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A cash dividend rate of up to 30% can be paid from next year

Following the sale of a 49% stake in FE Credit to SMBC Consumer Finance Company – a subsidiary of Japan’s SMCB Financial Group last year – many eyes are following the plan to privately issue 15% of the seed capital. Interest rate of this bank for foreign investors in 2022.

Responding to questions from shareholders and investors at the 2022 AGM, VPBank Chairman Ngo Chi Dung said the bank is in an active negotiation phase and will finalize and announce the name soon. Foreign partners will join VPBank in the near future.

“The negotiation process is ongoing and very positive, but unlikely to be completed in the second quarter, the capital sale can certainly be completed in the upcoming third quarter,” said Dung.

According to VPBank, a private placement for strategic partners with a maximum of 15% of the start-up capital and a simultaneous increase in the foreign investment quota to a maximum of 30% of the start-up capital will not only cover the company’s need for a capital increase. of this bank, but also an opportunity to strengthen cooperation, gain management experience, operate and improve the capacity of foreign partners.

In the plan approved by the AGM, VPBank will increase its initial capital to over VND79 trillion, a 76% increase from 2021. The capital increase plan will be implemented through ESOP share issuance and share distribution. Dividends in shares from undistributed earnings and private placement to foreign investors. Last year, this bank increased its initial capital from more than 25 trillion dong to 45 trillion dong. Thus, in 2022, VPBank will intensify its seed capital raising activities for the second year in a row and, following the successful implementation of the capital increase, will become the bank with the largest seed capital in the system.

The continuous increase in the initial capital of this bank has attracted the attention of many investors, given that some other large banks have modest capital raising plans or have even been unable to do so for years. capital increase.

Earlier, Mr. Nguyen Duc Vinh, General Manager of VPBank, reiterated in an exchange with investors that the purpose of the bank’s capital increase is not to become a financial institution with the largest registered capital, but to strengthen the bank’s capital. Solid capital base for the development of VPBank over the next 5-10 years.

VPBank is currently working with a late-stage strategic consulting partner to finalize its next 5-year development plan, which will outline market and business opportunities and associated challenges. An action plan and program with initiatives, projects etc. will be announced to shareholders and investors in the near future.

The bank’s ambitions also became clearer with the rebranding announced in early April. Accordingly, VPBank has decided to become the largest private bank in Vietnam and to fulfill the mission “For a prosperous Vietnam”.

To achieve the above goal, VPBank acquired ASC Securities Company earlier this year and changed its name to VPBank Securities. The entry of this securities company into the ecosystem not only helps this bank to capitalize on the flourishing trend of securities investment activities in the market in recent years, but also expands its activities into the field of investment banking and investment banking. wealth management. The total investment capital of VPBank that has flowed into this securities company is up to VND 20,000 billion.

In addition, VPBank will shortly complete the acquisition of shares in OPES insurance company to focus on developing the non-life insurance product segment in addition to the life insurance product segment currently working with AIA.

At the meeting, shareholders also asked VPBank executives about the stock price history, whether VPBank or VPBank’s securities firm took any action to support the stock price?

Mr. Ngo Chi Dung said that the board’s job is to do the best banking to increase the value of the bank and the stock, but we cannot let the stock price rise. However, VPBank has a capital buffer and a good foundation. Maybe next year it will be a matter of buying own shares, which can be sold at the right time and bring profits for the bank.

At the end of the meeting, the Chairman of the Board of Directors of VPBank surprised the shareholders, who lingered until the last minute, with an announcement: “With the capital base achieved at the end of this year, it is not only enough to secure the planned growth high in the next 5 years, with the Board of Directors of it assumes that the Board of Directors will propose a cash dividend of up to 30% of annual profit after tax to the Annual General Meeting from next year”.

In 2022, VPBank aims to increase total assets to over VND697 trillion and pre-tax profit of nearly VND30 trillion, up 27% and 107% from 2021, respectively. In the first quarter, the bank recorded consolidated pre-tax profit of VND11,146 billion, almost three times the same period last year and the highest ever.

https://cafef.vn/chu-tich-hdqt-vpbank-tu-nam-sau-co-the-chia-co-tuc-tien-mat-ty-le-toi-30-20220429184137861.chn


M.Phuong-H.Kim

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