VPBank proposes not to pay dividends but sell 31m treasury shares at par value to employees

19-Apr-2019 Intellasia | Vietnam Finance | 6:38 AM Print This Post

According to the document published by Vietnam Prosperity Joint Stock Commercial Bank (VPBank) for the Annual general Meeting of Shareholders in 2019, it set a target of total assets of 373.649 trillion dong, up 16 percent compared to the end of last year..

It plans to increase mobilising and valuable papers by 15 percent to 252.435 trillion dong, outstanding loans by 15 percent to 265.408 trillion dong, bad debt ratio of each branch less than three percent.

In 2019, VPBank set a pre-tax profit target of 9.5 trillion dong, up three percent compared to 2018. If excluding the extraordinary income from insurance premium in 2018, the increase is 14 percent.

In addition to the business plan, at the next congress, VPBank will propose to its shareholders to retain the undistributed profits and not to distribute funds such as development investment fund and reserve fund to supplement charter capital in order to keep the capital for its business activities.

VPBank’s Board of directors will also submit a plan to sell treasury shares to employees with a selling volume of 31 million shares at par value of 10,000 dong per share (about half of the current market price). Tentative implementation time is in the second quarter of 2019.

These shares will be restricted from transfering, specifically: 30 percent of the shares will be unrestricted after one year, 35 percent after two years, and the remaining 35 percent after three years.

Notably, VPBank will also submit to shareholders a plan to increase chartered capital through private issuance to domestic and foreign investors in order to supplement new equity to serve the operation and development needs of the bank.

The expected maximum volume of placement shares is about 260 million shares, aligning to the goal of increasing the foreign ownership ratio on charter capital to a maximum of 30 percent.

The implementation period is in 2019 or 2020, depending on the level of market advantage and procedures. Additional capital will be used to invest in fixed assets, supplementing medium and long-term capital sources for VPBank’s activities.

Regarding business activities, VPBank will submit to shareholders the plan of adding activities in its business licenses, including: provision of commodity price derivative products; deposit products associated with investment; entrustment activities in providing payment services; trading and supplying derivative products on exchange rates, foreign exchange, currencies, and other financial assets in the domestic and international markets; bond issuance agent.

As for debt recovery, in 2019, the bank said that debt collection will continue to be systematised through the completion and implementation of new technology projects such as: GPS tracking to improve supervision and maximise productivity of field debt collection, new debt reminder channel via Zalo, IVM automatic debt reminder to improve productivity.


Category: Finance, Vietnam

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