Analysis Report of Saigon Thuong Tin Comercial Bank Advantages

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- Set in a lower propotion than net loans/total assets ratios, Cash & due/total assets and Cash assets& government securities/total assets were around 10%.

- The proportion of cash assets & government securities in assets had a stable trend with only a light declining because Sacombank raised their Government securities amount, balance with the cash propotion decreasing from 15% to 4.5% Extending the amount of Government securities during a difficult period had been a safety way to maintain solvency ability and reduce liquidity risk. This pointed out that Sacombank was stablizing their liquidity well.

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Market risk

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Price risk

[pic 22] [pic 23]

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Interest rate risk

Regarding to the General analysis in II.1, we can see that Sacombank is focusing on long-term liabilities and short-term loans. This make assets of the bank be more interest- sensitive than its liabilities. In the next few years when interest rate is expected to climb up, this positive Gap can help Sacombank gain more.

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Operating risk

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The ratio equity capital / total asset ratio fluctuated between 0.06 and 0.08, the highest of this ratio was 0.078 ( times) in 2013 and the lowest ratio was 0.066 in 2014. The reason why the highest ratio is suddenly decreased strongly in 2014 is: Equity Capital in 2013 and 2014 were not changed but total assets was increased quickly (about 28,425,014 million VND ~0.176% compare with 2013). It could be a good point show how the increasing on total asset was explained by the increasing on deposits from customers. [pic 26][pic 27]

***Off-balance-sheet items

Of-balance-sheet items of Sacombank are contingent liabilities. These include Borrowing commitments, Letter of credit commitments and Other guarantees Sacombank makes to other firms and institution.