TIẾNG VIỆT Sacombank to resolve $473mln bad debt in 2020, profit projected to fall 20%
As of 2019, Sacombank resolved a total accumulated bad debts at $1.65 billion and is expected to resolve an additional $473 million this year. Photo: CafeF
In 2019, the bank resolved over VND18,400 billion ($791 million) bad debt, bringing the total accumulated resolved bad debts to VND38,346 billion ($1.65 billion).
Sacombank, which is under the restructuring process, expects 2020 pretax profit to fall 20% from a year ago to VND2,573 billion ($111 million), largely due to the impacts from COVID-19 pandemic, said chairman Duong Cong Minh.
The lender which received complaints from shareholders for not giving dividend targets total assets by the end of 2020 to reach VND498,400 billion ($21.4 billion), up 10% from end-2019 while total mobilized capital expected to reach VND457,200 billion ($19.7 billion).
Credit is projected to grow 11% to VND329,400 billion ($14 billion) and bad debt is controlled below 3%, bank’s leaders said.
After nearly 3 years of implementing the restructuring process, the lender’s business performance has improved significantly. The number of customers increased by 62%, 2019 total assets increased averagely 11% to VND432,000 billion ($18.7 billion), said Chairman Duong Cong Minh.
In 2019, pretax profit increased to VND3,217 billion ($138 million) from VND156 billion ($6.7 million) in 2016, he said, adding that the bank had to lower 2020 profit target due to the coronavirus pandemic.
