Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank-STB) has recently announced its fiscal statement for the second quarter of 2012 with a 21 percent year-on-year fall in profit. However, in Jan-Jun, the lender’s profit rose 14 percent on year.
Particularly, in Q2/2012, Sacombank gained higher year-on-year increase in profit from operations. Its net interest income rose 8 percent to 1.433 trillion dong, profit from securities investment increased four times year-on-year, other profit increased over seven folds on year and profit from capital contribution and stake purchase also doubled on year.
However, Sacombank’s expenditures in the period also surged sharply, leading to a 25 percent on year fall in pre tax profit to 677 billion dong. Of which, the lender’s operating costs soared 38 percent to 952 billion dong. Sacombank earmarked 330 billion dong for its credit risk provision, increasing seven folds on year.
After spending on taxes, the lender’s retained profit was 540 billion dong in Q2/2012, down 21 percent on year.
Accumulatively, in Jan-Jun, the bank’s net interest income rose 18 percent (435 billion dong) and other business activities also grew strongly. The bank reported pre tax profit of 1.678 trillion dong and after tax profit at 1.296 trillion dong, growing 14 percent on year.
According to the bank’s fiscal statement explanation, it gained 86 billion dong profit from securities trading activities while suffering loss of 68 billion dong in the same period last year because in H1/2012 Sacombank had a refund of 85 billion dong from its provision fund while in last H1/2012, it had to spend 68 billion dong on its provision fund.
Its operating costs in Jan-Jun rose 38 percent on year mainly for salaries and allowances for staff with a rise of nearly 40 percent to 813 billion dong.
The lender’s credit in the first six months of this year was negative 0.13%. Its bad debts as of the end of June were more than one trillion dong, accounting for 1.28 percent of the total loans. By the end of 2011, STB’s bad debts were 442 billion dong, or 0.56%.