Eximbank delays AGM to June 30, adjusting business plan for 2020

28-May-2020 Intellasia | VNS | 6:50 AM Print This Post

The Vietnam Export Import Commercial Bank (Eximbank) plans to delay its Annual general Meeting of Shareholders (AGM) to June 30 due to the impacts of COVID-19, announced its leaders.

The initial meeting was scheduled to be held in April.

Difficulties and interruptions inflicted by COVID-19 also caused Eximbank’s Board of directors to adjust the business plan for 2020.

This year, Eximbank aims to drastically reduce operating costs by VND326 billion (US$14 million), down 11 per cent compared to the original plan.

It plans to raise VND147.8 trillion this year, down 8 per cent compared to the initial plan. Outstanding loans are estimated to reach VND122.3 trillion, down 4 per cent compared to the original plan.

With the above adjustments, the profits generated from core business activities are set to decrease by 10.3 per cent.

The settlement of collateral of customers with bad debts and the settlement debts at the Vietnam Asset Management Company (VAMC) have been postponed until next year, causing the total pre-tax profit in 2020 to sharply fall by 40 per cent to VND1.3 trillion compared to the original plan set for 2020 but still up 22 per cent compared to the results achieved in 2019.

Currently, the bank’s capital adequacy ratio (CAR) stands at 10.5 per cent, fulfiling the CAR requirement of 8 per cent as per Basel II norms starting in 2020.

The ratio of short-term funds used for medium- and long-term loans is 31 per cent, still under the maximum limit of 40 per cent.

The loan-to-deposit ratio (LDR) is kept at 81.2 per cent, under the maximum ratio of 85 per cent and other liquidity safety ratios are guaranteed within the permissible thresholds as prescribed by the State Bank.

http://bizhub.vn/markets/eximbank-delays-agm-to-june-30-adjusting-business-plan-for-2020_315846.html

 


Category: Finance, Vietnam

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