Vietinbank shareholders meeting on April 4 approved a proposal to increase the bank’s charter capital from 18 trillion VND (947.4 million USD) to 20 trillion VND (just over 1 billion USD), as well as a plan to pay a dividend of 14-15 percent.
To raise additional capital, the Hanoi-based bank will issue 351.1 million new shares to existing shareholders at 10,000 VND each.
The bank has also received in-principle approval to sell a 10-percent stake to the International Finance Corporation (IFC) in the third or fourth quarter of this year and was still waiting on approval to sell another 15 percent to Canada ’s Nova Scotia Bank, with the possibility of increasing the stake to 20 percent.
“The strategic investor desires to own the largest stake allowed and is seeking permission to buy Vietinbank shares on the Ho Chi Minh Stock Exchange,” Vietnamese chairman Pham Huy Hung told reporters on the sidelines of the general shareholders meeting.
At the meeting, Hung clarified for shareholders a rumours that the bank had suffered losses of millions of dollars by leasing land in the Ciputra project that was never conveyed.
“Vietinbank definitely has not suffered losses on the leased property,” Hung said. “Since the project’s developer, Citra Westlake Development Co Ltd, has not conveyed the land, Vietinbank has paid only 102 billion VND (5.3 million USD). The remaining 750 billion VND (39.47 million USD) is being held in escrow at Vietinbank’s Hanoi branch.”
In 2007, Vietinbank signed a contract with Citra Westlake to lease a 30,000sq.m building site over a 40-year period at 1,800 USD/sq.m, totaling 54 million USD. After two years, however, no work has been done on the project and maney have begun to wonder whether the bank were simply losing money on the leased land.
“The delays are because of Citra’s failure to settle outstanding land clearance issues,” said Hung. “Clearance will be finalised no later than June.”
Vietinbank has signed London-based architects Forster & Partners to design the planned building, to be called Vietinbank Tower . The bank now expected to break ground on the project later this year or early next year.
Vietinbank posted a profit last year of over 3 trillion VND ( 157.89 million USD). As of December 31, 2009, it had total assets of 240 trillion VND (12.63 billion USD), an increase of 26 percent over the previous year. Bad debts accounted for 967 billion VND (50.89 million USD), or 0.61 percent, of total outstanding loans.
Shareholders this week approved a 6.83 percent dividend, to total 769 billion VND (40.47 million USD), on profits from the latter half of 2009.
For 2010, the bank has targeted a profit this of 4 trillion VND (210 million USD), up 18 percent over last year, as well as total deposits up 20 percent by the end of the year, and assets on December 31 of 300 trillion VND (15.78 billion USD), an increase of 20 percent./.
To raise additional capital, the Hanoi-based bank will issue 351.1 million new shares to existing shareholders at 10,000 VND each.
The bank has also received in-principle approval to sell a 10-percent stake to the International Finance Corporation (IFC) in the third or fourth quarter of this year and was still waiting on approval to sell another 15 percent to Canada ’s Nova Scotia Bank, with the possibility of increasing the stake to 20 percent.
“The strategic investor desires to own the largest stake allowed and is seeking permission to buy Vietinbank shares on the Ho Chi Minh Stock Exchange,” Vietnamese chairman Pham Huy Hung told reporters on the sidelines of the general shareholders meeting.
At the meeting, Hung clarified for shareholders a rumours that the bank had suffered losses of millions of dollars by leasing land in the Ciputra project that was never conveyed.
“Vietinbank definitely has not suffered losses on the leased property,” Hung said. “Since the project’s developer, Citra Westlake Development Co Ltd, has not conveyed the land, Vietinbank has paid only 102 billion VND (5.3 million USD). The remaining 750 billion VND (39.47 million USD) is being held in escrow at Vietinbank’s Hanoi branch.”
In 2007, Vietinbank signed a contract with Citra Westlake to lease a 30,000sq.m building site over a 40-year period at 1,800 USD/sq.m, totaling 54 million USD. After two years, however, no work has been done on the project and maney have begun to wonder whether the bank were simply losing money on the leased land.
“The delays are because of Citra’s failure to settle outstanding land clearance issues,” said Hung. “Clearance will be finalised no later than June.”
Vietinbank has signed London-based architects Forster & Partners to design the planned building, to be called Vietinbank Tower . The bank now expected to break ground on the project later this year or early next year.
Vietinbank posted a profit last year of over 3 trillion VND ( 157.89 million USD). As of December 31, 2009, it had total assets of 240 trillion VND (12.63 billion USD), an increase of 26 percent over the previous year. Bad debts accounted for 967 billion VND (50.89 million USD), or 0.61 percent, of total outstanding loans.
Shareholders this week approved a 6.83 percent dividend, to total 769 billion VND (40.47 million USD), on profits from the latter half of 2009.
For 2010, the bank has targeted a profit this of 4 trillion VND (210 million USD), up 18 percent over last year, as well as total deposits up 20 percent by the end of the year, and assets on December 31 of 300 trillion VND (15.78 billion USD), an increase of 20 percent./.
