Fitch Ratings assigns Sacombank’s first credit rating with a stable outlook

Vietnam's economy grew by 6.4% in the first half of 2024, following a positive 5.1% growth in 2023. The recovery of the global economy and effective solutions for the domestic real estate market will drive Vietnam’s economic growth, which Fitch predicts will hover around 7% in the medium term. These conditions are favorable for the banking sector and Sacombank in particular.

According to Fitch, Sacombank's asset quality score is rated ‘b+’/stable. The funding and liquidity score is ‘bb-‘/stable. The loan portfolio structure has expanded to support business production and stimulate consumption, resulting in a risk portfolio score of ‘b+’/stable. Sacombank's equity and profitability are expected to improve significantly in the coming years as the Bank completes its restructuring and increases its core business activities.

After more than seven years of implementing the Restructuring Plan, Sacombank has resolved most of the existing issues and essentially achieved key objectives. The Bank has recovered and resolved over 80% of bad debts and outstanding assets, fully provisioned as per regulations, including 100% provisioning for unresolved VAMC debts. Asset quality has continuously improved, with the proportion of earning assets in total assets raised to over 91%. The business scale has been continuously boosted, growing by an average of 10-13% per year. Digital transformation has been accelerated to enhance management capabilities and develop multi-utility service products, meeting customers' digital banking needs. Profits have increased 62 times from VND 156 billion in 2016 to VND 9,595 billion in 2023.