The Annual General Meeting of Shareholders of Vietnam Technological and Commercial Bank ( Techcombank ), held on the morning of April 20, 2024, approved the profit distribution plan for 2023, with a cash dividend payout of up to 15% of par value (shareholders owning one share will receive VND 1,500).
With the above dividend payout ratio, Techcombank will spend nearly 5,300 billion VND on profit distribution to shareholders. Paying a cash dividend of 15% makes Techcombank one of the few banks currently in the market that is so generous to its shareholders.
This is the first year in 10 years that Techcombank has paid dividends in cash. According to Mr. Ho Hung Anh, Chairman of the Board of Directors of Techcombank, with equity capital ranking among the top in Vietnam today, this allows Techcombank to pay dividends in cash while still ensuring safety indicators.
"I hope that this year's cash dividend distribution will pave the way for subsequent years so that we can achieve our growth targets," said Mr. Ho Hung Anh.
The source for dividend distribution is the Bank's undistributed profits after the allocation of funds as of December 31, 2023, according to the audited separate and consolidated financial statements for 2023.
At the General Meeting, shareholders also approved a plan to increase the charter capital from over VND 35.225 billion to over VND 70.450 billion through the issuance of shares from equity capital. The issuance ratio is 1:1, meaning shareholders owning 100 entitled shares will receive an additional 100 new shares.
The recipients of the shares are all existing shareholders whose names are on the shareholder list as of the record date, to exercise their right to receive shares from the increase in charter capital through the issuance of shares from equity capital.
The capital increase through share issuance is expected to be completed in 2024 or until Techcombank completes all legal procedures. After the issuance, Techcombank, along with VPBank, will become a real "powerhouse" in the banking industry in terms of charter capital.
Techcombank was among the leading banks in terms of profit in 2023 with 22,888 billion VND in pre-tax profit. Total assets as of December 31, 2023 reached 849,500 billion VND.
In particular, Techcombank's strategy of aggressively attracting new customers and establishing principal banking relationships has helped the bank consistently lead in CASA balances, reaching 40% as of December 31, 2023. Its leading digital capabilities and partner ecosystem enabled Techcombank to attract 2.6 million new customers in 2023, contributing approximately VND 6.7 trillion to CASA growth.
The General Meeting of Shareholders approved the 2024 business plan with key targets such as: Credit outstanding of VND 616,031 billion, an increase of 16.2% (as approved by the State Bank of Vietnam); total customer deposits in line with actual credit growth, aiming to optimize the balance sheet (reaching VND 507,157 billion in 2023, an increase of 34.3%); pre-tax profit of VND 27,100 billion (an increase of 18.4%); and a non-performing loan ratio of less than 1.5%.
To achieve the above plan, Techcombank will focus on accelerating growth in three priority areas: increasing current account deposits (CASA); diversifying its credit portfolio; and strengthening principal account relationships (MOA) with individual and institutional customers.
The General Meeting of Shareholders also approved the 2024 remuneration budget for the Board of Directors and the Supervisory Board with a fixed remuneration of VND 38.6 billion (VND 34.9 billion in 2023), and operating expenses and other costs of VND 9.3 billion (VND 8 billion in 2023).
Techcombank shareholders also elected the Board of Directors and Supervisory Board for the 2024-2029 term, with 9 members on the Board of Directors (an increase of 1 member compared to the previous term) and 3 members on the Supervisory Board.
The new Board of Directors consists of: Mr. Ho Hung Anh (Chairman of the Board), Mr. Nguyen Dang Quang (First Vice Chairman), Mr. Nguyen Thieu Quang, Mr. Nguyen Canh Son, Mr. Ho Anh Ngoc, Ms. Nguyen Thu Lan, Mr. Saurabh Narayan Agarwal, Mr. Pham Nghiem Xuan Bac (independent member), and Mr. Eugene Galbraith (independent member).
Among them, Ms. Nguyen Thu Lan, Mr. Pham Nghiem Xuan Bac, and Mr. Eugene Galbraith are new members.
The list of members of the Supervisory Board for the 2024-2029 term includes: Mr. Hoang Huy Trung, Ms. Bui Thi Hong Mai, and Ms. Do Thi Hoang Lien.
Ms. Nguyen Thu Lan, born in 1969, has been associated with Techcombank for over 22 years. She currently holds the position of Acting Director of Risk Management. Mr. Pham Nghiem Xuan Bac, born in 1961, has held leadership positions in domestic and international organizations in fields such as capital markets, real estate, and intellectual property. Mr. Bac is currently the General Director of Tam Nhin Lien Danh Limited Company, and Chairman of the Board of Directors of the following companies: Tam Nhin and Lien Danh Law Limited Company, Cong Huong Joint Stock Company, and Phi Thuyen Dau Tu Joint Stock Company. Mr. Bac is currently the Head of the Supervisory Board of Ho Chi Minh City Securities Corporation (HSC). Mr. Eugene Galbraith, born in 1952 (American citizen), is currently a lawyer belonging to the Hanoi Bar Association. He has many years of experience as an economic planning consultant for the Indonesian Ministry of Finance . He is currently a member of the independent board of directors of KB Bukopin Bank (currently in the process of ending his term). |
Tuan Nguyen
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