Return on Equity is a measurement of how effectively a business uses equity or the money contributed by its stockholders and cumulative retained profits to produce income As can be seen in the comparison table, the ROE of 2019 is 2.08% higher than that of 2018 The rising in ROE of Sacombank tells us that the bank’s profit generation was increasing without as much capital needed It also indicates how well Sacombank’s management deploys shareholder capital An increase in ROE results from an increase in the value of Equity Multiplier That ratio of Sacombank increased slightly, at 16.96X It was not too low or too high multipliers since according to Bank Management and Financial Services (The McGraw – Hill_Irwin Series in Finance, Insurance, and Real Estate 2010), this ratio is normally the largest, averaging 10X or more for most banks Bigger banks sometimes operate with multipliers of 20X or more The higher a company’s equity multiplier, the higher it's debt ratio because it indicates that a significant portion of a firm’s assets is financed by debt The larger the multiplier, the more exposed to failure risk the financial institution is However, the larger the multiplier, the greater the potential for high returns for the stockholders A low multiplier indicates that neither the firm is unable to obtain debt from lenders nor the management is avoiding the use of debt to purchase assets From the Consolidated financial statement of Sacombank 2019, Earning per share was increased from VND 780 million to VND 1,119 million P/E Ratio and EPS are a negative relationship so as the rise in EPS, the P/E ratio decreases by 4.66% compared to 2018 (12.04%) Decreasing the P/E ratio and rising in EPS in lead to the decrease of share price, from VND 9,391.2 to VND 8,228.22 (chỗ t k đơn vị) The Return on Assets shows how well a company utilizes its assets, by determining how profitable a company is relative to its total assets In comparison table, ROA in 2019 increased slightly from 0.11% to 2018 (0.46%) The higher ROA, the better management Net Interest Margin (or NIM) is the most important indicator for all banks because it acts as the pulse that can show the health of the bank NIM measures how large a spread between interest revenues and interest costs management has been able to achieve by close control over earning assets and pursuit of the cheapest sources of funding If NIM is negative, it means that the bank is not making the right business decisions Simply, the bank has lost money on expenses more than what it has earned from its investments With NIM of Sacombank, it was positive in both 2018 and 2019 It rose slightly from 2.33% in 2018 to 2.44% in 2019 The figure told us that Sacombank was using its assets effectively and credit growth is over accretive than deposit growth The higher margin, the higher profit for the bank will be In contrast with NIM, Net Noninterest Margin measures the amount of non – interest revenues stemming from services fees the financial firm has been able to collect relative to the number of noninterest costs incurred The increasing in Net Noninterest Margin of Sacombank shows that ………… (need help) Net Operating Margin indicates how well management and staff have been able to keep the growth of revenues ahead of rising costs Evidence for the effectiveness of management is showed by the climbing of Net Operating Margin from 6.73% to 6.90% The earnings spread measures the effectiveness of a financial firm’s intermediation function in borrowing and lending money and also the intensity of competition in the firm’s market area Earning spread increased from 2.69% (2018) to 2.77% (2019) Net Profit Margin is one of the most important indicators of a company’s financial health, which helps investors evaluate if the management of a business generates enough profit from its sales and whether operating costs and overhead costs are being contained As can be seen in the comparison table, Net Profit Margin rose 1.01%, from 5.95% (2018) to 6.96% (2019) It means that Sacombank performed better than the previous year Asset Utilization is important to a company because its success is often related to its capacity to manage and leverage its assets With 7.78% asset utilization of Sacombank, they still good in controlling its assets Tax Management Efficiency of Sacombank soared nearly times from the previous year (from 1.78% to 6.29%) It means that Sacombank lost 6.29% of their income after tax to taxation The tax-management efficiency ratio reflects the use of security gains or losses and other tax-management tools (such as buying taxexempt bonds) to minimize tax exposure In contrast with Tax Management Efficiency, Expense Control Efficiency reduced from 8.61% to 2.66% That number indicates