VIB to use profits to add to core capital

Update: November, 29/2017 - 15:47
VIB’s after-tax profit until the end of September was VNĐ799 billion. - Photo VIB
Viet Nam News

HÀ NỘI — Vietnam International Bank (VIB) will submit to the general shareholders meeting (GSM) a plan to use part of its after-tax profits to add to the bank’s core capital.

Accordingly, VIB will temporarily use the after-tax profit accumulated until November 11, 2017, to add to the bank’s Tier 1 capital. The amount will not exceed VNĐ700 billion (US$30.83 million) and the bank’s after-tax profit up till November 30.

The board of directors authorises the board’s chairman to decide the detailed amount to submit to the GSM. Implementation will be done before December 31 this year.

Previously, in early October, VIB unexpectedly decided to cancel a plan to increase charter capital to VNĐ5.64 trillion from VNĐ4.84 trillion by issuing bonus shares approved at the GSM in April 2017. It instead used the money to buy 10.1 per cent of treasury shares.

According to the bank’s Q3 accumulated financial report, its after-tax profit until the end of September was VNĐ799 billion.

VIB’s outstanding loans stood at VNĐ53.37 trillion in the first nine months of the year, 11.7 per cent higher against December 31; while deposits grew 12.1 per cent since December 31 to VNĐ59.77 trillion.

The bank’s non-performing loan ratio fell to 1.54 per cent compared with 1.84 per cent at the end of the second quarter and 2.07 per cent at the end of 2015, and its capital adequacy ratio stood at 15.6 per cent, significantly higher than the 9 per cent required by the State Bank of Việt Nam.

VIB’s credit ranking was upgraded to B2 in a Moody’s report ranking of Vietnamese banks released last month, putting it in the group of banks with the highest credit ranking in the market. — VNS