Shareholders propose 50% dividend
At the 2023 Annual General Meeting of Shareholders of Tien Phong Commercial Joint Stock Bank (HoSE: TPB), shareholders approved the plan to pay dividends at a rate of 39.19% in shares.
The capital source implemented from the accumulated undistributed retained earnings up to 2021 is more than VND 1,536 billion, equity surplus (VND 2,561 billion) and VND 2,102 billion taken from the retained earnings in 2022.
The total number of shares expected to be issued is nearly 620 million shares. After issuance under this plan, TPBank 's charter capital will increase from VND15,817 billion to VND22,016 billion.
At the General Meeting, TPBank shareholders proposed increasing the dividend rate to 50% when the bank's growth rate still has room and retained earnings are still sufficient.
Responding to this proposal, Mr. Do Minh Phu - Chairman of TPBank's Board of Directors said that in setting this capital increase rate, the Board of Directors had to base it on the bank's equity capital capacity, the capital to be increased would come from retained profits.
Mr. Do Minh Phu - Chairman of TPBank Board of Directors.
“The Board of Directors has considered and found that the 39.19% increase to more than VND22,000 billion in charter capital is appropriate. We do not want to increase all of it but leave some reserves. This is a fairly high increase, normally banks will increase their charter capital by less than 20%,” Mr. Phu explained.
Bank shareholders also questioned whether the plan to pay dividends as high as 25% as in 2022 would continue. Chairman Do Minh Phu said that with the remaining profits, there are many distribution options such as increasing equity and investment. TPBank will use the profits generated to distribute to shareholders so that the remaining part ensures the bank's stable operation.
“If TPBank continues to operate smoothly and achieve high growth, the bank will continue to pay dividends to shareholders in two parts: cash and shares. The Board of Directors will consider the dividend rate at each time, but the cash portion will be significant,” Mr. Phu affirmed.
There will be more consumer finance companies
TPBank's General Meeting of Shareholders also approved the policy of contributing capital and purchasing shares to acquire a subsidiary operating in the field of fund management.
The bank said this is an objective necessity for TPBank, aiming to improve its position and competitiveness in the regional and global financial markets.
According to TPBank General Director Nguyen Hung, this management company will operate in a fairly broad field in different financial markets such as individual funds, open, closed, investing in VN30 bond basket. This fund will call for contributions from organizations and individuals and is a professional management company.
In addition, answering shareholders about the restructuring process of the finance company, Chairman Do Minh Phu shared that TPBank participated in the restructuring of Hanico HAFIC Finance Joint Stock Company, this issue was carefully prepared and considered.
“Currently, we support HAFIC with a self-recovery and self-recovery plan. If the plan is completed, TPBank will have one more consumer finance company to diversify the banking ecosystem,” said Mr. Phu.
Currently, TPBank's ecosystem has TPS Securities Company as an affiliated company contributing less than 11% of capital, the fund management company as a subsidiary, and it is expected that the consumer finance company will also be a subsidiary.
TPBank's 2023 Annual General Meeting of Shareholders.
Notably, the Congress elected three new members to the Board of Directors and the Supervisory Board: Ms. Nguyen Thi Mai Suong, Ms. Vo Bich Ha and Ms. Nguyen Thi Thu Huong.
Ms. Nguyen Thi Mai Suong has many years of experience working at the State Bank and the Banking Association. Ms. Suong was the Director of the State Bank of Vietnam, Hanoi Branch (2009-2016) and Head of the Banking Association (2016-2022).
Ms. Vo Bich Ha has 20 years of experience working at BIDV, holding the positions of Director of Investment Management Department and Head of BIDV's Board of Supervisors.
Ms. Nguyen Thi Thu Huong has many years of experience working at the State Bank and BIDV. She was the Director of the Department of Inspection and Supervision of Foreign Credit Institutions, under the Banking Inspection and Supervision Agency, State Bank from 2011-2019. From 2019-2022, Ms. Huong was a member of the Board of Directors, representing 30% of state capital at BIDV .
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