Vietnam International Commercial Joint Stock Bank (VIB) today announces its release of documents for the Annual General Shareholders Meeting (AGM) due on March 29, 2018 in Ha Noi.
Positive business results in 2017 According to the documents, the year 2017 is a turning-point with strong transformation activities that took place on a systematic scale and that have started to show positive results. From the growth perspective, 2017 witnessed the strongest and highest growth year of VIB in the last 5 years, with all business units exceeding their sales and profit plan. Profit before tax (PBT) reached VND1,405 billion, doubling that of previous year and reaching 187% of the plan approved in the last the Annual General Shareholders Meeting. Total assets reached VND123.2 trillion, achieving 103% of the plan approved in the last AGM; credit growth reached 26%; bad debts maintained below 3%.
Relating to non-financial performances, VIB continued to be recognized by international institutions and state management agencies as one of the best banks in terms of quality and transparency. The bank was the first bank in Vietnam to win “The leading Vietnam Bank for Trade Finance for SMEs” granted by Asian Development Bank. VIB received “Vietnam’s Outstanding Innovative Banking Service Award in 2017” from IDG for MyVIB Social Keyboard, the award “The most innovative banking brand in Vietnam 2017” from The Global Brands Magazine, UK and “Best Customer Service Bank Vietnam 2017” award from Global Banking & Finance Review (GBAF).
Moody’s Investors Service upgraded VIB rating in terms of VIB’s local currency deposits and foreign currency deposits from stable to positive, and continued to affirm VIB to be in the group of highest credit rating banks in Vietnam.
The Bank proposes dividend payment by cash and bonus shares of 5 per cent and 31 per cent, respectively, for shareholders and ESOP shares for its staffs by using treasury shares.
Business plan 2018
In 2018, VIB sets the PBT target of VND2,005 billion, up 43% year-on-year. The bank is expected to propose plan for increasing the chartered capital to maximum VND 8,100 billion. The methods of raising capital are comprised of offering and issuing new shares to investors in form of private placement up to 10% of charter capital, issuing bonus shares using share premium reserves, Investment & Development reserves, Capital reserves and Retained earnings. The additional capital is aimed to provide credit to corporate and individual customers with stable financial status, potential development, priority customers in the priority areas of the Government. It’s also expected for investments in facilities, technology, products, risk management capacity as well as upgrading the branch network in order to enhance the competitiveness of VIB and expand the presence of the bank in provinces and cities across the country.
With the capital planning, VIB is expected to achieve some of the bank’s major business targets in 2018, including a 43 percent increase of earnings to VND2,005 billion. Also, the Bank’s total assets are aimed to reach VND150.231 trillion, up 22 per cent; deposits are expected to amount to VND100 trillion, growing by 22 per cent; bad debts maintains below 3%. The Board of Directors proposes that the AGM 2018 authorizes it to choose suitable time for listing VIB shares on Ho Chi Minh City Stock Exchange (HOSE or HSX) in coming time.
The AGM will be held at Hanoi Daewoo Hotel on March 29, 2018.
By Thu Nguyet, Source: VIB