Movements at PGBank before the extraordinary General Meeting of Shareholders

TC Group's presence is increasingly evident

Prosperity and Development Commercial Bank (PGBank - UPCoM: PGB) has just announced amendments and additions to the documents for the 2024 Extraordinary General Meeting of Shareholders.

Accordingly, the bank plans to submit to the General Meeting of Shareholders for approval the change of its head office location from HEAC Building to Thanh Cong Tower because HEAC Building is currently undergoing renovations, which are expected to take a long time to complete and do not currently meet the bank's requirements for its head office.

Information on the website of Thanh Cong Asset Management and Services Company Limited (PSC) shows that the HEAC Building and Thanh Cong Building are both invested by Thanh Cong Group (Thanh Cong Tower).

Accordingly, the Thanh Cong Building was invested in by Thanh Cong Group with a scale of 40 million USD and has been in operation since 2020.

PGBank wants to move its head office to Thanh Cong Building.

Previously, in the article "PGBank after changing ownership and difficult problems from the Law on Credit Institutions", Nguoi Dua Tin informed that 2/3 of PGBank's strategic shareholders are related to TC Group.

At the same time, a new name has appeared on the PGBank Board of Directors: Vice Chairman Dao Phong Truc Dai. Mr. Dao Phong Truc Dai was formerly an independent member of the Board of Directors of Eximbank, representing the Thanh Cong Group.

Mr. Dai has held many key positions at Thanh Cong "family" enterprises such as Financial Director of Thanh Cong Technical Service JSC, General Director of Thanh Cong Viet Hung Technology Complex Industrial Park JSC, General Director of PV-Inconess Investment JSC...

Two candidates for the by-election to the Board of Directors have been revealed.

PGBank has just released information regarding the resumes of two candidates expected to be elected to the Board of Directors: Ms. Cao Thi Thuy Nga and Mr. Dao Quoc Tinh.

Accordingly, Mr. Dao Quoc Tinh was born in 1962 in Thai Binh province , holds a PhD in Economics from the Banking Academy. Mr. Tinh has nearly 40 years of experience in the finance and banking sector. He has held various positions at VietinBank and Agribank.

In addition, he has held many positions at the State Bank of Vietnam such as Deputy Head of Payment Department - Economic Research Department, Deputy Head/Head/Deputy Director in charge of Internal Audit - General Inspection Department…

Ms. Cao Thi Thuy Nga was born in 1958 in Nam Dinh, has a Master's degree in Finance from the Academy of Finance. She has 37 years of experience working in the banking and finance sector, holding many important positions at BIDV, Public Bank Vietnam, MB and MB Securities (MBS).

PGBank Chairman through the years.

Before this extraordinary congress, PGBank's senior staff also continuously changed. In just 5 months, the bank changed 3 Board Chairmen.

At the extraordinary general meeting of shareholders in October 2023, PGBank shareholders elected 5 additional members to the Board of Directors and 2 members of the Supervisory Board.

However, the bank's 2024 Annual General Meeting of Shareholders approved the dismissal of two members from the Board of Directors, Mr. Nguyen Thanh Lam (independent member of the Board of Directors) and Ms. Dinh Thi Huyen Thanh. On April 25, Ms. Dinh Thi Huyen Thanh also resigned from the position of General Director of PGBank.

How is PGBank doing?

Regarding business performance, in 2011, PGBank recorded a net profit after tax of 446 billion VND. However, by 2012, this profit had nearly doubled compared to the previous year, falling to 240 billion VND.

Even in 2013, PGBank's profit dropped to 38 billion VND. PG Bank went through a period of poor business with a loss of several tens of billions of VND.

From 2013 to 2019, PG Bank's after-tax profit fluctuated erratically, but even at its highest, it did not reach 150 billion VND. In the period from 2020 to 2022, the bank's after-tax profit showed some improvement, but it still failed to reach the 500 billion VND mark.

Following Petrolimex's divestment, PGBank even reported a net loss of 4.6 billion VND in the fourth quarter of 2023, indicating a sluggish business period, a step backward compared to the profit of 95 billion VND in the same period of the previous year.

PGBank stated that the reason for the decline in Q4/2023 profits was due to the reduction in lending interest rates to customers in accordance with the Government's policy, while funding costs had not decreased due to a time lag, and credit growth was concentrated in the last month of 2023.

By the end of 2023, the bank's total assets increased by 13% compared to the beginning of the year, reaching VND 55,495 billion. Of this, customer loans increased by 22% to over VND 35,000 billion. On the funding side, customer deposits increased by 14% to VND 35,729 billion.

Notably, in terms of loan quality, by the end of 2023, PG Bank's total bad debt was VND 905 billion, an increase of 21.5% over the previous year, the highest in the past 10 years.

In addition, after the appearance of TC Group, PGBank's 2023 financial statements recorded that the bank's outstanding loans for wholesale, retail, and auto repair increased from VND 1,700 billion (accounting for 5.86% of total outstanding loans) to VND 3,905 billion (accounting for 11.05% of total outstanding loans).

Special bonds issued by VAMC by the end of 2023 recorded more than VND 949 billion and by the end of the second quarter of 2024 were nearly VND 985 billion, an increase of 3.8%.

However, by the first half of 2024, the bank's bad debt had also improved significantly with a total bad debt of VND958 billion, down 5% compared to the beginning of the year. The ratio of bad debt/loan balance decreased from 2.85% to 2.61%.

At the end of the second quarter of 2024, PGBank recorded net interest income of VND437 billion, up 28.1% over the same period last year. The bank reported pre-tax profit of VND151.5 billion and post-tax profit of VND121 billion, both up slightly by 0.7% over the same period last year.

This is the first quarter that the bank has recorded profit growth since the appearance of a new group of shareholders related to TC Group. Accumulated from the beginning of the year until now, PGBank recorded net interest income of VND815 billion, up 19.7% compared to the previous year.

Due to the decrease in profit in the first quarter of 2024 compared to the same period, despite positive business performance in the second quarter, the bank still reported a 7% decrease in pre-tax profit and after-tax profit in the first 6 months of 2024 compared to the same period, down to VND 268 billion and VND 214 billion, respectively.

In 2024, PGBank set a pre-tax profit target of VND 554 billion, an increase of 57.7% compared to 2023. Thus, by the end of the second quarter of 2024, the bank had achieved 48.3% of the set profit target.

PGBank's extraordinary general meeting of shareholders is expected to be held on the morning of August 26 at The Five Residences Hanoi Hotel, 345 Doi Can, Lieu Giai Ward, Ba Dinh District, Hanoi.

Source: https://www.nguoiduatin.vn/nhung-chuyen-dong-tai-pgbank-truoc-them-dhdcd-bat-thuong-204240823163000912.htm