VIB plans dividend and bonus share at 44.6 per cent, to issue bonus shares for its employees

16:17 | 12/04/2017
On April 12, Vietnam International Bank (VIB) published materials for its general shareholders meeting (GSM), which is scheduled to take place on April  27  in Hanoi.

In 2016, VIB recorded significant achievements thanks to its efficient, safe and sustainable development, and focus on sustainable source of revenue, cost optimisation, and efficient risk management.

In particular, VIB achieved VND702 billion ($31 million) of profit before tax, equivalent to 104 per cent of the target set by GSM. Total assets amounted to VND104.5 trillion ($4.6 billion), equivalent to 116 per cent of the target set by GSM. Credit growth reached approximately VND70 trillion ($3.1 billion), up 25 per cent for two consecutive years.

Also in the year, VIB re-purchased 30 per cent of the debts sold to VAMC while controlling its NPL under 3 per cent. Thanks to good deposit growth, the bank’s loan-to-deposit and short-term deposit to medium- and long-term loan ratio reached 65.6 per cent and 47.1 per cent respectively, which both well comply with the ratios required by SBV. The bank’s capital adequacy ratio (CAR) was 13.5 per cent.

Besides, in 2016 VIB continued to be well recognised by international institutions and government authorities. VIB was rated by Moody’s to be in the group of banks with the highest financial strength for three consecutive years (2014, 2015, 2016); VIB won “Bank of the Year Vietnam” award for two consecutive years (2015, 2016) given by The Banker, UK.

Also in 2016, VIB successfully organised its annual GSM and elected the board of directors (eight members) and supervisory board (three members) for Term VII (2016-2019). The bank’s board of directors had six meetings and issued 84 resolutions in different areas of operation.

Distribute dividend and bonus share, increase charter capital, and plan for 2017

Adhering to VIB’s policy of paying dividend and bonus share at a high rate in 2014 and 2015 (23 per cent and 25 per cent respectively), in 2016 the bank’s board of directors proposed to its annual GSM a plan of distributing dividend and bonus share at a maximum rate of 44.6 per cent of the charter capital, including 5 per cent in cash (estimated depending on SBV’s approval) and 39.6 per cent by bonus share (including 3.5 per cent accumulated profit, 20.5 per cent capital surplus and 15.6 per cent reserve fund for charter capital supplement).

In another plan, which is also proposed to the GSM , VIB will not distribute dividend in cash but apply a 44.6 per cent rate by bonus share only (including 8.5 per cent accumulated profit, 20.5 per cent capital surplus and 15.6 per cent reserve fund for charter capital supplement).

In addition, the board of directors will also submit to the GSM a plan of paying bonus share to the bank’s employees at a 0.4 per cent rate of the charter capital, equivalent to VND23 billion ($1.01 million).

The plans of increasing charter capital mentioned above aim to strengthen VIB and its charter capital size so that the bank can get ready to meet liquidity and capital adequacy ratios in its business and operation.

According to VIB, 2017 will be a promising year when the bank focuses on its targets of sustainable growth and size expansion. Apart from the plans of distributing dividend and increasing charter capital, VIB also pays due attention to its business plan for 2017, including a credit growth plan with 2 options: i) 16 per cent credit growth approved by SBV before; ii) 32 per cent credit growth estimated by the Board of Management based on its risk management capability and the economy’s priority direction, depending on approval of SBV; Profit before tax estimated at VND750 billion ($33.1 billion); Deposit on market 1: over VND80 trillion ($3.53 billion); Total assets: VND120 trillion ($5.3 billion); Minimal decrease in credit balance with VAMC and NPLs controlled below 3 per cent.

Besides, the Board of Directors propose a plan to mobilise funds (maximum VND7 trillion ($310 million) on the secondary market for up to 10 years in order to strengthen its CAR and other financial indicators to serve the bank’s business.

The bank’s annual GSM is scheduled to take place at Sheraton Hotel, Hanoi on April 27 , 2017.

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VIB wins Bank of the Year 2016 Award for two consecutive years
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VIB lending up by 12 per cent while NPLs decreased in first nine months of 2016

By By Hong Anh

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