Duong Cong Minh is appointed as the Sacombank’s new chairman for tenure 2017–2021. (Photo sacombank)

Hanoi (VNA) - Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)’s annual shareholder meeting on June 30 officially appointed Duong Cong Minh as the new chairman for tenure 2017 – 2021.

The lists of six candidates for board of directors and four members of supervisory board in the new term were absolutely approved by the shareholders.

Duong Cong Minh is currently the president of Him Lam Group and former chairman of LienVietPostBank.

Minh got the highest vote rate with over 198 percent, replacing Kieu Huu Dung, who had only 66.4 percent of vote rate.

The meeting reported results of operations in 2016 with a profit before tax of 156 billion VND (6.9 million USD), a year-on-year decrease of 82 percent. The non-performing loan ratio at the end of 2016 stood at 6.81 percent of the bank’s total outstanding loans.

According to Sacombank’s financial reports, by December 31, 2016, the accumulated retained earnings which have not paid dividends to shareholders were 1.014 trillion VND.

As regards business plan for 2017, Sacombank set a total asset target of 384.6 trillion VND, a year-on-year increase of 16 percent and a profit before tax of 585 billion VND, up 275 percent against 2016.

The bank’s total mobilised capital is planned to reach 356.1 trillion VND, up 17 percent compared to 2016.

Sacombank’s board of management also identified key tasks, such as consolidating the bank’s operations after merger and developing detailed plan to effectively implement restructuring plan approved by State Bank of Vietnam.

Besides, Sacombank needs to focus on remediating the existing financial issues, restructuring of assets and liabilities, effectively controlling and preventing overdue debts, solving bad debts and structured debt to quickly recover capital, increasing profitability assets in order to improve business efficiency. 

Earlier, the central bank has so far asked Sacombank to complete its management and administrative structure, continue implementing restructuring solutions to guarantee the rights and benefits of depositors, stabilise operations and make sure its financial system is secure.

Many heavyweights have expressed interest in the restructuring of Sacombank, such as New York-based investment bank Evercore Group, M&A consulting firm Redsun Capital Limited and Dang Van Thanh, president of Thanh Thanh Cong Group (TTC) and founder of Sacombank.-VNA