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Kienlongbank makes profit before tax in 2020 to vnd 750 billion

Kien Long Commercial Joint Stock Bank (Kienlongbank) held Annual Business Conference (Conference) to review the 2019 operation and deploy the 2020 business plan. According to reports, consolidated total assets at 31st December 2019 ia VND51,093 billion, increased 20.76% compared to 2018, completing 102.19% of the plan, exceeding VND50,000 billion target by the General Meeting of Shareholders in 2019. 

Deposit mobilization reached VND46,402 billion, up 23.74% compared to 2018, completing 102.66% of the plan. The mobilized deposits of Kienlongbank has been growing steadily in both quantity and quality, timely met capital source for business activities and always complied to safety ratios as prescribed. Outstanding loans reached VND 33,480 billion, up 13.60% compared to 2018, 98.76% of the plan. In parallel with credit development, Kienlongbank strengthened development of small and medium enterprises, individual customers, production and business households of agriculture, forestry, fishery, small businesses and continuously promoted existing strengths. Besides, Kienlongbank always focuses on improving credit quality, ensuring bad debt ratio is strictly controlled in compliance with regulations (1.02%/total loan balance).

Regarding 2019 business results, Kienlongbank's consolidated profit before tax reached 86 billion VND, decreased 204 billion VND, equivalent to a decrease of 70.38% compared to 2018. By explanation of the Board of Directors for decreased consolidated pre-tax profit while all other indicators increased highly is that in December 2019 Kienlongbank recorded a decrease in receivable interests already booked in previous years under the bad debt handling plan approved by the State Bank of Vietnam for loans of customers whose security assets are shares of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank). This effect is only temporary, after finishing security assets, collected funds will be recorded as incomes in future financial statements. 

In 2019, Kienlongbank has completed the premature settlement of all VAMC bonds and will not have to make provisions for this type of bonds from 1st January 2020, thereby contributing to increase profits for Kienlongbank in the near future. 

At the Conference, Kienlongbank set out a number of key tasks for 2020, including plans to handle loans with security assets of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank). Accordingly, Kienlongbank will offer for sale of the above shares in January 2020 and is expected to be completed in 2020.
Currently, Kienlongbank has received full notarized authorizations from borrowers and the property owner that allow Kienlongbank to offer Sacombank's security for shares to recover debts. The settlement of security assets to recover debts will contribute significantly to the Bank’s profit in 2020.
Kienlongbank sets a profit before tax plan of 750 billion VND in 2020 and will submit to the 2020 General Meeting of Shareholders for approval, creating a solid foundation for Kienlongbank to continue developing in safe and effective manner in the near future.
Some photos at the Conference:

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