The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) aims for increases of 15 percent in both mobilised capital and credit in 2018. (Photo: cafef.vn)
Hanoi (VNA) - The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)aims for increases of 15 percent in both mobilised capital and credit in 2018.
It also plansto cut non-performing loan ratio (NPL) to below 1.5 percent and a rise of 14percent in total asset.
The targetswere announced at the annual shareholders’ meeting of the bank on April 27.
Vietcombankchairman Nghiem Xuan Thanh also informed the shareholders on plans to add 10percent to its tier-1 capital in 2018 through issuing shares for foreigninvestors.
He said thecapital raise proposal was approved by the State Bank of Vietnam and theGovernment in December 2017. The action aims to secure the bank’s capitaladequacy ratio of nine percent in accordance with Basel II standards.
The number of to-be-issued shares would not exceed10 percent of the bank’s total number of shares, which is now nearly 3.6billion.
Vietcombank will issue additional shares to amaximum of 10 foreign investors, chairman Thanh said.
Vietcombank general director Pham Quang Dung saidthe Japanese bank Mizuho, one of the largest shareholders at Vietcombank, wouldpurchase more shares to assure its ownership in the bank at 15 percent.
Some foreign investors had expressed interests inbuying Vietcombank shares, Dung said, adding that some of them had offered topurchase all of the bank’s additional shares.
The shareholder meeting adopted the list of thebank’s management board for the 2018-2023 term with eight members.
Two new memberson the board are Truong Gia Binh, chairman of the technology-communicationsgiant FPT Corporation, and Hong Quang, head of the personnel department ofVietcombank.
The totalnumber of board members at Vietcombank was approved by shareholders to up to11, meaning there are still three seats left empty at the bank.
Vietcombank also projects its pre-tax profit willrise 14.6 percent year on year to 13 trillion VND from its record-high 11.3trillion VND made in 2017.-VNA
