VPBanks Profit Target In 2020 Declines By Onepct

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According to the documents at the 2020 Annual general Meeting (AGM) of Vietnam Prosperity Commercial Joint Stock Bank (VPBank, HoSE: VPB) aims to increase total assets by 12.7 percent to 425.132 trillion dong, customer deposits and valuable papers by 10 percent to 299.728 trillion dong, and outstanding credit by 12 percent to 304.744 trillion dong. The bank will control bad debt ratio below three percent.

The bank’s pre-tax profit target is set at 10.214 trillion dong, down by one percent compared to 2019.

VPBank’s executive board stated that since the banking industry will suffer direct impacts from the Covid-19 pandemics on a global scale, scenarios with lower growth rates are built.

Appropriate policies will be implemented by the government and the State Bank of Vietnam (SBV) to support the economy in the near future. It is forecasted that the credit growth ceiling will be regulated by the SBV at 14%, along with the prudent monetary policy which still ensures support for the economic growth. The operational safety ratios of the banking system will tend to be tightened under a roadmap to ensure long-term growth.

In this context, the bank’s executive board will focus the efforts on consolidating and upgrading critical foundations in terms of technology, operations and risk management, etc., and build a digital banking plartform and a complete ecosystem to carry out Open banking strategy.

VPBank hopes that in the optimistic scenario when the pandemic situation is stabilised in Vietnam and other countries by the end of the second quarter (Q2), the economy will recover after that. This will be an opportunity for production and business activities to resume and banks regain growth momentum.

The bank will propose shareholders to retain all profits in 2019 to serve business activities. At the same time, the bank’s Board of directors (BOD) will submit a plan to issue 17 million shares to employees (Employee Stock Ownership Plan (ESOP) with expected selling price of 10,000 dong per share from treasury share source. The ESOP shares will be restricted to transfer with a maximum clearance of 30 percent after one year, 35 percent after two-years, and 35 percent after three years.

In addition, the bank’s BOD will also propose shareholders for approval of the BOD’s assignments and tasks, such as establishing or acquiring other subsidiaries and affiliated companies to perform the business lines allowed under the provisions of the law and relevant guiding documents; or carrying out corporation opportunities or other forms with other credit institutions, etc. with a value from 20 percent of the charter capital; approving the plan to sell investment capital (contributed capital and shares) of VPBank in subsidiaries; and some other contents.

At the AGM, shareholders will also elect the BOD and Board of Supervisory (BOS) for the term of 2020 2025. The BOD candidates include Ngo Chi Dung, Bui Hai Quan, Lo Bang Giang, Nguyen Duc Vinh, Nguyen Van Phuc, who are approved by the SBV, of which Nguyen Van Phuc is the independent BOD member.

The candidates for the BOD include Nguyen Thi Mai Trinh, Trinh Thi Thanh Hang, Kim Ly Huyen, and Vu Hong Cao.

 

Category: Finance, Vietnam

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