Vietnam Prosperity Joint Stock Commercial Bank (VPBank) VPBank plans to pay a cash dividend at a ratio of 10 per cent this year, with the expected amount of cash amounting to VND7.93 trillion (US$337.7 million).
The expected implementation time is in the second and third quarters of 2023.
The source of capital is the bank's undistributed profits as of December 31, 2022.
VPBank set an ambitious business plan in 2023 with a profit of VND24 trillion (US$1 billion) in 2023, up 13 per cent compared to 2022.
Total assets are expected to reach VND877 trillion, up 39 per cent, of which outstanding loans increased by 33 per cent to reach VND636 trillion. The balance of customer deposits and valuable papers is estimated to increase by 41 per cent, reaching VND518 trillion.
According to Viet Dragon Securities Co (VDSC), this plan is a challenge in the current economic context when credit demand is low, and costs may increase.
Sharing at the General Meeting of Shareholders held on Tuesday in Ha Noi, Nguyen Duc Vinh, General Director of VPBank said that the bank was capable of implementing this plan. By the end of 2023, VPBank's equity is expected to reach over VND150 trillion.
In 2023, bank leaders said that difficulties with consumer finance company FE Credit remained, and the Board of Directors approved the restructuring plan of FE Credit. The Board of Management assessed that the consumer finance segment, despite difficulties due to COVID-19 and the economic crisis, is still a very potential market.
At the end of 2022, VPBank's consolidated equity capital reached more than VND103 trillion, an increase of 20 per cent compared to 2021 and presented a compound growth rate of 28.4 per cent in five years.
The bank issued shares at the rate of 50 per cent to pay dividends to shareholders, increasing its charter capital to VND67 trillion, becoming the bank with the highest charter capital in Viet Nam’s banking system.
The bank also plans to sell 1.19 billion shares to foreign strategic investor Sumitomo Mitsui Banking Corporation, equivalent to 15 per cent of VPBank's charter capital after the issuance. The offering price is VND30,159 per share. The amount collected will be VND35.9 trillion.
The expected offering time is in the second and third quarters of 2023. The agreed rate of foreign ownership is raised to a maximum of 30 per cent. After the deal, VPBank's charter capital will increase from VND67.43 trillion to VND79.34 trillion.
The sale of shares to Sumitomo Mitsui Banking Corporation is one of VPBank's growth drivers in 2023. According to VPBank's expectations, the deal will be implemented in the second or third quarter of 2023. — VNS