Vietinbank eyes US$728.1 million pre-tax profit

April 17, 2021 - 09:08
Vietinbank (CTG) targeted a pre-tax profit of VNĐ16.8 trillion (US$728.1 million) in 2021, increasing 2.14 per cent from last year.

 

Vietinbank’s chairman Lê Đức Thọ delivered a speech at the 2021 annual general meeting of shareholders. — VNS Photo 

HÀ NỘI — Vietinbank (CTG) targeted pre-tax profit of VNĐ16.8 trillion (US$728.1 million) in 2021, increasing 2.14 per cent from last year.

The information was released at the Vietinbank 2021 annual general meeting of shareholders held in Hà Nội yesterday.

Vietinbank’s chairman Lê Đức Thọ said they proposed to the State Bank of Việt Nam (SBV) a profit growth plan of about 10-20 per cent this year. After consideration, the central bank decided to temporarily assign the profit of VNĐ16.8 trillion as submitted at the meeting.

2021 is the first year VietinBank has complied with Circular 41, raising operational standards under Basel II, which requires the bank to adapt to meet the requirements.

This year, VietinBank aims to increase total assets by 6-10 per cent and maximum credit balance growth of 7.5 per cent according to the SBV’s limit. Its non-performing loans (NPLs) is scheduled at below 1.5 per cent. Capital mobilisation from economic entities and individuals is expected to grow at 8-12 per cent.

Thọ said the bank will continue to work towards recording higher business growth, dramatically improving quality and efficiency, expanding the scale of operations, implementing appropriate credit growth solutions, and effectively balancing capital sources.

It will also promote credit activities in green and environmental protection fields, he added.

He emphasised that the bank will further its implementation of solutions to support customers affected by natural disasters and pandemics, especially the COVID-19 pandemic, in line with directions from the Government and the central bank.

The bank’s NPL ratio was at 0.94 per cent while bad debt coverage was at 132 per cent. VietinBank also bought all special bonds at VAMC in less than two years instead of five years as expected.

At the meeting, the bank submitted two dividend plans. Under the first option, the bank will pay 5 per cent cash dividends, the remainder will be paid in stock dividends at the rate of 17.77 per cent.

Under this plan, at the time of dividend payment, VietinBank has not completed the capital increase from the share dividend from the previous years' profits. Charter capital when implementing the dividend is VNĐ37.2 trillion.

According to the second plan, after paying a five per cent cash dividend, the bank will pay stock dividend at the rate of 12.64 per cent. With this plan, at the time of dividend payment, VietinBank has completed the capital increase through the share dividend from the previous years' profits, the charter capital when implementing the dividend payment is VNĐ48 trillion.

These numbers can be adjusted for credit balance growth and the bank's performance.

However, he said that the specific dividend rate will still have to wait for the SBV and the Ministry of Finance for approval.

Regarding the issue of capital increase, the chairman said there is no plan to adjust the ownership ratio of State shareholders. The State ownership rate in VietinBank is currently at 64.45 per cent, the lowest possible level according to current regulations.

“Foreign ownership is currently approximately the maximum of 20 per cent. The market immediately absorbed after IFC withdrawal,” he added.

The general meeting of shareholders 2021 also submitted a plan to dismiss the position of member of the director board for the term of 2019-24 for Shiro Honjo at the request of MUFG Bank - a major shareholder of VietinBank. At the same time, Masashige Nakazono, CEO, Division of Strategic Planning, Planning Division at MUFG Bank was elected.

Its stock, CTG, was traded at VNĐ42,000 per share on Friday, increasing VNĐ8,000 per share over December 31, 2020. — VNS

 

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