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The congress approved the plan to pay a dividend of 44.6% to increase capital from VND53,700 billion to VND77,671 billion. Accordingly, VietinBank plans to issue a maximum of nearly 2.4 billion shares to existing shareholders. The source of implementation will be taken from retained earnings in 2021, 2022 and the period 2009 - 2016. The general meeting of shareholders will authorize the Board of Directors to decide on the specific issuance time after receiving approval from the competent authority.
All additional capital will be used to serve business, invest in facilities, technology infrastructure, develop services and expand credit activities, investment and other business activities.
VietinBank has also proposed that competent authorities approve the policy allowing the bank to retain all annual profits from 2024 to 2028 to increase capital, improve financial capacity, and expand credit growth. Bank leaders affirmed that this is the optimal solution to ensure capital safety and long-term shareholder benefits, in the context that CTG shares have good liquidity and still have great potential for price increase.
Responding to shareholders’ questions about not paying cash dividends, Mr. Tran Minh Binh, Chairman of the Board of Directors of VietinBank, said that VietinBank’s charter capital is very small, even if it increases its capital by 45%, it is still small compared to growth needs. Therefore, to ensure capital safety and growth, the bank needs to increase its charter capital. Not to mention, VietinBank cannot decide on its own to pay dividends, because it depends on the opinions of the relevant ministries and branches.
General Director Nguyen Tran Manh Trung added that regarding dividend policy, all decisions, from the rate to the form of distribution - cash or shares - must await the opinions of the governing ministries, major shareholders, and especially state management agencies.
"In 2025, we do not have a plan to pay cash dividends, but will increase capital with shares from retained earnings. The reason is that the banking industry is currently in dire need of increasing capital to meet the requirements of Basel II, towards Basel III. In such a context, retaining profits to increase capital is appropriate and necessary," Mr. Trung affirmed.
According to the plan, this year VietinBank aims to increase total assets by 5-10% in 2025, and control the bad debt ratio below 1.8%. Other targets will be subject to approval by the State Bank.
General Director Nguyen Tran Manh Trung said that the State Bank is allocating a credit limit of about 15% to VietinBank. If the economy grows well, the growth rate could be over 16%. Capital mobilization growth is consistent with credit growth.
The bad debt ratio is expected to be maintained below 1.8%, striving for a range of 1.2% - 1.5%. The credit risk provision is expected to be VND 20,000 - 25,000 billion. The bad debt coverage ratio is about 150 - 200%. The CASA ratio (non-term deposits) will strive to maintain the level of 25% as in 2024, ROE will reach 16-18%, ROA over 1%, CIR will be maintained around 30%, credit costs will be controlled below 2% - assuming the economy does not fluctuate strongly.
As of April 15, 2025, VietinBank's total assets reached about VND 2.5 million billion, up 3.9% compared to the beginning of the year. Outstanding credit reached about VND 1.8 million billion, up 4.7%. Individual capital mobilization reached VND 2.3 million billion, up 6%. Bad debt according to Circular 31 is currently at 1.36% - 1.46%, while according to the usual calculation method, it is 1.66%. Individual pre-tax profit is estimated at VND 9,417 billion, up 19.6% compared to the same period in 2024.
Assessing the prospects for 2025, VietinBank leaders said that the situation will be more difficult than in 2024 when the US tightens monetary policy and global fluctuations increase. The management pressure on the Government , the State Bank and the entire credit institution system will certainly be greater.
However, VietinBank's leaders are still optimistic about this year's business results, partly thanks to the acceleration of disbursement in the public investment sector. "The bank is closely following and proactively approaching large public investment projects, including those of domestic and foreign investors. Since 2024, we have been traveling abroad to meet with partners. Basically, we will approach the projects and be ready to provide capital and services for these projects. We commit that VietinBank's business results in 2025 will be very impressive compared to 2024," Mr. Binh affirmed.
Regarding NIM (profit margin) this year, Mr. Binh said that interest rates in the market are on an upward trend, but the interest rate level is still generally under control. Given the complicated developments in 2025 (capital costs increase slightly while banks still have to support according to the Government's direction), NIM is likely to be affected. Therefore, to improve NIM, VietinBank aims to control capital costs through the application of technology, attracting high-potential customers, projects to increase asset profitability, increase cross-selling efficiency, etc.
VietinBank is accelerating digital transformation, specifically implementing 108 fundamental initiatives in phase one of the digital transformation program. Currently, about 60-70% of products are put on digital channels, and transactions via digital channels account for 99%.
In addition, VietinBank will also be the first bank in the group of four state-owned commercial banks to study the reduction of physical transaction desks. Specifically, the bank will cut several hundred transaction points and replace them with digital platforms to better serve customers, enhance experience and cut costs.
Source: https://baodautu.vn/dhdcd-vietinbank-khong-chia-co-tuc-tien-mat-tang-von-dieu-le-len-77671-ty-dong-d269114.html
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