that Sacombank performed well in controlling expenses Asset Management Efficiency, Funds Management Efficiency and Operating Efficiency ratio increased slightly A rise in the value of the Operating Efficiency ratio of Sacombank indicates an expense control problem because the total operating expense of this bank increased more than 1X to that of 2018 In 2019, Sacombank’s total net income reached 2,454 billion dong positively, increased up to approximately 27.08% over 2018, which showed a good sign of Sacombank’s profitability On which, the net interest income achieved more than billion dong, rised by 16.85% compared with its data in the previous year According to the statistics above, Sacombank’s total assets gained nearly 453,600 billion dong, decreased slightly from 2018 to 2019 (406 billion to 453 billion respectively) Its total liabilities and total equity captial illustrated a small change between years Total interest income rised 7.89% to reach closely VND 30.5 billion in 2019, while as one of the top 10 Vietnamese banks with the largest non-interest income recently, Sacombank’s non-interest income was worth VND 6.3 million (25.19% higher than 2018) In addition, the fee and commission income in 2019 was increasing 21.5% over the past year Among with interest and noninterest income, the bank’s total interest expense rised up to 12.4% at 21.3 billion dong, and its total non-interest expense performed a small number of 1.5 billion dong In the business operation, the figure for total operating revenue and total operating expense increased concurrently to reach VND 35,28 billion and 9,26 billion respectively, resulting in the growth of 20.2% in total operating income to reach VND 14,63 billion This number may satisfy the bank’s investors, owners and its shareholders because the higher the operating income, the more profitable a bank’s core business achieve In addition, the earning asset also went up to 12.3% from 2018 to 2019 and gained 3.77 trillion dong in total throughout 2019 In contrast, Sacombank’s total interest bearing liabilities rised from 3.54 trillion to more than trillion dong, which means that the corporation must pay more interest of debts to finance even if it plans to pay off the account in a very short-term (less than a month) Moreover, while 2018 recorded the net gain from investment securities of positively 18 thousand dong (P/s: chỗ số liệu 18004 t không hiểu 18 nghìn à), 2019 stated a huge decrease in the number to 50 thousand dong negatively (or in other words, between the two years, investment securities changed badly from net gain to net loss) A special highlight of the bank’s performance is its profit before tax, which was exceeded the plan committed at the Shareholders’ General Meeting by 21.4% profitability gradually improved The statistics showed that profit before tax in 2019 drastically up to 43.2% to reach 3,217 billion dong P/s: Phanh với Lan báo cáo thường niên ghi profit before tax năm 2019 Sacombank 3,217 tỉ đồng với t search google website sacombank + báo Mà bảng t lại thấy ghi 440551 (?) nên thử check lại xem Link báo cáo thường niên (ở trang 24): https://www.sacombank.com.vn/en/company/BaoCaoThuongNien/2019/20200418_ STB_AR2019_Eng.pdf Finally, although provision for loan loss can lower operating profits, the corporation accepted to increase its ratio from -1.97% to -1.62% to prevent risks better In short, inspite of some unwanted decrease in some statistics, Sacombank still affirm that they did really well in 2019, they have the ability and high potential to develop significantly in the future and hold their position as one of the Top bankes in Vietnam stably REFERENCES: Inc staff, (2020, Feb 6) Return on Assets Retrieved from https://www.inc.com/encyclopedia/return-on-assets-roa.html Interpreting operating profit margins versus net profit margins Retrieved from https://www.motilaloswal.com/blog-details/Interpreting-operating-profit-marginsversus-net-profit-margins /1621 What is Equity Multipliers? Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/finance/equitymultiplier/#:~:text=Any%20increase%20in%20the%20value,lower%20overall %20cost%20of%20capital ... closely VND 30.5 billion in 2019, while as one of the top 10 Vietnamese banks with the largest non-interest income recently, Sacombank’s non-interest income was worth VND 6.3 million (25.19% higher... expense rised up to 12.4% at 21.3 billion dong, and its total non-interest expense performed a small number of 1.5 billion dong In the business operation, the figure for total operating revenue... profitable a bank? ??s core business achieve In addition, the earning asset also went up to 12.3% from 2018 to 2019 and gained 3.77 trillion dong in total throughout 2019 In contrast, Sacombank’s total