Bac A Commercial Joint Stock Bank (Bac A Bank - HNX: BAB) has just announced its consolidated financial report for the first quarter of 2024 with a bright spot being the main source of revenue, net interest income, reaching VND 812.7 billion, up 41% over the previous year.
However, the bank's non-interest business activities showed a significant decline as net profit from service activities decreased by 25.8% year-on-year to nearly VND23 billion. Investment securities trading activities recorded a profit of VND11.5 billion, down nearly 63% compared to the first quarter of 2023.
Notably, Bac A Bank's foreign exchange trading activities caused the bank to lose 11.7 billion VND, while in the same period last year, this activity brought the bank a profit of nearly 31 billion VND.
Net interest income from other banking activities also decreased by 21% compared to the previous period to VND 3 billion. Thanks to the support of net interest income, Bac A Bank's total operating income still increased by 23.4% compared to the same period in 2023 to nearly VND 839 billion.
During the period, Bac A Bank's operating expenses increased by 41% to VND499.3 billion. The bank's provision expenses were less than VND1 billion due to the reversal of more than VND52 billion in provisions.
As a result, Bac A Bank reported pre-tax profit of VND 338.6 billion, up slightly by 1%, and after-tax profit of VND 270.9 billion, up 0.7% compared to the first quarter of 2023.
As of March 31, 2024, Bac A Bank's total assets were recorded at nearly VND 149,353 billion, down 1.9% compared to the end of 2023. Of which, customer loans reached VND 100,543 billion, up 0.7% compared to the beginning of the year.
On the other hand, the bank's deposits and loans to other credit institutions were VND13,131 billion, down 14.5% year-on-year. Customer deposits at Bac A Bank as of this date were VND118,125 billion, down 0.3% year-on-year.
Regarding debt quality, Bac A Bank's total bad debt at the end of the first quarter of 2024 was VND 1,118 billion, an increase of 22.1% compared to 2023. As a result, the bad debt ratio increased from 0.92% at the end of 2023 to 1.11%.
In a related development, on April 27, the 2024 Annual General Meeting of Shareholders of Bac A Bank will be held at the Green Hotel Hall, 282 Binh Minh Street, Nghi Huong Ward, Cua Lo Town, Nghe An.
The bank's Board of Directors plans to submit to shareholders a 2024 business plan with a pre-tax profit target of VND1,100 billion, an increase of 5% compared to the level achieved in 2023.
The bank also plans to submit to the congress a plan to increase its charter capital by an additional VND1,668 billion through two forms. First, issuing common shares to pay dividends to existing shareholders with a total value of VND620 billion. The source of implementation is from accumulated undistributed profits until the end of 2023.
At the same time, it will offer a maximum of nearly 104.8 million common shares to existing shareholders with a total value of nearly VND 1,048 billion at par value, with an expected offering ratio of 10%. The expected offering price is VND 10,000/share and may be adjusted depending on the actual situation.
Regarding the profit distribution plan, the bank's expected profit to be used for dividend payment in 2023 is VND 620.9 billion, equivalent to the expected dividend rate of 6.93% on the bank's charter capital at the date of the proposal, which is VND 8,959 billion.
However, the bank will continue to implement the second charter capital increase plan in 2023, which was approved by the General Meeting of Shareholders and the State Bank of Vietnam, and plans to offer more than 89.5 million shares (par value of VND 10,000/share) to existing shareholders with a total par value of VND 895.9 billion.
Therefore, the dividend payout ratio in the future may change depending on the results of the stock offering under the above plan .
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