Vietcombank to curb bad debt below 2.5%

Wednesday, Apr 06, 2016 16:12

Vietcombank aims to reach a pre-tax profit of US$333 million this year. — Photo

HA NOI (Biz Hub)— The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) aims to keep non-performing loans under 2.5 per cent.

It also aims to add 10 per cent in pre-tax profits to reach VND7.5 trillion (US$333 million) this year.

According to a report released this week, the Ha Noi-based bank's deposits are set to rise 15 per cent to reach VND578.458 trillion in 2016, while outstanding loans will rise 17 per cent to touch VND452.967 trillion.

It also expected to pay a maximum dividend of 10 per cent this year.

The bank also wants to increase its total assets by 13.5 per cent to reach VND765.438 trillion this year, and also raise its charter capital from VND26 trillion to VNĐ35 trillion through share issue to become more competitive. A member of the bank's management board Le Thi Hoa earlier said Vietcombank would make 10 per cent of its primary shares available to foreign investors to increase its charter capital.

She said the bank also planned to issue bonus shares at a ratio of 35 per cent.

Japan's Mizuho Bank, which owns 15 per cent of Vietcombank, would maintain at least their current ownership ratio, and may increase it to 20 per cent, Hoa said.

Foreigners are allowed to hold a maximum of 30 per cent of Vietcombank's shares. Currently, the ratio stands at 21 per cent.

The bank, with total assets worth VND673.910 trillion as of the end of last year, earned VND1.3 trillion in revenue in the first two months of this year, after having to spend roughly VND900 billion on provision costs. — VNS

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