Sacombank targets 10% growth in 2024 pre-tax profit

Private Vietnamese lender Sacombank has set a target of earning VND10.6 trillion ($424.6 million) in pre-tax profit for 2024, a year-on-year increase of 10%.

Its bad debt ratio is set to be under 2% this year, according to documents to be submitted to its upcoming annual general meeting of shareholders (AGM).

Sacombank expects to mobilize VND636.6 trillion ($25.49 billion) in 2024, 10% higher than the end of 2023. Its total outstanding credit balance is set to reach VND535.8 trillion ($21.46 billion), a year-on-year increase of 11%. By the end of 2024, the lender’s total assets will have reached an estimated VND724.1 trillion ($29 billion), up 10%.

Sacombank's 2024 AGM will approve a proposal to increase the number of members of the supervisory board for the 2022-2026 term from four to five. The board of directors will also submit proposals related to the amendment of the bank’s regulations to comply with the Law on Credit Institutions 2024.

After deducting taxes and financing funds, Sacombank's remaining profit last year was VND5.72 trillion ($229 million), plus VND12.67 trillion ($507.4 milion) in profit retained from previous years.

Sacombank has no plans to pay 2023 dividends. The last time shareholders received a slice of the pie was in 2015 at a rate of 20% in shares. At the end of 2023, this bank's charter capital had reached VND18.85 trillion ($754.9 million).

Sacombank is listed on the Ho Chi Minh Stock Exchange (HoSE) as STB, which closed on Friday at VND29,600 per share ($1.19).