notes to the consolidated financial statements - Sacombank

Day and Sacombank Plus in association with card sale
agencies were launched to increase the use of cards by
customers and sales of the commodities and services of
the Bank’s partners.
Total income from card services reached VND130 billion,
an increase of 88% from the previous year, representing
20% of the Bank’s total service income. The profit from
card-related activities totaled VND67 billion.
8. Administration expenses
During the year, business units throughout the system
continued to reduce costs and clearly understood the
viewpoint of Investment Expenses being Incurred
Expenses. The Bank continued to build and improve
the criteria for the material consumption standard,
standards on fixed asset investments, labour tools,
etc. in order to enable business units to shorten paper
processing time and improve professionalism.
9. Operating results
In the context of adverse market conditions, and with its
stance of sharing its customers’ difficulties, Sacombank
earned the targeted profits and secured the statutory
safety ratios, based on proper, timely and flexible
business policies, even though some of the business
results remained modest.
REPORTS
The Bank’s profit before tax was VND2,740 billion, an
increase of 13% from the previous year and equal to
101% of target.
10. Solvency & profitability
During the process of its development, Sacombank
has consistently combined three strategic objectives:
Safe Operation – Efficient Business – Sustainable
Development and complied with the State Bank of
Vietnam’s regulations, while heading for international
standards on financial safety.
Sacombank continued its strong restructuring of Assets
and Liabilities. During the year, Sacombank focused
on raising capital from residents and boosted capital
growth from foreign financial institutions. At the
same time, the Bank carefully selected borrowers and
restructured its credit portfolio and securities investment
portfolio. Furthermore, Sacombank allocated capital and
assessed the efficiency of capital use by business lines.
Its application of flexible internal costs stabilised the
liquidity of the Bank, ensured solvency and improved
profitability in the context of great changes in the market.
n Return on Equity (ROE) was 14.60%;
n Return on Assets (ROA) was 1.44%;
n Ratio of profitable assets to total assets was 84.36%.
ANNUAL REPORT 2011 40