared to the beginning of the year. Customer loans were VND 20,121 billion, up slightly by 1.7% compared to the end of 2023.
Regarding loan quality, at the end of June 2024, Saigonbank's total bad debt was over VND519 billion, up 28% from VND404 billion at the beginning of the year. As a result, the bad debt/loan balance ratio increased from 2.03% last year to 2.55%.
There was a time when the bank's bad debt was below 2%. In 2019, Saigonbank's total bad debt was VND256 billion, a ratio of 1.76%. By 2020, the bank's bad debt had decreased to VND223 billion, a ratio of 1.44%.
In 2021, the bank's bad debt ratio will remain at only 1.97% and will officially exceed 2% by the end of 2022.
Notably, in addition to the bad debt on the balance sheet, in 2019, Saigonbank still had 570 billion VND in special bonds issued by VAMC and 522 billion VND in 2020. In 2022, the value of the above bonds increased to 603 billion VND.
However, by 2023, this level had dropped sharply by 2.9 times to VND 206 billion and by the end of the first 6 months of 2024 had decreased to more than VND 199 billion.
Source: https://www.nguoiduatin.vn/saigonbank-ra-sao-duoi-su-cheo-lai-cua-thuyen-truong-vu-quang-lam-204240830184653723.htm
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