SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

Founded in 1991, SACOMBANK is one of the most prestigious commercial banks in Vietnam. This bank is operating according to Establishment Decision and Operation License No. 111/GP-NHNN issued by the STATE BANK OF VIETNAM. As of December 31, 2023, SACOMBANK had total assets of more than VND 674,389 billion and charter capital of more than VND 18,852 billion with a wide operating network in Vietnam with more than 500 transaction points and more than 18,500 employees.

After SOUTHERN BANK being merged into the bank in 2015, SACOMBANK was restructured under Decision No. 34/ QD-NHNN issued by the STATE BANK OF VIETNAM. After completing restructuring process in 2022, SACOMBANK also planned to sell 32.5% of its shares to two foreign partners. These shares originated from unhandled non-performing loans (NPLs) related to Mr. TRAM BE (former Deputy Chairman of SOUTHERN BANK) that was authorized to VIETNAM ASSET MANAGEMENT COMPANY (VAMC). SACOMBANK is applying for a mechanism to repurchase this item, return special bonds, and then sell it at auction.

In 2023, in the context of many difficulties in the world economy, SACOMBANK allocated significant resources to enhance core business areas, continuously improving products and services to diversify revenue sources. With the business goal of continuous development of customer-oriented digital products and services, through collaborations with Big Tech (such as Apple, Samsung, and international card organizations like VISA, Mastercard, American Express), SACOMBANK has introduced modern payment methods, including card payments, QR code payments, phone payments, and smartwatch payments. Its comprehensive open banking model strengthens connections with fintech, e-commerce companies, and technology partners through connection APIs to develop more types of banking payment methods. Currently, SACOMBANK is a trusted bank for 18 million customers, with nearly 70% of customers transacting via digital channels.

In the second half of 2023, with the consultancy of EY VIETNAM CONSULTING, SACOMBANK conducted a thorough assessment of risk management and developed key aspects of BASEL III - a high-level standard in banking risk management - according to standard methodology. This includes ensuring the capital adequacy ratio (CAR), leverage ratio (LR), liquidity coverage ratio (LCR), net stable funding ratio (NSFR), and applying the internal capital adequacy assessment process (ICAAP) according to BASEL III. The bank also fully complies with other regulations on information disclosure, major risk management, and behavioral model discussion methods.

With 2023 consolidated pre-tax profit reaching more than VND 9,500 billion, SACOMBANK's profit increased by more than 50% compared to 2022. This bank said it had handled an estimated VND 7,000 billion of bad debts and outstanding assets, increasing the total cumulative recovery reached nearly VND 95,000 billion, completing financial obligations in the Restructuring Project. And, in support of its strong internal financial strength, SACOMBANK had set aside 100% of provisions for the entire portfolio of debt and assets that exist but have not been processed.