Saigonbank reports 44% profit increase in Q1/2025 despite negative credit and high provisions

The consolidated financial report for the first quarter of 2025 of Saigonbank (UPCoM: SGB) shows that pre-tax profit reached more than VND98 billion, even though the cost of risk provision was nearly 10 times higher. Of which, net interest income reached nearly VND218 billion, up 18% over the same period.

Profit from service activities was over VND9 billion, up 21% over the same period, and profit from foreign exchange trading was nearly VND5 billion, up 12% over the same period. In particular, other activities had a profit of over VND109 billion, 4 times higher than the same period, according to the explanation that the Bank had strengthened the handling of bad debts and collected amounts from debts that had been used for provisions.

Saigonbank reports 44% profit increase in Q1/2025, despite negative credit and high provisions

Meanwhile, operating expenses increased by 18% to over VND176 billion, due to increased labor costs, investment costs, maintenance and repair of fixed assets. Net profit from business activities reached over VND164 billion, 2.2 times higher than the same period.

Saigonbank set aside more than VND66 billion to reserve for credit risks in the first quarter of this year, 9.7 times higher than the same period last year, but the bank still reported a 44% increase in pre-tax profit, to more than VND98 billion. Thus, compared to the target of VND300 billion in pre-tax profit set for the whole year just approved by the annual general meeting of shareholders, Saigonbank has achieved 33% of the target after only the first quarter of the year.

By the end of the first quarter of 2025, the Bank's total assets increased slightly by 1% compared to the beginning of the year to VND 33,506 billion. Of which, credit growth was negative 4%, only VND 20,900 billion; customer deposits increased by 1% to VND 24,539 billion. At the same time, Saigonbank's loan quality declined when total bad debt as of March 31, 2025 increased by 18% to nearly VND 685 billion. The ratio of bad debt to outstanding loans increased sharply from 2.66% at the beginning of the year to 3.28%.

Previously, on April 24, Saigonbank held its 2025 annual general meeting of shareholders to approve the 2025 business plan with pre-tax profit reaching VND300 billion, 3 times higher than the 2024 result. By the end of 2025, Saigonbank aims to reach VND34,900 billion in total assets, up 5% compared to the beginning of the year. Mobilized capital reached VND30,100 billion and outstanding loans reached VND24,700 billion, up 5% and 10% respectively. International payment turnover is expected to reach USD300 million.

In 2024, Saigonbank will achieve nearly VND 100 billion in pre-tax profit, down 70% compared to 2023 and only completing 27% of the profit plan. With this result, the Bank plans to issue nearly 33.9 million bonus shares, at a rate of 10%, to continue increasing its charter capital by VND 339 billion, from VND 3,388 billion to VND 3,727 billion. The additional capital will be used by Saigonbank to invest in facilities, fixed assets, innovate information technology infrastructure for digital transformation and expand credit activities.

Chairman of the Board of Directors of the Bank Vu Quang Lam said that the Board of Directors has clearly recognized the importance of updating the charter, and the target of VND300 billion in pre-tax profit in 2025 has been carefully reviewed by the Bank in terms of business operations, financial plans, current capacity and the determination of the entire Board of Directors. According to the Chairman of Saigonbank, this is a figure that has been carefully calculated, taking into account risk factors, especially ensuring liquidity safety and bank risk management.

Saigonbank also closely monitors external factors such as the impact of US tariff policies, which, although not directly affecting the Bank at present, may affect some major customers. With those customers, the Bank is committed to accompanying, sharing difficulties and supporting to overcome the challenging period.

Source: https://baodautu.vn/saigonbank-bao-lai-tang-44-trong-quy-i2025-du-tin-dung-am-va-du-phong-cao-d274333.html