Business

VIB to announce dividend payment plans at its upcoming AGM

After six years of implementing strong and extensive strategic transformation, Vietnam International Bank (VIB) has marked important milestones in its journey to becoming the leading retail bank in Vietnam.

Published

9 months ago

March 15, 2023

TienphongNews

vib-plans-to-approve-dividend-payment-and-capital-increase-plan-at-the-upcoming-agm-20230313165016_141046948-1

Average profit growth of 57 per cent/year

VIB’s annual profit growth, 2016-2022. Photo from VIR.

The intense focus on retail banking has helped VIB create a scale advantage. The business models of auto loans, home loans and credit cards showed their effectiveness, allowing the bank to gain a leading market share in many retail segments.

A customer-centric strategy has helped VIB attract and serve over four million customers and increase customer engagement.

The positive business results from 2022 contributed to the overall efficiency in the six years of transformation (2017-2022), making VIB one of the leading banks in asset size growth, revenue growth, effective cost management and tight risk control. VIB’s profit has grown at a compound annual growth rate of 57 per cent per year over the past six years.

A leader in scale growth

VIB’s growth rate compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

With Vietnam’s economy among the most dynamic in the world, the substantial increase in demand for investment and financial services in recent years has created conditions for retail banks such as VIB to maintain a positive growth rate in the past six years and into the future.

Sustainable business performance

VIB’s business performance compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

VIB has recorded its return on equity (ROE) ratio at over 30 per cent for three consecutive years thanks to its focus on retail and effective operating model.

Attractive dividend payout ratio

VIB’s dividend payout, 2017-2022. Photo from VIR.

With its ROE among the market’s highest, VIB maintained the highest dividend payout ratio at 40 per cent in 2020, and 35 per cent in 2021. The bank is expected to pay dividends at 35 per cent in 2022.

The bank’s Board of Directors has proposed that the 2022 dividend be paid 15 per cent in cash and 20 per cent in shares. VIB’s leaders expect a dividend policy to be developed so that the bank can pay annual cash dividends to shareholders starting in 2023.

The bank with the lowest concentration risk in the market

VIB’s outstanding balance, 2017-2022. Photo from VIR.

VIB’s outstanding retail loans account for up to 90 per cent of its total loan portfolio. Of the total, up to 91 per cent of loans are secured by assets, while the remainder is mainly credit card loans. Meanwhile, the outstanding balance of corporate bonds equals less than 1 per cent of the bank’s total credit balance.

As a result, for five consecutive years, the ratio of provision expenses to VIB’s outstanding loans was only 30-50 per cent of the average of other Top 10 listed banks. This is considered one of the crucial factors that have helped VIB achieve profitability and a high ROE ratio.

Ranked No.1 across several metrics

VIB to announce dividend payment plans at its upcoming AGM

VIB has been ranked by the State Bank to be the top bank when it comes to capital, profit, asset quality, liquidity quality and sensitivity management criteria.

A pioneer in card and technology trends

Vie, VIB’s AI virtual financial expert. Photo from VIR.

Continuing sustainable growth momentum in 2023

VIB has marked essential milestones on its journey to becoming the leading retail bank in Vietnam during the first six years of its 10-year strategic transformation period from 2017 to 2026.

In a document sent to the AGM, VIB’s Board of Directors outlined the goals for the five-year period from 2022 to 2026, including attracting 10 million customers and achieving an annual compound growth rate of 20-30 per cent each year, thereby sustainably increasing market capitalisation for shareholders.

VIB leaders said they believed the bank would achieve its objectives for 2023 and complete the 10-year transformation goal thanks to its creativity and persistence in large-scale transformation activities, excellent operating model, advanced corporate culture, and its staff’s capability and enthusiasm.

Source: VIR

Source: https://e.nhipcaudautu.vn/companies/vib-to-announce-dividend-payment-plans-at-its-upcoming-agm-3351185/

Up Next

Domestic investors open less than 100,000 new accounts in first two months

Don't Miss

VN’s foreign exchange reserves reach US$92.43 billion

Business

Former S.Korean president calls on firms to invest in northern Vietnamese province

Published

11 mins ago

December 9, 2023

TienphongNews

Former South Korean President Lee Myung Bak called on his country’s enterprises to invest in Thai Binh Province, northern Vietnam at an investment, trade, and tourism promotion conference held in the province on Saturday.

