CEO Phan Huy Khang says it is the outcome of targeting the correct areas, and providing a broad range of services and products
|Sacombank CEO Phan Huy Khang
|March 2, 2015: Though Vietnam is one of the many south-east Asian countries witnessing strong economic growth, it is also home to a stuttering banking sector. Yet, despite the challenges faced by domestic banks, Sacombank has expanded both in Vietnam and abroad.
“Vietnam’s economy has not fully recovered from the recession, which leads to slow credit growth, low quality loans and limited growth of chartered capital,” says Sacombank CEO Phan Huy Khang.
Indeed, Vietnam’s financial market is still immature. “Due to the low diversity of the financial market, those seeking medium-and long-term financing still rely on banks while deposits are mainly short-term. This could cause instability and an unsustainable liquidity situation in the long term,” says Mr Phan.
However, Sacombank has performed well and has an ambitious plan to maintain the momentum up to 2020. Its aims include growing assets by 16% a year; increasing equity by 15% a year; raising capital from economic entities and residents by 16% a year; increasing loans by 16% a year and increasing profits before tax by 22%, annually.
The bank has also restructured its capital make-up. In diversifying capital sources, especially focusing on resident’ deposits, Sacombank is seeking to further stabilise its business.
“By targeting the correct areas, and providing a broad range of services and products, Sacombank has been growing steadily in terms of total assets, total deposits and has maintained good credit quality and sustainable financial indicators,” says Mr. Phan.
it has also expanded its international network, which now consists of 428 transaction offices. The bank is present in 48 of the 63 Vietnamese provinces and cities as well as in Laos and Cambodia. It became the first Vietnamese bank to establish a fully owned operation in Cambodia.
“Sacombank will continue to strengthen retail banking, boosting long-term fund mobilisation, lending and services – with particular emphasis on cards, electronic banking and payment utilities – and cashless payments,” says Mr. Phan.
Increasing Sacombank’s scale via mergers and acquisitions and raising equity from strategic investors is another objective