Prosperity and Development Joint Stock Commercial Bank (PGBank - UPCoM: PGB) has just announced documents for the 2024 Annual General Meeting of Shareholders.
Accordingly, in 2023, PGBank's total assets will reach VND55,491 billion, reaching 104.6% of the plan. Total capital mobilization will reach VND49,798 billion, reaching 105.5% of the plan. Outstanding credit as of December 31, 2023 will reach 99.9% of the plan. However, PGBank's pre-tax profit in 2023 will reach VND351 billion, only achieving 66.2% of the plan.
PGBank said that the reason for the pre-tax profit not reaching the plan was due to the average credit balance not reaching the plan, the business market had many difficulties, finding customers with good credit quality in the highly competitive market between banks, lending interest rates decreased according to the direction of the State Bank but mobilization interest rates had not decreased accordingly;
Non-interest income decreased due to service fees and insurance revenue decreased due to general market difficulties. In addition, PGBank changed its shareholder structure and operating orientation, so it needs time to review and rearrange operations to suit the new strategy.
In 2024, PGBank sets a business plan with total assets of VND 63,503 billion, an increase of 14.4% compared to 2023; total net revenue of VND 2,086 billion, an increase of 49.7% compared to 2023. The bank sets a pre-tax profit target of VND 554 billion, an increase of 57.7% compared to the previous year's performance.
Regarding the 2023 profit distribution plan, PGBank recorded a profit after tax of VND 279.9 billion. After setting aside funds, the bank's undistributed profit in 2023 was VND 200.4 billion. PGBank plans not to pay dividends in 2024.
In 2024, PGBank also plans to increase its charter capital by a maximum of VND800 billion, from VND4,200 billion to VND5,000 billion through a public offering of shares to existing shareholders.
Specifically, the bank will issue a maximum of 80 million common shares at an offering price of VND10,000/share. The offering ratio is 4:21 (number of shares expected to be offered/number of shares outstanding on the record date for exercising rights).
The exercise ratio is 21:4 (shareholders owning 21 purchase rights will be able to purchase 4 new shares). The expected offering time is in 2024 and 2025. The specific issuance time is decided by the Board of Directors in accordance with the approval of the State Bank and the State Securities Commission.
The purpose of issuance is to supplement capital to purchase fixed assets, labor tools; build facilities, interior equipment of transaction points... Invest in upgrading software, information technology infrastructure; improve financial capacity, expand scale, increase medium and long-term capital for medium and long-term loans to meet the long-term loan needs of customers expanding business activities.
In the latest development, PGBank has just announced unusual information about receiving a resignation request from Mr. Nguyen Thanh To, Deputy General Director in charge of the Balance and Capital Business Division. The resignation request date is from May 21, 2024.
At the same time, the bank also received a resignation letter from Mr. Nguyen Thanh Lam, an independent member of the Board of Directors of PGBank from April 16, 2024. Both individuals resigned for personal reasons.
PGBank's General Meeting of Shareholders is scheduled to take place at 8:00 a.m. on April 20 at the Clubhouse Hall, The Five Villas & Resort Ninh Binh, Yen Thang Commune, Yen Mo District, Ninh Binh .
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