At the conference held by the Thai Binh administration, the former South Korean leader expressed his pleasure at the considerable development of the Vietnam – South Korea cooperation in various sectors.

In 2022, the two countries elevated their ties to a comprehensive strategic partnership.

The two countries’ bilateral trade reached $88 billion last year. South Korea was the largest provider of foreign direct investment (FDI) in Vietnam, at US$80.5 billion.

According to Lee, there is still a lot of room for the two sides’ further cooperation.

The Korea Desk Thai Binh model, which promotes South Korean investment in the Southeast Asian country, has proved effective.

“I expects the local authorities to enhance dialogues to promptly remove difficulties and provide the maximum support for South Korean enterprises,” Lee said.

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, says the province always creates favorable conditions for investors. Photo: T.Thang / Tuoi Tre

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, says the province always creates favorable conditions for investors. Photo: T.Thang / Tuoi Tre

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, stressed that the Thai Binh – South Korea investment, trade, and tourism promotion conference was important to open up many new cooperation opportunities between Thai Binh and South Korean partners as well as between the two countries as a whole.

Thai Binh is considered a dynamic province with great potential and competitiveness.

Its gross regional domestic product was estimated at VND68 trillion ($2.8 billion), 1.3 times higher than that in 2020. The province’s average economic growth is likely to reach 8.56 percent in 2021-23.

Thai Binh has a young workforce with some 1.2 million laborers. It can provide about 40,000 laborers, including 25,000 trained ones.

The province has attracted over $3 billion in FDI this year. South Korean investors have registered to pour $256 million into 30 projects in the Vietnamese province.

However, the figures were modest and not commensurate with the province’s potential, Than added.

“With a favorable geographical location, traffic systems, human resources, and a land bank for large industrial production, Thai Binh is an ideal destination for investors,” he remarked.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20231203/former-skorean-president-calls-on-firms-to-invest-in-northern-vietnamese-province/77070.html

Business

Vietnam’s e-commerce to hit 20.5 billion USD this year: conference

Published

4 hours ago

December 9, 2023

TienphongNews

Vietnam’s e-commerce is expected to reach 20.5 billion USD this year, affirming its important role in the national digital economy, heard a conference held by the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT) in Hanoi on December 1.

Vietnam’s e-commerce to hit 20.5 billion USD this year: conference hinh anh 1

A view of the conference. (Photo: VNA)

Hanoi – Vietnam’s e-commerce is expected
to reach 20.5 billion USD this year, affirming its important role in the
national digital economy, heard a conference held by the Vietnam E-commerce and
Digital Economy Agency under the Ministry of Industry and Trade (MoIT) in Hanoi
on December 1.

In his remarks, Deputy Minister Do Thang Hai noted
that the domestic e-commerce market has witnessed the formation of a secondary
service supply system, referring to technology platform services in support of
e-commerce transactions, marketing services, online marketing communications
and delivery services.

The official pointed to obstacles to e-commerce in
Vietnam relating to ensuring traceability of goods, safety and security of personal
information, and the logistics infrastructure.

To remove them, he suggested that Online Friday, a
big online shopping programme in the year, be promoted to achieve the
targets of developing the e-commerce market sustainably, and further protecting
the rights and interests of consumers and other insiders.

He also said experts should work on orientations for the
sustainable development of Vietnam’s e-commerce in the time ahead, and the
State and businesses raise digital technology solutions to boost the e-commerce
ecosystem.

At the conference, management agencies, e-commerce
platforms, payment intermediaries, and banks committed to joining the digital ecosystem,
protecting the rights of consumers and others engaging in e-commerce
transactions.

Within the framework of the conference, there was a
seminar on digital ecosystem solutions to enhance the protection of consumers
and others in e-commerce transactions in Vietnam./.

Source: https://en.vietnamplus.vn/vietnams-ecommerce-to-hit-205-billion-usd-this-year-conference/272161.vnp

Business

Construction ministry to auction 49% stake in Song Hong Corporation

The Ministry of Construction plans to auction 13.2 million shares in Song Hong Corporation, equivalent to 49.04% of capital, according to the Hanoi Stock Exchange’s filing.

