VietinBank plans business for the period 2024-2029

On April 27, in Hanoi, Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) held the 2024 Annual General Meeting of Shareholders (AGM) and the 2024-2029 term.

VietinBank Annual General Meeting of Shareholders 2024.

The Congress reviewed and unanimously approved the following important contents: Report of the Board of Directors and the Board of Supervisors summarizing the activities for the 2019-2024 term and orientation for the 2024-2029 term; Report of the Board of Directors, Report of the Executive Board, Report of the Board of Supervisors on business performance in 2023 and development orientation in 2024; Approval of the audited financial report for 2023; Approval of the selection of an independent auditing company to audit/review the financial statements and operations of the internal control system in 2025; Approval of the profit distribution plan for 2023; Approval of remuneration for the Board of Directors and the Board of Supervisors in 2024; Approval of the listing of VietinBank's publicly issued bonds in 2024 on the Hanoi Stock Exchange after the end of the offerings; Approving the addition of securities clearing and settlement services to VietinBank's operations; Authorizing the approval of issuance, amendment and supplementation of VietinBank's Financial Regulations; Approving amendments and supplements to the Charter of organization and operation, Regulations on organization and operation of VietinBank's Board of Directors, Regulations on organization and operation of VietinBank's Supervisory Board; Approving the restructuring plan associated with bad debt settlement for the period 2021-2025; Electing members of the Board of Directors and Supervisory Board for the term 2024-2029... Safety - Efficiency - Sustainability During the term, the Bank's business performance indicators have shown positive growth. Total assets by the end of 2023 reached more than 2 million billion VND, 1.75 times higher than in 2018, with an average growth rate of 12%/year. Credit scale reached 1.48 million billion VND, 1.66 times higher than in 2018, with an average growth of 11.4%/year. Mobilized capital reached nearly 1.53 million billion VND, 1.75 times higher than in 2018, with an average growth of 12%/year. Liquidity safety ratios complied with regulations and continued to improve. The bad debt ratio was controlled below 2%, complying with safety limits prescribed by the State Bank. In addition to traditional activities, VietinBank focused on diversifying products and services: Total net service revenue grew strongly, reaching 8.5 trillion VND in 2023, 2.5 times higher than in 2018; non-interest income reached nearly 19 trillion VND, 2.75 times higher than in 2018, accounting for 26.9% of total operating income. VietinBank is also among the top banks with high operating efficiency in the period 2019-2024. The ROA and ROE profitability ratios in 2023 will reach 1.3% and 17.1% respectively, double the levels recorded in 2018. VietinBank is always at the forefront of implementing policies, orientations, and guidelines of the Government and the direction of the State Bank. The Bank has issued preferential interest rate loan packages and loan programs for priority sectors with reasonable lending interest rates for good customers with healthy financial activities and effective business plans in sectors prioritized by the Government. The credit ratio for these sectors accounts for about 40% of the total credit portfolio. The customer structure continues to shift positively towards increasing the proportion of small and medium-sized enterprises and retail customers; At the same time, VietinBank continues to maintain its leading position in serving large corporate and FDI customers. VietinBank is a leading bank in efforts to reduce deposit interest rates, while reducing operating costs, creating conditions for further reduction of lending interest rates. In the period of 2019-2024, VietinBank successfully implemented the Restructuring Plan for the period of 2018-2020 and continued to develop the Restructuring Plan for the period of 2021-2025; at the same time, the State Bank approved VietinBank's Development Strategy for the period of 2021-2025, with a vision to 2030. VietinBank constantly innovates, improves the quality of human resources at all levels, perfects the organizational model and network management, strongly promotes labor productivity improvement; implements and strongly spreads corporate culture. In addition, VietinBank focuses on improving risk management to ensure compliance and safety of the system; Strictly control debt quality, resolutely handle bad debts, potentially risky debts and effectively apply Resolution 42 in handling bad debts. Along with business activities, VietinBank continues to actively contribute to social security work according to the policies of the Party, the State Bank and the Government. In the period of 2019-2024, VietinBank has been performing well in social security activities, repaying gratitude with a budget of over VND 1,887 billion.

