Sacombank's ratings on key indices upgraded by Moody’s


Sacombank has recently been upgraded by the world-leading credit rating agency Moody’s in its Long-term Local and Foreign Currency Issuer and Deposit Ratings by one notch.

Specifically, Moody’s upgraded Sacombank's Long-term Local and Foreign Currency Issuer and Deposit Ratings from B3 to B2. The Baseline Credit Assessment (BCA) and Adjusted BCA of Sacombank were upgraded from Caa1 to B3. Additionally, Moody’s upgraded the Long-term Counterparty Risk Ratings (CRR) in Local and Foreign Currency and the Counterparty Risk Assessment (CR) from B2 to B1.

According to Moody’s, the upgrade is due to Sacombank's significant handling of non-performing assets, which helped improve asset quality and profitability. Moody's also considered Sacombank's strong deposit base, enhancing the bank's funding ability and liquidity.

Sacombank has a strong fundraising network through a vast branch system, supporting its ability to attract new deposits at a lower cost compared to some other similarly ranked banks. The proportion of interbank funding in total assets was 7.7% at the end of June 2023, one of the lowest among its peers.

The bank's problematic assets only accounted for 2.2% of total assets at the end of 2023 (down from 2.7% the previous year), after provisioning. The bank is fully capable of adequately managing the provisions that may be needed for these assets. Moreover, Moody’s believes that the return on assets (ROA) will be bolstered by a higher net interest margin (NIM) in the future.

At the end of 2023, Sacombank was awarded a certificate by EY Vietnam Joint Stock Company for completing the implementation of the BASEL III risk management standard - a high-level risk management standard in bank risk management. Sacombank was also ranked 322/500 by Brand Finance among the world's largest banking brands. This is the fifth consecutive year Sacombank has been ranked by Brand Finance, jumping 100 ranks since 2020. These achievements are a testament to Sacombank's efforts in investing and innovating its management and business models in line with technological trends, thereby enriching user experiences aligned with habits and needs.

As of the end of 2023, Sacombank's total asset size reached over VND 674,000 billion, an increase of 13.9% since the beginning of the year. Total deposits reached over VND 578,000 billion, up by 11.3%; focusing on an 8.8% increase in CASA deposits. The consolidated CAR ratio was 9.11%, the LDR ratio reached 82.77%, and the NIM rate was 3.9%. The ROA and ROE ratios were 1.22% and 18.30%, respectively, increasing by 0.31 and 4.47%. Currently, Sacombank is serving over 18 million customers.