Sacombank expects 50% profit hike to $405 mln in 2023

Vietnamese lender Sacombank is expecting pre-tax profit of VND9.5 trillion ($405 million) in 2023, up 50% year-on-year.

Sacombank, listed on the Ho Chi Minh Stock Exchange (HoSE) as STB, plans to reach total assets of VND657.8 trillion ($28.04 billion) and mobilized capital of VND574.6 trillion ($24.49 billion) in 2023, both up 11%, according to its 2023 annual general meeting document.

Target credit growth is expected to hit 12%, equivalent to a credit balance of VND491.6 trillion ($20.95 billion). Sacombank's board of directors said that it would adjust the growth of deposits and loans in line with the credit growth limit set by the State Bank of Vietnam.

In 2023, Sacombank will deduct profit after tax into four funds, which include a reserve fund to supplement charter capital, financial reserve fund, bonus fund, and welfare fund. The bank did not announce any more plans on the distribution of profits to shareholders.

In the meeting document, Sacombank said that from March 14, 2014, the maximum foreign ownership ratio for STB shares as agreed by Sacombank's general meeting of shareholders is 30%. However, since the merger of Southern Bank in September 2016, with an additional of 400 million shares to raise the total to 1.49 billion shares, the foreign ownership at the bank has been 23.63%. It confirmed the current limit is 30%.

Established in 1991, Sacombank was one of the first joint stock commercial banks in Ho Chi Minh City. In the first nine months of the year, the private bank reported pre-tax profits of VND4.44 trillion ($186 million), fulfilling 84.1% of the year's target. Interest income accounted for 60.6% of its total revenues.

STB shares closed the Wednesday trading session at VND6,000 ($0.26) a unit.