On March 27, Vietnam International Commercial Joint Stock Bank ( VIB ) held its 2025 Annual General Meeting of Shareholders in Ho Chi Minh City.
At the meeting, shareholders also asked the Board of Directors many questions about ensuring credit growth as well as how foreign shareholders' divestment would affect the bank's strategy.
Mr. Dang Khac Vy, Chairman of the Board of Directors of VIB Bank. (Photo: Dai Viet)
Mr. Dang Khac Vy, Chairman of the Board of Directors of VIB Bank, said that regarding credit growth, Vietnam's GDP is growing at 6-7%/year and credit growth is 14-15%/year. Although the situation still has many challenges, when looking at the macro, the target of double-digit GDP growth, credit growth of 16% is reasonable.
For VIB, credit growth is at 22-23%. VIB's lending capacity is very good and in the next 10 years, the bank will always target credit growth at 20% or more.
According to the Chairman of VIB, competition in the market is always strong but there is nothing to worry about. Competition creates great motivation, the more competition, the healthier the business. In the period from 2017-2024, the retail sector accounts for 80% of VIB's total outstanding credit, so shareholders have nothing to worry about competition.
Recalling foreign investment, Mr. Vy shared that in the past 10 years, Commonwealth Bank of Australia (CBA) has invested in VIB. In the past 5 years, CBA has changed its investment strategy globally, including Vietnam. Therefore, CBA has divested and created a foreign room of about 25% for VIB to attract in the next phase. CBA's investment of 175 million USD in VIB has helped CBA earn nearly 500 million USD. This is an effective investment of CBA.
VIB Bank's Board of Directors recognizes that from 2025 onwards, the bank needs to increase its equity and seek suitable partners to share its strengths. When good partners are found, the Board of Directors will seek shareholders' opinions.
VIB Bank's annual general meeting of shareholders took place in Ho Chi Minh City. (Photo: Dai Viet)
Shareholders also questioned the sharp increase in VIB's CIR (cost to income) index, where did this come from? Mr. Vy said that 2024 is a difficult year for banks with "substantial" financial reports. Reducing lending prices in the context of mobilization prices not decreasing proportionally causes revenue to decrease.
Therefore, CIR increased in the context of needing to support interest rates for customers.
Shareholders are also interested in profits in the first quarter of 2025, the Chairman of VIB shared, the bank's expected first quarter profit is about 20-22% of the annual profit target (VND 11,000 billion). Also according to the Chairman of VIB, the growth in the following quarters is better than the first quarter, with an increase of 30-40%.
At the congress, Mr. Ho Van Long, Deputy General Director of VIB Bank, also reported on the bank's 2024 profit distribution plan.
Accordingly, by the end of 2024, VIB will have more than VND6,000 billion in remaining profit after setting aside funds. The bank plans to spend VND2,085 billion to pay cash dividends to shareholders.
In addition, VIB wants to issue up to 417.07 million bonus shares to existing shareholders (equivalent to 14%) and 7.8 million bonus shares to employees. After the issuance, the bank's charter capital is expected to increase by VND4,249 billion, from VND29,791 billion to VND34,040 billion. All of the additional capital will be used by VIB for production and business activities.
In the 2025 business plan, VIB aims to have total assets of VND600,350 billion, up 22% compared to 2024. Total outstanding credit is expected to increase by 22%, reaching VND395,800 billion. Capital mobilization increases by 26% to VND377,300 billion. Pre-tax profit target is VND11,020 billion, up 22% compared to 2024. Bad debt ratio is controlled below 3%.
Source: https://vtcnews.vn/vib-tim-co-dong-chien-luoc-moi-phat-hanh-them-hon-417-trieu-co-phieu-thuong-ar934111.html
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