Will Sacombank finish handling the VAMC bad debt in 2022 and outstanding interest accrued in 2024?
admin 10-11-2020, 23:35

Will Sacombank finish handling the VAMC bad debt in 2022 and outstanding interest accrued in 2024?

The recently published analysis report of Ban Viet Securities Company (VCSC) forecasts that in 2020, profit after tax of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, HoSE: STB) will increase 5.1% compared to with last year.

In 2021, profit growth is forecast to reach 18.2% and reach 17.8% in 2022.

NPL ratio in the period 2020 – 2022 is forecasted at 2.1%, 2% and 1.92% respectively.

VCSC expects that all special bond balances at Sacombank’s VAMC will be processed and provisioned by the end of 2022. Meanwhile, accrued interest accrued will be cleared in 2024. In which, the debt The original from the deferred payment of Can Duoc plot is expected to be received in 2023, while the Phong Phu plot will be liquidated in 2021.

Previously, in the first nine months of 2020, Sacombank recorded a profit after tax of 1.8 trillion dong, down 4.1% year on year.

This slight decrease was mainly due to a 27 billion VND loss in investment securities, a 36.1% decrease in other net income and an increase of 69.4% in provision expenses. Meanwhile, the core business is still growing quite well. Accordingly, net interest income increased by 15% while net fee income increased by 26.3%.

Over the past year, Sacombank’s accounts receivable and on-balance sheet bad debt ratio increased, while all other bad assets improved.

Specifically, the balance of receivables increased to 21.6 trillion VND at the end of September 2020, up 1.2% year on year. On-balance sheet NPL ratio increased by 0.14 percentage point to 2.14%.

On the contrary, the bank’s accrued interest decreased by 10.8% year-on-year to 18.3 trillion dong. At the same time, Sacombank also settled 2.7 trillion dong of bad debts at VAMC from the beginning of the year to the end of September 2020, and set up an additional 322 billion dong of provision for these bad debts.

It is estimated that Sacombank still has about 26,700 billion dong of bad debt without provision at VAMC. NPL ratio (including balance sheet bad debt and non-provisioning bad debt at VAMC) was about 9.67%.

Source: vietnamfinance.vn – Translated by fintel.vn