Published

5 hours ago

December 9, 2023

TienphongNews

img3108-min-20231207111607406_81033676-1

The starting price is VND10,500 per share, which is 4.7 times more than the closing market price of SHG on December 7. The auction is scheduled to take place on December 22 at the Hanoi Stock Exchange. From November 30 to December 15, investors can register for the auction and make deposits.

In the past 6 months, SHG shares traded around VND2,000 per share and had almost no transactions for many consecutive sessions. Closing the session on December 7, this stock stopped at VND2,200 per share.

This is not the first time the Ministry of Construction has auctioned SHG shares. In 2020, the Ministry of Construction organized an auction for all SHG shares owned by the Ministry with a starting price of VND10,000 per share, while the price of SHG shares at that time was only about VND2,000 per share.

However, the Hanoi Stock Exchange announced a temporary suspension to ensure compliance with the government’s regulations at that time and wait for instructions from the competent authority.

Song Hong Corporation is one of the first member units of the Ministry of Construction, established in August 1958 with the name Viet Tri Architecture Company. In August 2006, this enterprise was converted to a parent-subsidiary company model and named Song Hong Corporation. The current charter capital is VND270 billion.

Song Hong Corporation launched its initial public offering (IPO) in 2009 with a starting price of VND14,000 per share. In April 2015, Song Hong Corporation was listed on UPCoM with a starting price of VND9,600 per share.

Since equitization, and especially after being listed on UPCoM, the company’s business situation has regressed and continuously suffered losses. Especially in 2018, the corporation had a record loss of nearly VND388 billion.

Capital recovery at construction projects has resulted in a sizable capital backlog, which Song Hong Corporation raised at the Annual General Meeting of Shareholders every year. This affects the corporation’s reputation with credit institutions as well as incurring capital costs.

The poor financial situation and serious imbalance also make it difficult to access new projects and jobs because Song Hong Corporation is unable to win bids.

In the first six months of 2023, the corporation had no revenue from construction activities and only recorded nearly VND4 billion from providing services, down 82% over the same period.

Interest expenses of more than VND36 billion are the main reason why the company lost nearly 27 billion VND in the first half of the year, increasing the accumulated loss by the end of the second quarter of 2023 to VND1,293 billion.

In the review report, CPA Vietnam Auditing Company Limited made a series of exclusionary conclusions when it was not possible to collect records of the reconciliation of receivables, and at the same time, it was not possible to collect sufficient appropriate evidence about the estimated amount. The receivable room needs to be appropriated.

CPA Vietnam also cannot express an opinion on the completeness of liabilities and the impact of this issue on the financial statements.

The audit also emphasized that, as of June 30, the corporation had short-term debt exceeding short-term assets by nearly VND987 billion. The accumulated loss is VND1,293 billion, and the negative equity is VND987 billion.

The company’s ability to operate depends on the recovery of debts, improving the efficiency of the rental business, and capital support from shareholders. These conditions make CPA Vietnam doubt the corporation’s ability to continue operating.

As of June 30, total assets were more than VND985 billion. Short-term receivables are nearly VND381 billion, of which customers’ receivables are VND169 billion. The company recorded bad debt of more than VND381 billion with a recovery value of about VND118 billion.

Inventories are at VND405 billion, mainly the unfinished production and business costs of the Vung Ang 1 Thermal Power Plant and other projects.

The amount of cash and cash equivalents is more than VND4 billion, while outstanding financial debt is more than VND313 billion. In addition, the company also recorded approximately VND913 billion in other payable expenses such as loan interest, and accrual of the cost of construction projects,…

The company’s real estate asset portfolio includes two plots of property at 70 An Duong, Tay Ho District, Hanoi, which serves as the corporation’s headquarters, and one piece of land at the Lao Cai branch.

There is also the Royal Song Hong Hotel project (Vinh Phuc), which has received approval from the Ministry of Construction to allow the company to look for partners to transfer the project.

Source: https://e.nhipcaudautu.vn/market/constructionministry-to-auction-49-stake-in-song-hong-corporation-3356605/