Sacombank has pledged to finish settling all of its bad debts in five years (Photo: VNA)

HCM City (VNA) – The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has pledged to finish settling all of the 100 trillion VND (4.38 billion USD) of its bad debts in five years, instead of 10 years as stated in the restructuring plan approved by the State Bank of Vietnam.

At the annual shareholders’ meeting in Ho Chi Minh City on April 20, Chairman of Sacombank’s board of directors Duong Cong Minh said the bank has handled nearly 20 trillion VND (876 million USD) of the bad debts so far.

Over the last couple of years, Sacombank did not give dividend payments to its shareholders because it was being restructured and had to increase provisions, he said, noting that it is speeding up restructuring and expects this process will finish in three years in minimum and five years in maximum.

If this process is smooth, Sacombank is able to pay dividends to its shareholders in 2018 or 2019, with the central bank’s approval, he added.

Sacombank reports that its combined assets were worth about 368.45 trillion VND (16.14 billion USD) at the end of 2017, up 11 percent from the year’s beginning. The bank posted an 11-percent rise in capital mobilisation to some 338.43 trillion VND (14.82 billion USD) and a 12.5-percent increase in credit outstanding balance to around 225.59 trillion VND (9.88 billion USD). The ratio of non-performing loans was 4.59 percent.

The bank plans to cut the bad debt ratio to under 3 percent and continue to shorten the restructuring road map in the time ahead.

In 2018, it targets total assets at 430.9 trillion VND (18.87 billion USD), mobilised capital at 399.5 trillion VND (17.5 billion USD), credit outstanding balance at 255.2 trillion VND (11.18 billion USD), and pre-tax profit at nearly 1.84 trillion VND (80.59 million USD).-VNA