VPBank to sell 17 million treasury shares to employees

26-May-2020 Intellasia | VNS | 6:02 AM Print This Post

The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) will sell 17 million treasury shares for current employees in 2020, worth a total VND170 billion (US$7.31 million).

The issuance, which accounts for 0.67 per cent of its total shares, would be submitted to its annual shareholder meeting, scheduled to be organised on May 29, for approval.

The shares, with a price of VND10,000 each, will be restricted from trading for three years, the bank said in a document sent to shareholders.

However, the management board could decide to loosen the restricted time for transfer depending on human resource policies. Thirty per cent of the shares will be restricted from trading for one year. Thirty-five per cent of the shares will be available for trading after two years and shareholders will be able to trade the remainder after three years.

The issuance was expected to be implemented in the third quarter of this year.

VPBank targeted to increase its total assets by 12.7 per cent to VND425.1 trillion in 2020, customer deposits and valuable papers planned to reach VND299.7 trillion, an increase of more than 10 per cent and an outstanding loan of VND304.7 trillion, an increase of 12 per cent. The bank also targeted before-tax profit of VND10.2 trillion, down 1.1 per cent compared to 2019 while non-performing loans (NPL) ratio would be under 3 per cent.

The bank’s leaders said they have seen positive business results in terms of credit growth, revenue and consolidated profit despite the affects of COVID-19.

VPBank expected that the banking sector would regain its growth by the end of second quarter this year while the pandemic is under control, pushing recovery of production and business activities.

The bank planned to not pay dividends for 2019 to retain the capital for its business activities.

At the upcoming shareholder meeting, VPBank would vote for its management board and Supervisory Board in 2020-25 period. The current members such as Ngo Chi Dung, Bui Hai Quan, Lo Bang Giang and Nguyen Duc Vinh would be still in the voting list. Nguyen Van Phuc, a member of the Independent Board of directors would be a new candidate this term.

Tiki commits to support VPBank’s business households

E-commerce platform Tiki has become the fourth partner of VPBank to join the bank’s “Household Business Academy” programme, which enables business owners to conduct transactions via online channels in light of the social distancing order, as well as to maintain their revenue sources.

Accordingly, Tiki would have consultants to support the first 200 household businesses participating into the programme and open an online shop at https://tinyurl.com/vpbank-tiki. The households would be given training on online trading on the e-commerce platform.

In addition, they would also be offered preferential policies such as free designs of image and banners for ads, Tiki Ads and a livestream Tiki live advertising package.

A Tiki representative said this e-commerce floor has seen strong growth in the first months of this year. It was estimated that there were 3,000-4,000 orders a minute at peak times on this platform.

VPBank said the participation of Tiki in its programme has affirmed that digital transformation has been a vital trend for household businesses in the current context. The launch of its “Household Business Academy” programme has been in time to support the businesses overcome difficulties caused by COVID-19.

“We expect that household businesses could take advantage of the support from e-commerce floors to have good results for their online trading,” he added.

The pandemic has caused changes in consumers’ shopping habits, opening new opportunities for online trading. Statistics from the Ministry of Industry and Trade showed that revenue of traditional markets in Hanoi was reduced by 50-80 per cent in the first four months of the year. Meanwhile, that from online shopping through e-commerce increased by 20-30 per cent.

After a month of launching, the bank’s programme attracted participation of more than 12,500 household businesses nationwide. Hundreds of household businesses have successfully applied online sale skills.

Earlier, three partners including Shopee, Sendo and Be also joined the programme.

http://bizhub.vn/banking/vpbank-to-sell-17 million-treasury-shares-to-employees_315785.html

 


Category: Finance, Vietnam

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