Chairman of the Board of Directors of VietinBank Tran Minh Binh spoke at the Congress.

The bank representative said that during the past term, the Board of Directors and the entire Board of Management of VietinBank have made efforts, determination, and constantly innovated their thinking and actions; promptly handled all difficulties in the Bank's operations; took advantage of all business opportunities; excellently completed the tasks assigned by the Party, the Government, the State Bank and shareholders; developed VietinBank in accordance with the strategic direction and set goals; continued to affirm and enhance the position and reputation of VietinBank in the domestic and international markets. New journey to create new values ​​In the period of 2024-2029, VietinBank will focus resources on drastic implementation, on schedule, closely following the long-term vision, operating philosophy and core values ​​of VietinBank, the 5-year strategy approved by the State Bank and the Board of Directors of VietinBank, maximizing internal strength, taking advantage of business opportunities in the medium term. VietinBank focuses on four pillars of growth in the medium and long term: Excellent growth of traditional business activities; Effective implementation of the digital transformation program; Exploiting the potential of the VietinBank ecosystem and capital recipients to increase and strengthen internal strength; integrating ESG to shape a sustainable future; At the same time, the Bank continues to improve service quality and improve labor productivity. VietinBank's development goals and orientations until 2029 are associated with the goal of becoming a leading multi-functional, modern and efficient bank in Vietnam. For 2024, it is forecasted that the world economy in general and Vietnam in particular will continue to face many difficulties and challenges. Based on the results achieved in 2023, VietinBank has identified key topics in 2024, continuing to drastically implement operational measures, promoting business closely following the orientation and direction of the Government and the State Bank, as well as market developments to create sustainable development in the new period. Closely following the goals in the Digital Transformation Plan of the Banking Industry to 2025, with a vision to 2030, VietinBank has implemented the Digital Transformation program for the period 2024-2028 of VietinBank called "Project X01" with 108 initiatives associated with the medium and long-term business strategy with the expectation of creating outstanding competitiveness for the Bank and bringing optimal experience to customers and employees of VietinBank. VietinBank's financial targets for 2024 are expected to be as follows: Total assets to grow by 8%-10%; Outstanding credit is implemented according to the credit growth limit approved by the State Bank and the State Bank's credit management policy orientation in each period; Mobilized capital grows in line with credit growth rate, ensuring liquidity safety indicators; Bad debt/outstanding credit ratio <1.8%; Individual pre-tax profit as approved by the competent State agency. Dividend payment ratio and dividend payment structure (cash, shares) are implemented according to the approval of the competent State agency and comply with the provisions of law; Operational safety ratios comply with the provisions of the State Bank. VietinBank always takes Safety - Efficiency - Sustainability as the development goal in all periods, on the basis of good practice of 3 operating philosophies: Customer is the center; Human development is the key; Innovation is a breakthrough. Regarding personnel work, with high consensus, the VietinBank General Meeting of Shareholders approved the personnel elected to the Board of Directors of VietinBank for the 2024-2029 term and the members of the Supervisory Board of VietinBank for the 2024-2029 term. * According to the announcement of the Financial Report for the first quarter of 2024, VietinBank has achieved positive results in terms of scale and operational efficiency. Total consolidated assets increased by 2.2% compared to the beginning of the year. Customer loans increased by 2.8% compared to the beginning of the year, in line with the general developments of the whole industry and the economy. Customer deposits increased by 1.2% compared to the beginning of the year, in line with the orientation of capital balance, liquidity and compliance with VietinBank's operational safety ratios. The bad debt ratio was controlled at 1.3%, the bad debt coverage ratio for loans was 151%.

HONG ANH

Source: https://nhandan.vn/vietinbank-len-ke-hoach-kinh-doanh-giai-doan-2024-2029-post806927.html