Global Petroleum Bank (GPBank) has been continuously making losses since before it was placed under special control (in 2015) until the official mandatory transfer to VPBank in January 2025.
At the 2025 Annual General Meeting of Shareholders (AGM) of Vietnam Prosperity Joint Stock Commercial Bank (VPBank), held on the afternoon of April 28, Mr. Ngo Chi Dung - Chairman of the Board of Directors of VPBank, shared that VPBank has researched and developed a detailed action plan for GPBank, so it will certainly successfully restructure this bank.
“Before the mandatory transfer, GPBank lost an average of VND1,000 billion per year. But we expect GPBank to achieve a minimum profit of VND500 billion this year,” said Mr. Ngo Chi Dung.
According to Mr. Dung, VPBank participated in restructuring GPBank first of all because of its responsibility as a large bank. The bank also set a target of enjoying a credit growth limit (room) of 28% per year for 3 consecutive years.
At the same time, the transferee bank is also allowed to increase the foreign room to 49%. This is an opportunity for VPBank to invite more foreign partners or increase the ownership of strategic partners.
2025 is the third consecutive year that VPBank will pay cash dividends. The cash dividend rate this year is 5%, meaning VPBank will pay nearly VND4,000 billion to shareholders, bringing the total amount of cash dividends paid in the past 3 years to VND20,000 billion.
“The bank still has enough capital to maintain high-scale growth according to its development strategy for the following years. We are committed to continuing to pay cash dividends in the next two years,” said Mr. Ngo Chi Dung.
VPBank's General Meeting of Shareholders also approved the capital contribution investment plan, establishing a subsidiary in the life insurance sector and a subsidiary in the fund management sector.
Of which, the life insurance company is expected to have a charter capital of 2,000 billion VND. Vice Chairman of the Board of Directors Bui Hai Quan assessed that the establishment of a life insurance company under the group helps VPBank to be proactive in business opportunities as well as product development, and proactive in choosing customer care.
According to Mr. Quan, VPBank has gradually developed beyond a single bank. Life insurance is an indispensable part of a financial group.
Previously, since 2018, VPBank has established OPES Insurance Company, specializing in non-life insurance. OPES has brought VPBank 474 billion VND in profit in 2024 and is expected to increase to 636 billion VND this year.
Mr. Nguyen Duc Vinh, General Director of VPBank, said that building a group model helps VPBank optimize resources through creating common service centers, bringing improvements in cost reduction and increasing efficiency by 15-20%.
The bank's consolidated profit in the first quarter of 2025 is over VND 5,000 billion, and is expected to reach VND 6,000-7,000 billion in the second quarter.
"Thus, in the first 6 months of the year, VPBank will achieve 45-47% of the yearly plan and will make a breakthrough in the last 6 months of the year according to seasonal rules," said Mr. Vinh.
VPBank's General Director also said that FE Credit's outstanding debt in the first quarter increased by 30% compared to the same period last year, and old debt has also been gradually reduced. The consumer finance company's profit plan is VND1,126 billion this year.
“FE Credit's profit of 3,000-4,000 billion in the following years is not unrealistic,” Mr. Vinh believes.
Source: https://vietnamnet.vn/chu-tich-ngo-chi-dung-tiet-lo-tuong-lai-cua-nha-bang-nhan-chuyen-giao-2396024.html
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