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STB: Explanation of business activities in quarter 3/2008
Below is explanation Sai Gon Thuong Tin Commercial Joint Stock Bank (STB) for its business activities in quarter 3/2008:
In this quarter, profit before tax of STB was valued at 215 billion dongs, a decline of 111 billion dongs on last quarter (325 billion dongs) because of following reasons:
* In quarter 3, because of high inflation, credit mobilization rates of commercial banks, both state-owned and private banks, stood at high level. In order to keep its market share, STB maintained a competitive deposit rates to its clients, so interest expenses increased strongly in the quarter. As a result, net income of STB and its affiliated companies decreased an amount of nearly 300 billion dongs compared to quarter 2.
* Taking advantages of its wide branch networks, STB diversified its operation in other products besides its traditional interest-based products such as: banking services, foreign exchange trading, as a result, other incomes of the bank and its affiliated companies increased by 170 billion dongs on last quarter, keeps the bank’s profit stable in this severe economic situation.
* The bank also reduced general & administration expenses by 19 billion dongs compared to last quarter.
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