Profit down 70% in 2024
Recently, Saigon Bank for Industry and Trade (Saigonbank - UPCoM: SGB) has just announced the documents for the 2025 Annual General Meeting of Shareholders with reports on the business plan, profit distribution for 2024, increasing charter capital from equity capital... Notably, in 2025, Saigonbank set a pre-tax profit target of 300 billion VND, 3 times higher than the previous year's profit.
Previously in 2024, Saigonbank reported a pre-tax net profit of more than VND99 billion, down 70% compared to 2023. In the fourth quarter of 2024, the bank lost nearly VND114 billion before tax, while in the same period last year it made a profit of VND84 billion.
In addition, the bank also targets total assets of VND 34,900 billion, an increase of 5% compared to 2024. Mobilized capital reaches VND 30,100 billion, an increase of 5% and outstanding loans reach VND 24,700 billion, an increase of 10% compared to 2024. Foreign payments reach 300 million USD and bad debt is maintained according to regulations of the State Bank of Vietnam .
To achieve the goal, the bank said it will continue to maintain a balance between capital sources and capital use on the principle of ensuring liquidity and optimizing business efficiency. At the same time, it will apply many diverse capital mobilization channels developed on digital platforms, complying with the State Bank of Vietnam (SBV)'s regulations on interest rates...
Increased charter capital to over 3,700 billion VND
Another important content to be presented to the General Meeting of Shareholders is the plan to issue shares to increase charter capital from equity capital. According to the proposal, Saigonbank plans to issue nearly 33.88 million shares at a rate of 10% (shareholders owning 10 shares will receive 1 new share).
The total issuance value at par value (VND10,000/share) is nearly VND339 billion. The capital source for implementation is taken from the bank's equity.
Regarding the 2024 profit distribution plan, after fulfilling tax obligations and setting aside funds from the pre-tax profit of more than VND 99 billion, the remaining profit of more than VND 24 billion is also expected to be used to implement the above-mentioned capital increase share issuance plan. After completing the use of profits to increase capital, the remaining profit for 2024 is recorded as more than VND 39 billion.
If the share issuance plan is approved by shareholders and successfully implemented in 2025, Saigonbank's charter capital will increase from the current VND3,388 billion to VND3,727 billion.
The additional capital, according to the bank, is expected to be used to invest in facilities and technology infrastructure, especially serving digital transformation, gradually meeting the charter capital requirements of the State Bank of Vietnam, as well as expanding the scale of credit activities and capital trading.
Regarding the necessity of increasing charter capital, Saigonbank informed that on June 8, 2022, the Prime Minister issued Decision No. 689 approving the "Project on restructuring the system of credit institutions associated with bad debt settlement for the period 2021 - 2025", which sets the target of the group of domestic commercial banks having a minimum charter capital of VND 5,000 billion.
In addition, the bank also increased its charter capital to improve its scale of operations and competitiveness, increase the total outstanding credit balance for customers, and increase the bank's medium and long-term capital...
Source: https://baodaknong.vn/muc-tieu-lai-gap-3-lan-trong-nam-2025-cua-saigonbank-sgb-lieu-co-kha-thi-248464.html
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