Eximbank to set $70.5-million profit target despite scandals

April 16, 2018 | 16:44
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At the annual general shareholders’ meeting expected to take place on April 27, Eximbank will recommend the target of VND1.6 trillion ($70.5 million) in net profit, one and a half times higher than the 2017 performance.
eximbank to set 705 million profit target despite scandals
Despite recent scandals, Eximbank sets an ambitious profit target

Accordingly, total assets are planned to be raised by 19 per cent to VND178 trillion ($7.84 billion) by the end of this year. Capital mobilisation is expected to increase by VND30.5 trillion ($1.34 billion), equivalent to 26 per cent, while outstanding credit is only expected to raise by 12 per cent.

This is the second year Eximbank deploys its “New Eximbank” project to restructure its operations. The bank plans to earn VND1.6 trillion ($70.5 million) in net profit, which is 50 per cent higher than last year’s performance.

At this annual general shareholders’ meeting, Eximbank will elect two additional members to its board of management for the term 2015-2020. The bank has received four nominations for the posts.

With the 2017 performance, Eximbank has officially overcome its accumulated losses and EIB stock is not under supervision anymore. The VND834.56-billion ($36.8-million) accumulated loss in the consolidated financial statement at the end of 2014 has been offset by the profit of the next three years. However, the remaining profit from 2017 was too little to pay dividends this year.

Eximbank still proposed VND6.5 billion ($0.3 million) as remuneration for the board of supervisors in 2017 and kept this figure this year.

The remuneration for the board of management was also suggested at 2 per cent of the total 2018 profit, which is targeted at $70.5 million, or at least VND15 billion ($0.66 million). However, Eximbank did not propose remuneration for the board of management in 2017.

Last year, several embezzlement cases occurred at Eximbank. VND245 billion ($10.8 million) of a customer named Chu Thi Binh has been appropriated by a deputy director of an Eximbank branch in Ho Chi Minh City. The two sides have yet to come to a mutually acceptable solution.

Additionally, 16 officers of the bank in Vinh city have been prosecuted for involvement in the “abusing trust to appropriate property” the police charged Nguyen Thi Lam with, who has appropriated more than VND50 billion ($2.2 million) from various customers between 2012 and 2016.

These two cases have impacted the bank’s brand. That is why Eximbank will set the target of capital mobilisation growth by 26 per cent, while the target of credit growth is low.

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