A transaction office of LienVietPostBank (Photo: LienVietPostBank)

Hanoi (VNA) – The Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) has revised down many business targets for 2018, citing different reasons for this decision.

Chairman of the bank’s Board of Directors Nguyen Dinh Thang said on August 15 that the pre-tax profit is now targeted at 1.2 trillion 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 trillion VND (8.2 billion USD) to 180 trillion VND (7.78 billion USD).

It also aims to mobilise 160 trillion VND (6.9 billion USD) from individuals, businesses and economic organisations in the market, instead of 170 trillion VND (7.3 billion USD). The planned outstanding loans are also cut down from 123.5 trillion VND (5.3 billion USD) to about 117.5 trillion VND (5 billion USD).

The bank sets the minimum rate of dividend payment at 10 percent, down from 12 percent, Thang noted.

Meanwhile, some other targets like charter capital (over 9.87 trillion VND or 425.7 million USD) and bad debt rate (under 1.5 percent) are kept unchanged.

He explained that the total asset, capital mobilisation and outstanding loan targets are reduced to match this year’s credit room set by the central bank. LienVietPostBank initially planned to achieve a credit growth rate of 20 percent, but the central bank only permitted 14-percent growth.

It had to revise the profit goal as in 2018 and 2019, the strategy is to focus on infrastructure development, particularly expanding the 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 the downgraded pre-tax profit target of 1.2 trillion VND, Thang said, adding that the 10-pecent rate still meets investors’ expectation and is a good rate in the finance-banking sector. –VNA