Shareholders concerned about merger
At the 2023 Annual General Meeting of Shareholders of Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) on the afternoon of April 21, the bank's shareholders approved 11/12 proposals of the Board of Directors, except for the proposal on the plan to merge a credit institution that is a commercial bank operating normally in Vietnam with criteria on total assets, equity at the average level in the market, and good credit quality.
At the Congress, only 56.16% of bank shareholders attending agreed to approve the proposal to merge a commercial bank, not reaching the required rate of 65%.
Many MSB shareholders also expressed concerns that this merger could affect MSB's business results and future growth. Notably, MSB has not yet provided information about the target bank expected to receive the merger, making it impossible for shareholders to assess the effectiveness of the deal.
Previously, MSB said the purpose of the merger was to take advantage of the network system, personnel and business activities of the acquiring bank to increase MSB's scale of operations and successfully implement the bank's digitalization strategy.
MSB's 2023 Annual General Meeting of Shareholders.
According to General Director Nguyen Hoang Linh, MSB has experience merging with MDB bank in 2015. Looking at the merger in recent years with MDB, the Board of Directors sees that MSB has experience in operational management, which does not greatly affect profits, operating results, or debt settlement issues.
According to Chairman of the Board of Directors Tran Anh Tuan, the issue of bank mergers is not decided by the Board of Directors but is submitted to shareholders for approval and this matter ultimately depends on the final decision of the State Bank.
"This agency will check and evaluate whether MSB's capacity is sufficient or not before approving it and shareholders can vote to approve this issue," Mr. Tuan affirmed.
Considering attractive dividend rate
At the meeting, MSB shareholders agreed not to pay dividends or bonus shares. Previously, the bank paid dividends and bonus shares at a rate of 30% in 2021 and 2022.
The bank's Board of Directors said that due to the volatile stock market situation, negative impacts from interest rate trends, and high risk management requirements from management agencies, the bank wants to maintain its current equity and charter capital to create a solid buffer capital source for the bank.
When the market situation becomes more positive, the Board of Directors will submit to the General Meeting of Shareholders a plan to distribute dividends/bonus shares appropriate to the profits generated in 2022. Currently, the remaining profit, after tax and fund provisions in 2022, is VND 3,922 billion.
Responding to a shareholder's question about the capital adequacy ratio (CAR) of 12.9% being quite high but still not paying dividends to increase benefits for shareholders, General Director Nguyen Hoang Linh affirmed that the remaining profit, in addition to fund allocation, is the asset and value of shareholders.
However, the bank has just increased its capital to VND20,000 billion, and the board of directors also hopes to be able to sell Vietnam Maritime Commercial Joint Stock Bank One Member Co., Ltd. (FCCOM) at a high profit, at which time it will pay dividends to shareholders at a better rate.
"The bank will pay dividends, but at the moment it is still considering a truly attractive rate. I affirm that the retained profits belong to the rights and assets of shareholders, there is no other choice.", Mr. Linh emphasized .
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