Up to now, Sacombank has recovered and handled more than 81% of outstanding assets arising after the merger - Photo: Sacombank
Sacombank achieved positive business results
According to the 2024 financial report, Sacombank's pre-tax profit exceeded VND12,720 billion, an increase of 32.5% compared to 2023. The previous year, the bank achieved VND9,595 billion in pre-tax profit, an increase of 51% compared to 2022.
Compared to the time the restructuring project began, Sacombank's profit has increased about 82 times while its charter capital remains the same.
Not only has Sacombank completed most of the key business targets assigned by the shareholders’ meeting, it has also continuously made its mark in implementing the project. Up to now, the bank has recovered and handled more than 81% of the outstanding assets arising after the merger.
For the remaining uncollected portfolio, Sacombank has set aside 100% of risk provisions, thereby fulfilling all financial obligations in the project.
All existing issues regarding cross-ownership, capital contribution to purchase shares or treasury stocks have been resolved, and the issues recorded in the inspection conclusion have been basically completed. At the same time, the bank has also promoted streamlining and restructuring its operating apparatus.
Sacombank's operating expenses in the fourth quarter of 2024 decreased by 7.6% compared to the same period last year, to VND 3,150 billion, contributing to profit optimization.
In addition to positive business results, Sacombank also recorded significant progress in risk management and credit rating. In December 2023, Sacombank was awarded a certificate of completion of the implementation of risk management standards according to BASEL III by EY Vietnam Joint Stock Company.
In March 2024, Sacombank's rating was upgraded by Moody's by 1 notch due to significant disposal of legacy assets, helping to improve asset quality and profitability.
In July 2024, the bank was again rated by Fitch Ratings with a "stable" outlook. Other ratings were positive, with the long-term issuer default rating (IDR) at 'BB-', the short-term IDR at 'B' and the independent strength (VR) at 'B+'.
Notably, this is the first year that Fitch Ratings has evaluated Sacombank. The above series of events is considered a clear demonstration of the continuous efforts in the restructuring process, helping Sacombank improve its position in the market.
When will shareholders 'meet' for dividends?
Sacombank's problem lies in the fact that the bank must be recognized for successful restructuring, from which it will have a basis to proceed with dividend payment or capital increase - Photo: Sacombank
Although the financial report always shows steady growth, but 9 years without dividend payment, combined with accumulated undistributed consolidated profit of up to 28,426 billion VND, Sacombank often has to face pressure from shareholders at every general meeting. There was even an opinion that this bank intentionally "soaked" dividends.
Denying the above issue, at the 2020 shareholders' meeting, the chairman of Sacombank once spoke up: "We really want to pay dividends to boost stock prices, even I want this to have money to spend. Not paying dividends is a disadvantage for shareholders."
Or at last year's congress, the bank's leaders also gave direct responses: "Sacombank is a restructuring bank, dividend payment in any form must be approved by the State Bank. Sacombank has submitted a detailed plan to the State Bank and is awaiting approval. Resources for dividend payment are ready. Therefore, shareholders' rights are still guaranteed."
According to the record, Sacombank's problem lies in the fact that the bank must be recognized for successful restructuring, from which it will have a basis to proceed with dividend distribution or capital increase. However, to successfully restructure, Sacombank must meet two core criteria: Reduce the bad debt ratio from the merger to below 3%, and handle debts secured by STB shares equivalent to 32.5% of shares.
If Sacombank can proactively reduce the bad debt ratio, then the bank must get approval from the management agency on how and when to handle the debt with shares. Therefore, the intention of "submitting a detailed plan to the State Bank and waiting for approval" of Sacombank's leaders is mostly based on this 32.5% stake story.
Despite many speculations, it is now April - the season for bank meetings - but Sacombank has yet to show any signs of "approval". It is highly likely that this bank will miss the deadline again and the question of "when to pay dividends" will continue to heat up this year's shareholders' meeting.
However, contrary to the developments of the project story, Sacombank shareholders' sentiment seems quite stable when the bank recorded two new investors owning 1% or more of charter capital.
Specifically, the appearance of two new institutional shareholders, KIM Vietnam Growth Equity Fund and Amersham Industries Limited, brings the total number of major shareholders at Sacombank to 7, including 6 organizations and 1 individual.
Sacombank shares have also grown impressively over the past year. At the time of the shareholders’ meeting last year, STB shares were priced at VND28,200/share. But in early April this year, STB had a breakthrough of 41%, reaching nearly VND40,000/share.
Having waited, Sacombank shareholders who still hold STB shares will probably only be able to seek comfort from price increases, as a Sacombank leader once shared: "The Board of Directors understands the wishes of shareholders and is working very hard with the State Bank to receive dividends.
Although no dividends have been paid, STB's stock price has grown significantly in recent times, partly compensating shareholders.
Source: https://tuoitre.vn/sacombank-co-the-khong-chia-co-tuc-trong-nam-nay-20250404174251068.htm
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