notes to the consolidated financial statements - Sacombank

PERFoRMAnCE RESULtS oF SUBSIDIARIES
In 2011, based on the viewpoint of Safety and Efficiency in business administration, the total consolidated assets of
Sacombank changed slightly from the beginning of the year. As at 31 December 2011, the total assets of Sacombank
were worth VND141,469 billion, of which profitable assets represented 83.9%.
Due to the difficulties in the domestic and world economies, as well as the stagnation of the stock market, the Bank
faced significant challenges in its operation, such as difficulties in increasing equity capital to improve its financial
capacity and meet business development needs. However, with its strong reputation, business scale and consistent
business performance, Sacombank has always been trusted by customers, investors, and shareholders. In particular,
the professional and flexible management by the management teams at various levels in the Bank helped Sacombank
achieve its equity capital target. Its total equity capital reached VND14,547 billion as at 31 December 2011, an increase of
VND529 billion from the previous year.
In 2011, local enterprises, including Sacombank’s Subsidiary Companies, were unable to avoid the impact of economic
challenges. However, with their extensive experience accumulated over many years, the Subsidiaries actively
implemented their defense and strengthening plans and made use of every market opportunity to launch appropriate
business solutions in order to exceed their assigned targets. In addition, product cross-sale activities between the Bank
and its Subsidiaries were boosted to help ensure that satisfactory results were achieved. The business units shared and
exploited each other’s existing customer bases through a wide network at home and abroad. Through this process,
practical economic benefits were obtained for each subsidiary and for Sacombank as a whole.
The consolidated profit before tax in 2011 was VND2,771 billion, an increase of 7.6% from 2010.
n Sacombank-SBA: This Subsidiary earned profit before tax of VND110.6 billion, or 106.1% of target. To achieve such
good results, the Company actively and fully used its existing warehousing system and efficiently managed the
mortgage of commodities pledged by customers;
n Sacombank-SBR: Foreign exchange remittance revenue totaled US$1.57 billion, an increase of 20.6% from 2010,
representing a 17.4% market share. This Subsidiary’s profit before tax was VND9.1 billion, an increase of 67.6% from
2010, equal to 106.7% of target. During the year, through the implementation of solutions to attract remitted capital
from traditional markets, building relationships with new partners, and the launch of a number of home delivery
money transfer products and services, the Company enjoyed increases in total incomes;
n Sacombank-SBL: This Subsidiary’s profit before tax was VND75.02 billion, an increase of 42.9% from 2010, exceeding
the target by 7.2%. Despite many difficulties in the financial leasing market last year, SBL utilised all of its business
opportunities and network advantages to cross-sell products and control credit quality;
n Sacombank-SBJ: This Subsidiary’s profit before tax was VND22.1 billion. In the context of the numerous changes in
the State Bank of Vietnam’s policies, which adversely affected gold trading activities, the Company made good use of
market opportunities and restructured its business activities with a focus on boosting jewelry trading. As a result, the
Company successfully met its business targets.
In order to keep pace with market developments and trends, in future, these Subsidiaries will continue to focus on their
core business, utilising their potential and strengths to develop in line with the Group’s orientation, and achieve the
required rate of return for Sacombank as scheduled.
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ANNUAL REPORT 2011