A transaction office of LienVietPostBank (Photo: LienVietPostBank) Hanoi (VNA) – The Lien Viet PostJoint Stock Commercial Bank (LienVietPostBank) has revised down many businesstargets for 2018, citing different reasons for this decision.
Chairman of the bank’s Board of Directors NguyenDinh Thang said on August 15 that the pre-tax profit is now targeted at 1.2trillion VND (51.8 million USD), down from the initial goal of 1.8 trillion VND(77.7 million USD). The total asset value target is reduced from 190 trillionVND (8.2 billion USD) to 180 trillion VND (7.78 billion USD).
It also aims to mobilise 160 trillion VND (6.9billion USD) from individuals, businesses and economic organisations in themarket, instead of 170 trillion VND (7.3 billion USD). The planned outstandingloans are also cut down from 123.5 trillion VND (5.3 billion USD) to about117.5 trillion VND (5 billion USD).
The bank sets the minimum rate of dividendpayment at 10 percent, down from 12 percent, Thang noted.
Meanwhile, some other targets like chartercapital (over 9.87 trillion VND or 425.7 million USD) and bad debt rate (under1.5 percent) are kept unchanged.
He explained that the total asset, capitalmobilisation and outstanding loan targets are reduced to match this year’scredit room set by the central bank. LienVietPostBank initially planned toachieve a credit growth rate of 20 percent, but the central bank only permitted14-percent growth.
It had to revise the profit goal as in 2018 and2019, the strategy is to focus on infrastructure development, particularly expandingthe network of branches. This will raise expenses on construction,technological infrastructure and personnel, which in turn will decrease profit.
The lower dividend payment rate is to match thedowngraded pre-tax profit target of 1.2 trillion VND, Thang said, adding thatthe 10-pecent rate still meets investors’ expectation and is a good rate in thefinance-banking sector. –VNA
VNA
