Sacombank makes $73.4m profits from selling treasury stocks
Sacombank makes $73.4m profits from selling treasury stocks
Sacombank sold out all 81.56 million treasury shares (equivalent to 4.33 per cent of its charter capital) on the stock market on July 27 for more than VND2.438 trillion (US$106.2 million), earning a profit of VND1.684 trillion ($73.4 million).
It was one more important mandatory task in its restructuring approved by the State Bank of Vietnam after the merger.
Nguyen Duc Thach Diem, a member of the board of directors and CEO of the bank, said, “After handling Sacombank's treasury shares, we have completed one of the objectives of the restructuring project, contributing to increasing liquidity, increasing the efficiency of capital use as well as improving the capital adequacy ratio for the bank.”
Sacombank is making unrelenting efforts to soon accomplish the restructing project’s objectives to regain its position in the market and get approval to pay dividends to shareholders despite facing many new challenges, she added.
It also plans to sell all 13.87 million shares it owns in the Sacombank Securities Joint Stock Company, equivalent to a 10.21 per cent stake, in August as part of its strategy to restructure investments and increase revenues to supplement capital for its businesses.
At the end of the first half of the year the bank had total assets of VND504.5 trillion ($21.97 billion), deposits of VND 447.6 trillion ($19.5 billion) and loans outstanding of VND 361.1 trillion ($15.7 billion), up 6.1 per cent since the beginning of the year.
Its profit before tax was VND2.424 trillion ($105.58 million), or 60.6 per cent of its full-year target.
It recovered VND 6.61 trillion ($288 million) worth of bad debts and outstanding assets in the first half to reduce its non-performing loans ratio by 0.1 percentage point for the year to 1.54 per cent.
Its capital adequacy ratio (CAR) is 9.75 per cent, up 0.22 percentage points from the beginning of the year.
