Ho Chi Minh City, December 14, 2021 – Saigon J.S. Commercial Bank (SCB) successfully held the Annual General Shareholders Meeting in fiscal year 2020. At the meeting, approved by majority were Report of operating activities in 2020, operational orientation and plan for 2021 as well as other contents related to the administration and governance.
In 2021, due to the negative impact of the Covid-19 pandemic, SCB had no choice but to postpone the meeting several times.
Business performance in 2020
In the past year, SCB’s business activities continued to grow, especially with outstanding outcomes in treasury and service activities with total non-interest income (including net income from services, forex trading, securities trading, capital contribution and share purchases) reaching VND2,698 billion, an increase of VND761 billion and a growth rate of 39.3% compared to 2019. Accordingly, net profit from services hit VND1,994 billion, up 40.43% compared to the previous year, accounting for 73.9% of total non-interest income. Key services such as cards, e-banking, insurance and international payment continued strong growth and made significant contributions to service revenue. In addition, treasury and forex trading, still at the top of their game, made favorable effect to the Bank’s operating income. As of December 31, 2020, total assets of SCB were VND633,797 billion, deposits and borrowings from customers were VND577,824 billion, outstanding loans were VND351,386 billion.
Deposit products have always been one of SCB’s strengths. In 2020, SCB’s capital mobilization witnessed a growth rate of 18.38%. At the same time, in 2020, SCB continued focusing on credit growth with prudent policies, restructuring loans to medium and long terms, enhancing the proportion of profitable assets in the balance sheet. The bank also paid attention to promoting credit activities toward streamlining procedures, diversifying targets, aiming at customers’ needs.
In 2020, overdue debts and bad debts were reported to swell compared to the end of 2019 as SCB reviewed and re-evaluated all customers’ debts affected by the Covid-19. However, the rates of overdue and bad debts were still within the limits of the State Bank, at 2.69% and 2.34%, respectively. At the same time, SCB also strengthened the risk control, pushing the process of debt settlement and recovery. During the year, SCB tapped resources to make provisions for credit losses with the total amount at VND1,338 billion and for other assets with VND99.6 billion. The provisions were set aside from accumulated financial sources in debt settlement activities. After completing bad debt settlement, there would be promising income and profit to the bank from recovery of such deducted expenses. As of December 31, 2020, total risk provision of SCB amounted to VND12,914 billion
Business performance in 2021
The meeting unanimously approved SCB business plan in 2021 with main objectives to include focusing on implementing restructuring solutions, business development strategies; streamlining organizational structure and personnel, prioritizing business development; improving operational governance. Thanks to the flexibility in implementing business plans, SCB’s pre-tax profit accumulated to the third quarter of 2021 was VND784 billion. Non-credit activities such as services, forex, and securities trading achieved impressive results with accumulated operating income of VND3,949 billion. SCB’s insurance services in the first nine months earned more than VND900 billion, affirming its leading position in the market.
As of September 30, 2021, SCB’s total assets amounted to VND673,276 billion, deposits from individual and corporate customers totaled VND605,466 billion and outstanding loans reached VND352,913 billion. Amidst the Covid-19 crisis, the Bank’s credit quality was still strictly controlled with the bad debt and overdue debt ratios of 1.04% and 1.71% respectively, well below 3% in compliance with regulations of the State Bank.
Bracing for the new normal amid the pandemic, on October 6, 2021, SCB officially launched the project named “Internal assessment of capital adequacy – ICAAP” consulted by PwC Vietnam Company. This is a strategic project expected to help SCB optimize financial management by ensuring the harmony between the three factors of profit, risk and capital management according to international practices.
At the meeting, shareholders agreed to the resignations of 03 members in the Board of Directors (Mr. Dinh Van Thanh, Mr. Vo Tan Hoang Van and Mr. Nguyen Van Thanh Hai) of the 2017-2022 tenure due to personal reasons. The Board has been conducting the bank’s conventional voting procedures for alternative members.