Sacombank's recently published financial report detailed a significant workforce reduction. The bank's staff decreased by nearly 2,570 people in the first Quarter, with an additional 1,170 streamlined in the subsequent three months.
This marks Sacombank's most substantial staff adjustment in years. The bank led the industry in workforce reduction during the first half of this year, decreasing from over 15,850 to approximately 12,100 employees.
Sacombank implemented a new organizational model starting January. The bank's operational structure, previously comprising 13 blocks, has been consolidated to 9. Several departments, including personal customers, digital banking, credit, risk management, administrative management, and human resources, were streamlined.
At the business network level, Sacombank also reorganized its regional offices, branches, and transaction offices. This restructuring aimed to reduce intermediate layers, enhance autonomy, and concentrate resources on potential markets.
The bank stated that the ratio of front office (sales) to back office (support and operations) personnel was optimized to 80-20. This optimization aims to bolster the direct sales force, improve customer service capabilities, and ensure effective cost control.
Sacombank allocated approximately 3,700 billion VND to staff costs in the first half of the year, a 5% decrease compared to the same period last year. Salaries and allowances accounted for about 86% of this amount, with the remainder covering salary-based contributions, benefits, and uniforms.
"Streamlining the organizational structure and transitioning to a vertical model are crucial foundations for completing the restructuring plan, reducing non-performing loans, improving net interest margin (NIM), ensuring operational safety indicators, and enhancing provision coverage," said Ha Van Trung, Sacombank's Permanent Deputy General Director, at an event in mid-3.
The reduction in staff costs contributed to Sacombank's improved operational efficiency. In the first half of the year, the bank reported a net profit of over 11,000 billion VND from business operations, a 33% increase year-on-year. However, credit risk provisions, which were seven times higher than the same period last year, eroded pre-tax profit to 4,000 billion VND, nearly half of what it was in the first six months of last year.
Sacombank aims for a pre-tax profit of 8,100 billion VND this year, just 6% higher than last year. This conservative target reflects a focus on increasing risk provisions amid rising market risks. The bank's leadership stated that instead of pursuing rapid short-term growth, they prioritize setting aside risk provisions to boost non-performing loan coverage.
"This not only optimizes asset quality but also ensures sustainable development and long-term risk resilience," Sacombank's leadership stated at the annual meeting.
As of late June, Sacombank's total assets exceeded 882,000 billion VND, a decrease of approximately 3% compared to the beginning of the year. Credit outstanding stood at over 621,000 billion VND.
Phuong Dong
