Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam’s largestbank Vietcombank will not lower lending standards in the post-pandemic stage tokeep capital healthy in 2020, chairman Nghiem Xuan Thanh has said.
The bank will raise the quality of credit to cope with the country’s economicdevelopment after the COVID-19 pandemic is over, he said at the bank’s annualshareholder meeting on June 26.
Vietcombank will overhaul business activities to reduce the quantity of lendingand increase retail sales, which include service charging and capitalinvestment, the chairman said.
The bank will look for new customers, review wholesale credit policy, increaseinvesting in financial bonds and improve its banking investment division, Thanhadded.
In 2020, Vietcombank eyes total asset rising 7 percent year-on-year to 1.3quadrillion VND (55.9 billion USD). Raised capital is projected to gain 8 percentyear-on-year to 1 quadrillion VND and outstanding loans are forecast to increaseby 10 percent year-on-year to 815.5 trillion VND.
The bad debt ratio is set to be kept below 1.5 percent in 2020, with thedividend rate 8 per cent for this year and the bonus paid in cash orshares.
Vietcombank did not set a specific earnings target for 2020.
The performance will be decided upon Vietnam’s economic development in thepost-virus stage and the earnings plan will have to be pending for the centralbank’s approval, chairman Thanh said.
At a meeting in mid-April, deputy governor of the State Bank of Vietnam DaoMinh Tu asked all State-controlled banks to cut at least 40 percent of totalprofit to help local businesses deal with COVID-19.
Vietcombank recorded little annual change in its six-month profit. The figurein the first half of 2019 was 11.3 trillion VND.
In 2020, the bank will raise its charter capital by issuing bonus shares andselling shares in a private deal to raise its capital adequacy ratio (CAR) tothe minimum 9.24 percent under Basel II standard.
Vietcombank will issue dividend shares at an 18 percent ratio to up chartercapital by 6.67 trillion VND to 43.76 trillion VND in the third or fourthquarter of the year.
In addition, a maximum of 241 million shares or 6.5 percent of the bank’scapital, will be sold in a private deal to raise some 2.41 trillion VND forcharter capital.
The bankalso plans to hire more than 2,200 new employees in 2020./.
The bank will raise the quality of credit to cope with the country’s economicdevelopment after the COVID-19 pandemic is over, he said at the bank’s annualshareholder meeting on June 26.
Vietcombank will overhaul business activities to reduce the quantity of lendingand increase retail sales, which include service charging and capitalinvestment, the chairman said.
The bank will look for new customers, review wholesale credit policy, increaseinvesting in financial bonds and improve its banking investment division, Thanhadded.
In 2020, Vietcombank eyes total asset rising 7 percent year-on-year to 1.3quadrillion VND (55.9 billion USD). Raised capital is projected to gain 8 percentyear-on-year to 1 quadrillion VND and outstanding loans are forecast to increaseby 10 percent year-on-year to 815.5 trillion VND.
The bad debt ratio is set to be kept below 1.5 percent in 2020, with thedividend rate 8 per cent for this year and the bonus paid in cash orshares.
Vietcombank did not set a specific earnings target for 2020.
The performance will be decided upon Vietnam’s economic development in thepost-virus stage and the earnings plan will have to be pending for the centralbank’s approval, chairman Thanh said.
At a meeting in mid-April, deputy governor of the State Bank of Vietnam DaoMinh Tu asked all State-controlled banks to cut at least 40 percent of totalprofit to help local businesses deal with COVID-19.
Vietcombank recorded little annual change in its six-month profit. The figurein the first half of 2019 was 11.3 trillion VND.
In 2020, the bank will raise its charter capital by issuing bonus shares andselling shares in a private deal to raise its capital adequacy ratio (CAR) tothe minimum 9.24 percent under Basel II standard.
Vietcombank will issue dividend shares at an 18 percent ratio to up chartercapital by 6.67 trillion VND to 43.76 trillion VND in the third or fourthquarter of the year.
In addition, a maximum of 241 million shares or 6.5 percent of the bank’scapital, will be sold in a private deal to raise some 2.41 trillion VND forcharter capital.
The bankalso plans to hire more than 2,200 new employees in 2020./.
VNA
