The Viet Nam Thuong Tin Commercial Joint Stock Bank (Vietbank) targets pre-tax profits of VND300 billion (US$13.1 million) this year and plans to increase its charter capital by over VND1 trillion ($43.8 million).

According to a report tabled at its annual general meeting in HCM City on Saturday, in the fiscal year 2017, the lender achieved gross profits of VND263 billion, VND193 billion more than the previous year.

Its after-tax profits of VND262.5 billion helped offset the accumulated losses from previous years.

Besides, VietBank will add VND1 trillion to its capital by issuing shares to the public and staff, and the proceeds will be used for capital expenditure and network expansion.

The capital will first be increased by VND500 billion prior to listing on UPCOM. By 2020, the bank will list on the Ho Chi Minh Stock Exchange.

Vietbank successfully implemented the first phase of its restructuring plan in 2011-15, meeting all the requirements of the State Bank of Viet Nam, becoming a public company, eradicating cross-ownership, and reducing bad debts to 1.2 per cent (lower than the required level).

It has also improved its risk management to meet the provisions of the central bank’s Circular 41 based on Basel II norms for capital adequacy for banks. — VNS