Ho Chi Minh City Development Joint Stock Commercial Bank - HDBank (HDB) will hold its 2023 Annual General Meeting of Shareholders (AGM) tomorrow (April 26) with many important contents. Including presenting a plan to seek shareholders' opinions on continuing to participate in the credit institution restructuring program, a plan to buy a securities company and pay a 25% dividend.
Accordingly, the bank believes that participating in restructuring the system of credit institutions not only contributes to the healthy and stable development of the banking system and the economy , but also creates opportunities to bring added value to HDBank and shareholders.
At the same time, HDBank also asked for shareholders' opinions on the updated, revised and supplemented contents of the compulsory transfer acceptance plan according to the actual situation and instructions and approvals of competent state agencies at the time of submission.
In fact, in August 2022, the HDBank General Meeting of Shareholders gave written opinions and approved all the proposals of the Board of Directors with a high approval rate. In particular, shareholders approved the policy of participating in the restructuring of a credit institution in the form of compulsory transfer of a joint stock commercial bank under special control, with an approval rate of 81.52% of the total number of voting shares.
There are currently 5 commercial banks subject to restructuring, including DongA Bank, Construction Bank (CBBank), Ocean Bank, Global Petroleum Bank (GPBank); only Petrolimex Petroleum Bank (PGBank) is subject to restructuring in the direction of transferring capital or merging.
Previously, for a long time, HDBank has always pursued the M&A strategy, HDBank planned to participate in the credit institution restructuring program. In which, there was a plan to merge with Petrolimex Commercial Joint Stock Bank - PGBank (PGB). However, PGBank shareholders approved the termination of the merger plan with HDBank at the 2021 annual meeting on March 30, 2021.
HDBank is known as a bank that has successfully implemented many M&A projects, including the merger of a commercial bank and the acquisition of a financial company.
In 2013, HDBank merged with Dai A Bank and completed the process of connecting and merging the information technology system in a record time of 4 months.
Also in 2013, HDBank was the first domestic entity to acquire a 100% foreign-owned financial institution, Societe Viet Finance - SGVF (a subsidiary of Societe Generale banking group, France), the predecessor of HD SAISON Finance Company Limited.
Also at the Congress, HDBank will submit to shareholders for approval the acquisition of a securities company.
According to the report, HDBank said that Vietnam's economy is maintaining a stable growth rate. This is a very good premise for the development of the stock market. In addition, the number of securities accounts in Vietnam has only reached a rate of more than 6% of the population, which is still very low compared to the rate of 10% - 15% of other countries in the region and the world. The growth potential of the Vietnamese stock market is still very large.
In addition, HDBank will submit to shareholders for approval a plan to pay dividends in cash and shares at a total rate of 25%, thereby increasing its charter capital to VND29,276 billion.
Recently, the merger of some credit institutions has also been mentioned. Right before the 2023 General Meeting of Shareholders, the leaders of Maritime Bank (MSB) revealed the possibility of merging with PGBank. However, at the General Meeting of Shareholders of MSB held on April 21, shareholders did not approve the plan to merge with another bank.
Meanwhile, on April 7, the Vietnam National Petroleum Group (Petrolimex) successfully divested 120 million PGBank shares (40%) earning more than VND2,500 billion at an average price of VND21,400/share (much lower than the highest price of VND25,600/share traded on the morning of April 7 on the Upcom floor). Three institutional investors bought nearly all 120 million PGBank shares.
HDBank announced its 2023 business plan, with a pre-tax profit target of VND13,197 billion, an increase of 29% compared to 2022. The operating efficiency targets of return on equity (ROE) and return on assets (ROA) are at 24.5% and 2.3%, respectively.
Total assets are expected to increase from VND416,300 billion to over VND520,000 billion, equivalent to an increase of 25%. Outstanding credit is expected to increase by 24%, reaching VND333,500 billion. Bad debt is controlled below 2%.
Regarding capital, HDBank expects total mobilized capital to reach VND459,300 billion by the end of 2023, up 25% over the previous year. Charter capital is expected to increase from VND25,303 billion to VND29,276 billion, up 16%.
Regarding the 2022 profit distribution plan, the bank plans to pay cash dividends at a rate of 10% and stock dividends at a rate of 15%.
In 2022, HDBank recorded total assets of over VND416,000 billion, 7.8 times higher than in 2012. Customer deposits reached nearly VND260,000 billion. Owners' equity reached nearly VND39,000 billion. Pre-tax profit reached over VND10,268 billion, the highest ever and 24 times higher than 10 years ago.
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