Southeast Asia’s many financial hubs have been making great financial gains recently, including Vietnam, because the country’s economy appeals to a wider international investor base. Naturally, a number of banks and financial institutions have diversified to take advantage. World Finance spoke with Saigon Commercial Bank (SCB) Chairman Dinh Van Thanh to find out how the bank has leveraged its growth.
Last year the maintenance and stabilisation of operations at SCB performed well. What other accomplishments have been notable?
The stabilisation and maintenance of operations has been paramount to the bank’s progress. On top of that, reinforcement and enhancement of our financial competence, corporate management and quality risk management were among SCB’s significant business targets during the course of the year.
The increase of chartered capital for the bank… is one of the important parts of the restructuring plans of the State Bank of Vietnam
In 2014, SCB rolled out new deposit products appropriate to each customer segment, delivered more utilities appropriate to modern banking services, as well as extending credit to a number of prioritised industries and sectors under the guidelines of the Government and the State Bank of Vietnam.
Further to that, SCB also achieved the key targets of our restructuring process: stable liquidity, consistent growth in mobilised funds, NPL ratio under the regulated level, and the financial competence has been reinforced by the increased chartered capital and improved prudent ratios.
In tandem with the restructuring, the bank also focused on its corporate management quality as well as our internal control system. We have improved our risk management in line with international standards, re-arranged the transaction network; and improved the quality and the efficient allocation of human resources.
SCB has been actively pursuing a target of increased chartered capital to enhance its financial scope. How was this done?
The increase of chartered capital for the bank – as well as for the whole system of commercial banks – is one of the important parts of the restructuring plans of the State Bank of Vietnam. In 2014, thanks to the support of SCB’s domestic and foreign shareholders, the bank achieved the increase of chartered capital by $91.57m to $654.53m. From 2016 to 2019, SCB will continue its plan of raising capital from existing shareholders as well as potential new foreign investors who express interest in the bank.
What contributions have been made to develop the local community, as well as the bank’s employees?
Within the community, SCB has frequently participated in charitable activities, especially to people in remote areas of the country, and in particular students and soldiers. In addition, SCB has been deeply concerned about the improvement of the material and spiritual life of employees who have taken an important role in the bank’s development.
The operational expansion has reinforced shareholder trust. How will this be maintained in 2015?
With the achievements gained in 2014, this year we will continue to strengthen the financial competence by increasing the chartered capital and the improvement of prudent financial ratios.
Besides, SCB will enhance the stability in its liquidity; restructure mobilised funds with the target of lower cost of funds; and extend credit prudently to various economic sectors, mainly the prioritised industries or sectors.
Along with the business development plan, SCB will concentrate on improving the management capacity by applying information technology solutions into its data analysis, management reports, building up teams of effective managers and qualified sales persons; enhancing the efficiency of communications and marketing, positioning and building the brand recognition system; rearranging the transaction network; fulfilling CSR commitments and facilitating the development of the bank’s workforce.
