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Banking & Finance

VietinBank targets 2017 profit of $387.6mn

Released at: 14:45, 17/04/2017

VietinBank targets 2017 profit of $387.6mn

Photo: vietinbank.vn

Other targets also announced at AGM on April 17.

by Hai Van

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank - HSX stock code CTG) has set a profit plan for 2017 of VND8.8 trillion ($387.6 million) with a dividend of a maximum 7 per cent, according to a report submitted at its annual general meeting (AGM) on April 17.

The Board of Management acknowledged the need for urgent solutions to improve the bank’s financial capacity and increase its charter capital in 2017. It will prepare plans to increase charter capital from dividends and from increased capital from shareholders, restructure its capital, and propose specific mechanism. No report on increasing its capital was submitted to shareholders at the AGM.

Pre-tax profit for 2016 reached VND8.57 trillion ($337.5 million). The bank proposed a dividend of 7 per cent in cash, the same as in 2015, which will cost an estimated VND2.6 trillion ($114.8 million). Its 2016 AGM approved a dividend and after pressure from the Ministry of Finance paid 7 per cent.

Regarding business plans for 2017, Vietinbank will increase its total assets to VND1,086 trillion ($47.84 billion), up 14 per cent compared to 2016. Outstanding loans are to rise by 16 per cent to VND82.7 trillion ($3.6 billion), total deposits 15 per cent to VND996 trillion ($43.87 billion), and pre-tax profit about 3 per cent, to VND8.8 trillion ($387.6 million).

The bank announced to shareholders the dismissal of two members of the Board of Management: Mr. Michael Knight Ipson, at the request of the IFC Capitalization (Equity) Fund, and Mr. Hiroyuki Nagata, who is also Deputy General Director, as suggested by BTMU. At the same time, the bank expects to add Mr. Hiroshi Yamaguchi from the Bank of Tokyo-Mitsubishi UFJ (BTMU) to the Board for the 2014-2016 term.

With regard to the merger of PGBank into VieitBank, the Board has carried out the necessary works and procedures as required under the guidance of State management agencies. It completed documents required by the State Bank of Vietnam (SBV) last year.

After a review, the SBV requested VietinBank update its valuation of PGBank shares and calculate and negotiate the swap ratio between the bank and PGBank. At the SBV’s request, VietinBank continued to engage independent consultants Deloitte Vietnam to complete this task. VietinBank is now negotiating with PGBank and will report to the central bank.

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