This is the first year Fitch has assessed Sacombank and the results have demonstrated the bank's continuous improvements in the restructuring process and its continued affirmation of its position in the domestic and international markets.
Vietnam's economy grew by 6.4% in the first half of 2024, after reaching a positive 5.1% in 2023. The recovery of the world economy and effective solutions for the domestic real estate market will create momentum for Vietnam's economic growth, which Fitch predicts will fluctuate around 7% in the medium term. This is a favorable condition for the operations of the banking industry in general and Sacombank in particular.
Customers learn about banking services at Sacombank
According to Fitch, Sacombank's asset quality score is 'b+'/stable. Its mobilization and liquidity scores are 'bb-'/stable. The loan portfolio structure is expanded to serve production and business and stimulate consumption, so the risk portfolio score is 'b+'/stable. Sacombank's equity and profitability will improve significantly in the coming years when the bank completes restructuring and increases core business activities.
After more than 7 years of implementing the restructuring project, Sacombank has completely resolved most of the existing problems and basically completed the key objectives. The bank has recovered and resolved more than 80% of bad debts and outstanding assets; fully set aside provisions in accordance with regulations, of which 100% of provisions were made for debts sold to VAMC that have not been resolved.
Asset quality has been continuously improved with the proportion of profitable assets in total assets being raised to over 91%. Business scale has been continuously expanded, increasing by an average of 10%-13%/year.
Digital transformation at Sacombank is being accelerated to increase management capacity and develop multi-utility products and services to meet customers' digital banking needs. The bank's profit increased 62 times from VND156 billion in 2016 to VND9,595 billion in 2023.
Source: https://nld.com.vn/fitch-ratings-lan-dau-xep-hang-tin-nhiem-sacombank-voi-trien-vong-on-dinh-196240716160537805.htm
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