Vietcombank plans a profit of over 30,000 billion VND

129 VietcombankIn 2022, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) aims to increase at least 12% of pre-tax profit compared to the previous year, equivalent to over VND 30,676 billion.

This is one of the notable information in the draft document of Vietcombank’s 2022 Annual General Meeting of Shareholders scheduled to take place on April 29 in Hanoi. Also, according to the draft document, Vietcombank plans to grow its total assets by about 8%; credit balance increased by 15%; capital mobilization is expected to increase by 9%, in line with the credit growth rate; bad debt ratio lower than 1.5%.

At the meeting, Vietcombank’s Board of Directors is expected to submit to shareholders to approve the plan to increase charter capital in 2022 through the issuance of shares to pay dividends from the remaining profit in 2019 and 2020.

Specifically, the bank plans to issue 856 million common shares with an issue rate of 18.1%, that is, shareholders owning 1,000 shares at the cut-off date will receive an additional 181 new shares. The number of shares issued to existing shareholders will be rounded down to the number of units, the decimals will be cancelled. For example, a shareholder holding 160 shares at the time of closing the list will receive a new number of shares of 28 shares.

After the successful issuance, Vietcombank’s charter capital will increase from the current 47,325 billion dong to more than 55,891 billion dong. The implementation period is in 2022.

Vietcombank said the additional charter capital will be used in the bank’s business activities on the principle of ensuring safety, efficiency and bringing the highest benefits to shareholders. It is expected to be used for investment in material and technological infrastructure: building working offices, expanding operation network, investing in technology and fixed assets (about VND 500 billion); expanding credit activities, capital trading and other business activities of Vietcombank.

In addition, this meeting is also expected to approve the remuneration for the Board of Directors and Supervisory Board in 2022, up to 0.27% of consolidated profit after tax, in case the profit target is fulfilled. consolidated before tax 2022 according to the assigned plan. In addition, the meeting is also expected to elect an additional member of the Supervisory Board for the 2018-2023 term and submit to shareholders to choose an independent auditing company.

In 2021, Vietcombank recorded a 19% increase in pre-tax profit compared to the previous year, reaching VND 27,389 billion. Total assets reached 1.41 million billion VND, up 7%. Credit balance increased by 15% compared to 2020 and total capital mobilization increased by 9%. The bad debt ratio reached 0.63% and the on-balance sheet bad debt provision ratio was 424%, the highest in the banking industry as well as in the history of this bank.

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