Sacombank’s

Analysis
GROUP 5
 CONTENTS
Part 3:
Analysis of the
bank risks: Part 5:
Part 1: Interest rate Liquidity risk
Introduction risks, & Analysis of
to Sacombank Liquidity risks bank loans

Part 2: Part 4:
Analysis of the Analysis of the
bank bank capital
performance
Part 1: Introduction to Sacombank

STORY MISSION VISION PRODUCTS AND KEY

SERVICES ACHIEVEMENTS
Sacombank’s Structure
 Established in 1991
 1st Commercial Bank established in HCM city
 Chairman of BOD: Duong Cong Minh
Mission, Vision & Core Value
Main Services

PERSONAL SERVICE CORPORATE-

Opening cards, accounts, ORIENTED SERVICE
offering loans, etc Capital mobilization, credit
facilities, payment, foreign
exchange, etc
Key
Achievements
 Top 10 private commercial
banks in 2019
 Top 500 best profitable
enterprises in Vietnam in 2019
 Top 3 public listing businesses
recognized by investors in 2019
 Mr. Nguyen Duc Thach Diem,
a member of BOD & CEO of
Sacombank was given “Red
Star Award 2019”
Sacombank Financial & Operational Analysis

FINANCIAL INTEREST RATE RISK CAPITAL MANAGEMENT BANK’S LOANS &

PERFORMANCE LIQUIDITY MANAGEMENT
 Part 2: Bank’s Financial Performance
• Total assets: decreased slightly from 2018 to
2019 (406 billion to 453 billion respectively)
• Total liabilities and total equity capital: a
small change
• Total interest income: rose 7.89% to reach
closely VND 30.5 billion in 2019
• Total net income: increased up to
approximately 27.08% over 2018 -> a good
sign of Sacombank’s profitability
• Net interest income: rose by 16.85%
Part 2: Bank’s Financial Performance
 ROE in 2019 is 2.08% higher than that of 2018 -> profit
generation increases
 Equity multiplier increases slightly: 16.96x (average multipliers)
 EPS: increased -> P/E ratio decreased by 4.6% -> The decrease of
share price from 9,30.2 million dong to 8,228.22 million dong
 ROA & NIM increased -> Higher margin, higher profit of the bank
 Net Profit Margin rose 1.01%, from 5.95% (2018) to 6.96% (2019)
 Asset Utilization: 7.78% -> do good in controlling its assets
 Tax Management Efficiency: soared nearly 4 times(from 1.78% to
6.29%) -> lost 6.29% of their income after tax to taxation
 Asset Management Efficiency, Funds Management Efficiency and
Operating Efficiency ratio: increased slightly
Part 3: Interest rate risk
 Delta NIM
Interest rate risk   2018 2019
- Net interest margin: increased ->
Bank has made good use of its
asset, would increase the Net Interest Income 7,633,794 9,180,688
profitability of the lender.
Delta NIM: the positive change
Total Earning Assets 330,526,177 377,083,560
-> Bank has made their profit in
2019
NIM has its limitation: does not
Net Interest Margin 2.31% 2.43%
take into account of the fees and
non-interest income that bank
generates through non-interest ∆ NIM 0.13%
services.
Interest rate risk
HIGHLIGHTS
 Negative $GAP: Bank has a greater amount of
Liabilities than Assets
 NIM: positive -> profit in 2019
 Interest rate increased, more cost to pay than
interest income -> decrease in the bank’s net
interest income
RECOMMENDATION
 Focusing on the managing the impact of
interest rate risk on the net interest income
 Forecasting trend & interest rate fluctuations
 Making the $GAP=0
Part 4: Bank’s
Capital Under
Application of
Basel I & II
Part 4: Capital Management
TIER 1: CORE CAPITAL TIER 2: SUPPLEMENTAL CAPITAL

 Tier 1 CAR: 6.45% in 2018, 2.15% in 2019  Tier 2 CAR: 1.99% IN 2018, 2.25% in 2019
-> meeting the requirement ( at least 4%) -> nearly meet requirement ( at least 2%)

CAR (Minimum ratio is 8% under Basel II)

decreased by 0.17% compared to 2018, but
still higher than minimum requirement (8.44%
in 2018, 8.27% in 2019)
 Part 5: Bank Loans & Liquidity Management
LIQUIDITY MANAGEMENT
 Cash ratio: 2.76% in 2018 & 4.72% in 2019
both >1%
=> Sacombank can cover all short-term debt
=> Having cash on hand to operate
 Deposit composition ratio : decreases 7.49%
from 2018
=> Greater deposit stability and a lesser need for
liquidity
 Liquid securities ratio: 9.27% in 2018 & 9.68%
in 2019
 Part 5: Bank Loans & Liquidity Management
 LOANS BY ORIGINAL Year 2019 (million VND) 2018 (million VND)
MATURITY
Short – term loans 153,783,211 123,168,464
 Short-term loans account for
47% of total loan under Medium – term loans 60,080,130 56,710,314
maturity, followed by Long-
term loans, and the lowest Long – term loans 82,166,433 76,743,975
increase is Medium-term loans
Total 296,029,774 256,622,753

 LOANS TO CUSTOMERS AND  Loans to individual: about 60% of Total loan

OWNERSHIP  Loans to corporations: more than 38% of total loan
 Loans to other private limited companies: 20.42%
=> The largest amount of total Loans to corporations
 Loans to other joint-stock companies: about 14%
=> The second largest
Thank you for
listening