Vietcombank shareholders on April 19approved a lower profit target for the year, cutting the bank’sestimated take this year by 10 percent from earlier forecasts to 4.5trillion VND (236.84 million USD).
“Deposits are expected to grow more quickly than credit this year, butthere will be more pressure from deposit interest payments, so we havecut profit estimates by 420 billion VND (22.11 million USD),” explainedVietcombank general director Nguyen Phuoc Thanh.
In the first quarter of this year, deposits rose by just 1-2 percent,while credit grew by 6 percent. First quarter profits were estimated atabout 1.4 trillion VND (73.68 million USD).
Vietcombank projects deposits to grow by 23 percent this year, up fromlast year’s rate of 19.5 percent, while credit growth is projected toreach 20 percent, down from last year’s 25.9 percent. Total outstandingloans by the end of the year are projected to hit 169.94 trillion VND(8.94 billion USD), with bad debts to be kept under 3.5 percent.
The bank will double its risk provision fund this year to 1.5 trillionVND (78.9 million USD) and expects total assets by December 31 to growby 15 percent over last year to 293.8 trillion VND (nearly 15.5 billionUSD).
The general shareholders meeting also approved a plan to increasecharter capital from 12.1 trillion VND (636.84 million USD) to 17.58trillion VND (925.63 million USD).
“The capital increase aims to ensure a capital adequacy ratio of 10percent of total capital, Thanh said, explaining that the increase wouldtake place in two phases in the second and fourth quarters, incoordination with an offer of additional shares to existing shareholdersat a ratio of 33:100. The shares would be priced at 10,000 VND pershare.
Additional capital would be allocated to strategic investments,infrastructure improvements and increased credit growth, Thanh said.
The State Bank of Vietnam late last week was appointed therepresentative of State-owned capital in Vietcombank, replacing theState Capital Investment Corporation (SCIC), Vietcombank remains over90.7 percent State-owned.
The State Bank elected Vietcombank chairman Nguyen Hoa Binh, generaldirector Nguyen Phuoc Thanh and audit committee chairman Pham Huyen Anhto represent State interests on the board of management./.
“Deposits are expected to grow more quickly than credit this year, butthere will be more pressure from deposit interest payments, so we havecut profit estimates by 420 billion VND (22.11 million USD),” explainedVietcombank general director Nguyen Phuoc Thanh.
In the first quarter of this year, deposits rose by just 1-2 percent,while credit grew by 6 percent. First quarter profits were estimated atabout 1.4 trillion VND (73.68 million USD).
Vietcombank projects deposits to grow by 23 percent this year, up fromlast year’s rate of 19.5 percent, while credit growth is projected toreach 20 percent, down from last year’s 25.9 percent. Total outstandingloans by the end of the year are projected to hit 169.94 trillion VND(8.94 billion USD), with bad debts to be kept under 3.5 percent.
The bank will double its risk provision fund this year to 1.5 trillionVND (78.9 million USD) and expects total assets by December 31 to growby 15 percent over last year to 293.8 trillion VND (nearly 15.5 billionUSD).
The general shareholders meeting also approved a plan to increasecharter capital from 12.1 trillion VND (636.84 million USD) to 17.58trillion VND (925.63 million USD).
“The capital increase aims to ensure a capital adequacy ratio of 10percent of total capital, Thanh said, explaining that the increase wouldtake place in two phases in the second and fourth quarters, incoordination with an offer of additional shares to existing shareholdersat a ratio of 33:100. The shares would be priced at 10,000 VND pershare.
Additional capital would be allocated to strategic investments,infrastructure improvements and increased credit growth, Thanh said.
The State Bank of Vietnam late last week was appointed therepresentative of State-owned capital in Vietcombank, replacing theState Capital Investment Corporation (SCIC), Vietcombank remains over90.7 percent State-owned.
The State Bank elected Vietcombank chairman Nguyen Hoa Binh, generaldirector Nguyen Phuoc Thanh and audit committee chairman Pham Huyen Anhto represent State interests on the board of management./.
