As of December 31, 2021, SCB’s business results were significant as pre-tax profit grew impressively, reaching VND1,377 billion. Last year, SCB also successfully increased its charter capital to more than VND20,020 billion and was listed among the leading banks in terms of total assets in Vietnam.
Efficient operation, strong profit growth
In 2021, despite the negative impact of the pandemic, thanks to reasonable cost allocation and efforts to promote business solutions and expand markets, SCB achieved impressive results.
SCB’s separate financial statements show that its net interest income grew 163% in 2021. With the strategy of diversifying revenue sources, non-credit activities such as forex trading, investment securities investment, etc. deployed effectively, contributing 36% to total operating income. In which, life insurance sales reached VND1,028 billion, continuing to put SCB in the group of leading banks in the domestic bancassurance market.
By the end of 2021, SCB’s profit before tax reached VND1,377 billion. In 2021, SCB also successfully increased its charter capital from VND15,231 billion to VND20,020 billion.
Strictly control credit and bad debts
In the context of the Covid-19 pandemic having a heavy impact on the economy in 2021, SCB quickly implemented interest exemption and reduction programs and debt extension for affected customers under the direction of the Government and the SBV, simultaneously strictly controlling credit growth and well-prepared to settle bad debts.
Measures to enhance asset quality and develop business in a safe and sustainable manner were effectively implemented by SCB. Debt quality at SCB improved significantly, SCB’s bad debt ratio was controlled at 1.11%. Meanwhile, the bank continued to increase risk provisions, maintaining the bad debt coverage ratio to 180%. Liquidity and capital adequacy ratios were maintained at a high level compared to SBV’s regulations of the SBV, helping SCB to have a safe capital buffer for business activities.
Ready for a new stage of development
Towards new achievements in 2022, SCB aims at a minimum ROE of 5%, maintaining an annual growth rate of at least 30% in service fees, effectively managing operating costs and improving profit. SCB has fully prepared to build a solid customer base, promote digitalization in operation, improve profitability while strengthening risk management, ensuring safe prudential ratios.
Currently, SCB is implementing the project "Gap assessment and building a roadmap for Basel II compliance" with KPMG partner to perfect and upgrade the risk management framework with the goal of complying with SBV’s regulations and international standards of Basel.
Along with that, SCB plans to increase charter capital according to the schedule approved by the General Meeting of Shareholders. This is an important step in the bank’s long-term development strategy for unperilous, productive and sustainable growth.