According to the documents of the 2023 Annual General Meeting of Shareholders recently announced by Vietnam Prosperity Joint Stock Commercial Bank (VPBank, HoSE: VPB), the bank aims to increase pre-tax profit by 13% to VND24,003 billion.
VPBank said that the 2023 target was set based on assumptions/analysis of growth scenarios of the economy in general and the actual capacity of the Bank.
In addition, the bank expects total assets to increase by 39% to VND877 trillion. Customer deposits and valuable papers will increase by 41% to VND518 trillion. Outstanding credit will increase by 33% to VND636 trillion.
Actual credit growth will be based on the maximum limits/regulations of the State Bank. The bad debt ratio is controlled below 3%.
Dividend rate 10%
Notably, VPBank plans to pay a cash dividend of 10% this year, equivalent to VND1,000/share, meaning that shareholders owning 1 share will receive VND1,000.
This ratio is calculated on the total number of new outstanding shares after the issuance of shares under the ESOP program and the private offering of shares to foreign strategic investors. Accordingly, the total amount expected to be paid as cash dividends is VND 7,934 billion.
The implementation time is around the second quarter - third quarter of 2023. The specific time will be decided by the Board of Directors, ensuring compliance with legal regulations and the actual conditions of the bank.
In addition, VPBank also presented to shareholders a plan to use treasury shares held by the bank to sell to employees under the 2023 employee stock option issuance program (ESOP).
It is expected that VPBank will issue 30.22 million ESOP shares, at a price of VND10,000/share, equivalent to an issuance ratio of 0.45% of the total number of outstanding shares.
VPBank will collect VND302.2 billion from this issuance, which will be used to supplement the bank's working capital. These shares will be frozen for a maximum of 3 years, but the Board of Directors will still be allowed to decide whether to relax the transfer restriction period depending on the personnel policy in each period.
Maintain the "champion" position in charter capital
Notably, VPBank's Board of Directors also presented to shareholders a plan for a private offering to foreign strategic investors to increase charter capital and raise the total foreign ownership ratio at VPBank to a maximum of 30% of charter capital.
Specifically, the bank plans to offer 1.19 billion shares, equivalent to 15% of capital, to Japanese strategic investor Sumitomo Mitsui Banking Corporation (calculated on VPBank's charter capital after completing the issuance to foreign strategic investors).
The expected offering price is VND30,159/share. Thus, it is estimated that VPBank can earn more than VND35,900 billion after this deal. The expected offering time is in the second and third quarters of 2023, after receiving approval from the State Bank and the State Securities Commission.
It is expected that after this offering to strategic investors , VPBank's charter capital will increase from VND67,434 billion to VND79,339 billion. Subsequently, equity will increase from VND103,500 billion to about VND140,000 billion.
Since then, VPBank has become the bank with the second largest equity in Vietnam and maintained its position as the "champion" of charter capital in the banking industry.
With the additional capital from the offering, VPBank plans to allocate VND5,000 billion to increase medium and long-term capital to serve customers' credit needs; VND6,000 billion will be used to invest in capital contribution to buy shares in securities companies, insurance companies and other capital contribution investment plans. The remaining VND905 billion will be invested in infrastructure, facilities, development of large information technology systems ...
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