Home Business VIB proposes 35% dividend payment and 30% profit growth in 2023

VIB proposes 35% dividend payment and 30% profit growth in 2023

by Asia Insider

On March 15, At the Annual General Shareholders Meeting of Vietnam International Bank (HoSE: VIB), its shareholders approved its plan to pay a dividend at a rate of 35%, including cash dividends, bonus shares, and a pre-tax profit plan of VND 12,200 billion in 2023.

The shareholders of the bank also agreed to increase its charter capital to 20.36%, reaching VND 25,368 billion, and pay dividends at a maximum of 15% in cash dividends and 20% in bonus shares.

VIB aims to achieve sustainable growth targets, establish a strong governance foundation, lead in digitalization, and become a leading retail bank in terms of quality and service in Vietnam. By 2026, the bank plans to attract 10 million customers with a compound profit growth of 20%-30% between 2022 and 2026.

To achieve its business goals for 2023 and its strategy for the transition period from 2022 to 2026, VIB’s Board of Directors has set seven strategic directions. These include having a comprehensive and outstanding product suite, providing innovative and personalized solutions for customers and partners, utilizing excellent technology and digital banking, developing human resources, becoming a top brand, taking the lead in applying international standards, and having strong compliance and risk management.

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During the event, shareholders also approved the business plan for 2023, which includes an increase in total assets, outstanding loans, capital mobilization, and profit. The bank’s profit before tax is expected to increase by 15.3% to VND 12,200 billion, while total assets will increase by 25% to VND 428,500 billion. Capital mobilization is anticipated to increase by 26.2%, and the growth rate of outstanding loans may be adjusted depending on the allowable limit of the State Bank.

In addition, shareholders elected the Board of Directors and Supervisory Board for the IX term (2023 – 2027). The Board of Directors comprises five members (including one independent member), and the Supervisory Board comprises two members.

According to the report of the Board of Directors, VIB has achieved outstanding growth in terms of scale, quality, and brand value during the first six years of its ten-year strategic transformation roadmap (2017-2026). The bank’s profit has achieved an average growth rate (CAGR) of 57% per year during this period, and the effective return on equity (ROE) has exceeded 30% for many consecutive years.

Currently, VIB has the leading retail proportion in the industry, with nearly 90% of its credit portfolio, and leads the market share in many areas such as lending for house, car, and credit card purchases.

Source: Vietnam Insider

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