Vietnam International Commercial Joint Stock Bank (HoSE: VIB) recently announced a series of documents for the 2024 Annual General Meeting of Shareholders (AGM).
According to VIB, in 2023, the bank will continue phase 2 (2022-2026) of its 10-year strategic transformation journey (2017-2026). Despite many difficulties and challenges, VIB's business results are basically stable with total assets of VND409,881 billion, up 19.6% over the previous year, reaching 102% of the plan.
Total outstanding credit reached VND267,129 billion and capital mobilization reached VND260,474 billion, achieving 100% of the set plan. Only pre-tax profit was almost the same as last year, achieving only 88% of the set target.
In 2024, VIB's Board of Directors proposed that the General Meeting of Shareholders approve the business plan with pre-tax profit reaching VND 12,045 billion, an increase of 13% compared to the actual level in 2023.
In addition, other basic indicators such as total assets are planned by VIB to reach 492,000 billion VND, an increase of 20% compared to the actual level in 2023. Outstanding credit balance increases by 20%, reaching 320,600 billion VND. Capital mobilization is expected to increase by 21% to 315,200 billion VND while the bad debt ratio is expected to be below 3%, in 2023 this ratio is 2.20%.
At the same time, VIB's Board of Directors also proposed that the General Meeting of Shareholders approve the plan to set up funds and distribute profits in 2023. Specifically, VIB will pay dividends at a rate of 29.5% on charter capital. Of which, the maximum cash dividend is 12.5%, stock dividend is 17% and bonus shares are issued at a rate of 0.44% for employees.
Regarding the cash dividend payment, VIB plans to divide it into 2 installments, the first installment is a 6% interim dividend and the second installment is a cash dividend payment at a rate of 6.5%. The total maximum amount expected to be used for dividend payment is VND3,171 billion.
According to VIB, the first cash dividend advance was approved by the bank's General Meeting of Shareholders at the end of 2023 and paid on February 21, 2024. In addition to cash dividends, VIB's Board of Directors also proposed a plan to increase charter capital through the issuance of bonus shares to existing shareholders and employees.
Of which, the bank will issue a maximum of 431.3 million bonus shares to existing shareholders, equivalent to a ratio of 17%, increasing charter capital by VND4,312.6 billion. In addition, VIB will also issue 11.1 million bonus shares to employees, equivalent to a ratio of 0.44%, increasing charter capital by VND110.6 billion.
VIB's charter capital was previously VND25,368 billion. After the successful issuance of shares, VIB's charter capital is expected to increase to VND29,791 billion, equivalent to a capital increase rate of 17.44%.
VIB also noted that bonus shares for existing shareholders are not subject to transfer restrictions, while shares for employees are subject to transfer restrictions within 1 year from the end date of the issuance.
VIB said that the increase in charter capital is necessary to improve financial capacity, create a foundation for developing technology systems, products and services, human resources, expanding branch network, market share and scale of operations; supplement medium and long-term capital for credit activities and investment in liquid assets.
VIB's General Meeting of Shareholders is expected to be held on April 2, 2024 at the Grand Ballroom, InterContinental Saigon Hotel, corner of Hai Ba Trung and Le Duan streets, Ben Nghe ward, District 1, Ho Chi Minh City .
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