The plan that VietABank and BVBank have put forth for this year is to list their shares on the Ho Chi Minh City Stock Exchange (HoSE) to increase liquidity from the current UpCom floor.
VietABank (code: VAB) has just announced the documents for the 2024 Annual General Meeting of Shareholders (AGM). The meeting will be held on the morning of April 26 to present to shareholders the 2024 business plan, capital increase plan, listing on the stock exchange, election of members of the Board of Directors (BOD) and Supervisory Board and other issues.
Notably, at this year's General Meeting, VietABank's Board of Directors submitted a report to the General Meeting of Shareholders on listing all outstanding shares of the bank (after being approved by the regulatory agency) on the Stock Exchange when market conditions are favorable, in accordance with legal procedures. The choice of listing on the Ho Chi Minh City Stock Exchange (HOSE) or the Hanoi Stock Exchange (HNX) will be decided by the Board of Directors. The Board of Directors will be authorized to perform other tasks related to listing activities on the exchange.
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At this year's congress, VietABank's Board of Directors will also submit to the General Meeting of Shareholders a plan to increase charter capital by VND2,106 billion, equivalent to 39%, through the issuance of shares to pay dividends from undistributed profits and the reserve fund to supplement charter capital. After completing the dividend payment, VietABank's charter capital will increase to more than VND7,505 billion. The time of issuing shares will be decided after receiving approval from the State Bank of Vietnam (SBV) and the State Securities Commission.
In 2024, VietABank plans to have a pre-tax profit of VND1,058 billion, an increase of 15.4% compared to the results achieved in 2023. However, the above plan is lower than the plan for 2023 of VND1,275 billion. VietABank aims to increase total assets by 4.3% to nearly VND117,000 billion. Of which, outstanding credit will increase by 12.36% to VND77,741 billion. Customer deposits and issuance of valuable papers are expected to increase by 5.6% to VND92,027 billion. The bad debt ratio will be controlled below 3%. At the end of last year, VietABank's bad debt ratio was at 1.59%.
Similarly, at this year's congress, BVBank (code: BVB) will also submit to shareholders for approval the transfer of BVB shares from UPCoM to listing on the Ho Chi Minh Stock Exchange (HOSE). Previously, this plan was submitted and approved at the 2023 annual general meeting of shareholders, but the bank has not implemented it due to unfavorable market conditions.
In 2024, BVBank forecasts that the economic situation will continue to be difficult. However, the Board of Directors believes that the economy will soon have prospects to improve and BVBank's business situation will recover in 2024. Therefore, the bank will continue to submit a plan to list on the stock exchange.
In 2024, BVBank plans to make a profit of VND200 billion, 2.7 times higher than the previous year but less than half of the profit in 2022; total assets of VND100,000 billion; customer mobilization is estimated to increase by 10%, reaching VND74,086 billion. Outstanding credit balance is expected to increase by 14% by the end of 2024, reaching VND65,937 billion.
At the end of 2023, BVBank's pre-tax profit reached VND72 billion, down 84% compared to the previous year and achieving 55% of the plan. According to BVBank's explanation, net interest income decreased by 14% during the year due to difficulties in business operations of enterprises and individuals. Revenue from service activities decreased by 45% compared to the previous year, mainly due to the impact of a decrease in revenue from linked insurance. However, securities trading activities earned a profit of VND122 billion thanks to a nearly doubling in bond trading revenue.
Also at the 2024 Shareholders' Meeting, the Board of Directors will present a plan to increase charter capital in 2024. Specifically, the Bank will increase by nearly VND 890 billion, raising its charter capital to a maximum of VND 6,408 billion by issuing shares to the public and ESOP. Accordingly, BVBank will issue nearly 69 million shares to existing shareholders at a ratio of 8:1 (shareholders holding 01 share will receive 01 right and every 08 rights will be entitled to buy 01 additional issued share). The purchase right is not transferable. The additional issued shares are not subject to transfer restrictions.
At the same time, the Bank will issue 20 million ESOP shares. The additional shares will be restricted from transfer for one year. The expected implementation time of the above plans is in 2024 and the first and second quarters of 2025. The specific time is authorized for the Board of Directors to decide after approval by competent State management agencies.
In the stock market, there are currently 7 banks trading on the UPCoM market including: VietABank, ABBank, Kienlongbank, Vietbank, PGBank, SaigonBank and BVBank. In 2023, 5 banks, ABBank, VietBank, Nam A Bank and BVBank, have announced plans to list their shares on HoSE or HNX. However, only Nam A Bank has successfully listed its shares on HoSE, while VietBank, ABBank and BVBank have not completed their listing plans.
At the annual general meeting of shareholders on April 5, ABBank shareholders also raised questions about the plan to list shares. Responding to this issue, Mr. Dao Manh Khang, Chairman of ABBank, said that the bank's board of directors also wanted to list ABB shares on the HoSE to better mobilize market capital. Listing also helps to manage information more transparently. Major shareholders of ABBank such as IFC and Maybank also set out requirements for transparent management.
However, at the recent 2024 General Meeting of Shareholders, ABBank Chairman Dao Manh Khang said that the bank has not yet listed on the stock exchange due to unfavorable conditions. "In the 5-year roadmap that we have presented, we set a target of capitalization of 3 billion USD, not only for ABBank's organic growth, but also for a boost such as M&A or having new shareholders, or listing. McKinsey will support ABBank to jointly implement this roadmap," said the Chairman of ABBank.
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