LienVietPostBank to increase to $523 million of charter capital

LienVietPostBank is expected to increase its charter capital to VND12.036 trillion ($523 million)

Specifically, LienVietPostBank has been approved to increase its charter capital by a maximum of nearly VND1.29 trillion ($56.1 million) through the form of stock issuance to pay dividends.

According to the plan approved by the annual shareholders' general meeting, LienVietPostBank will issue nearly 129 million shares, equivalent to VND1.29 trillion to pay dividends in 2020 at the rate of 12 per cent. Thereby, the bank's charter capital is expected to increase to VND12.036 trillion ($523 million) after the issuance.

In addition, LienVietPostBank also plans to privately issue 66.7 million shares to foreign investors, 265 million shares for existing shareholders and 35 million shares under the employee stock ownership plan (ESOP).

In 2021, LienVietPostBank aims to achieve the pre-tax profit of VND3.2 trillion ($139.13 million), up 32 per cent compared to 2020. Total assets are expected at the end of the year to reach VND282.6 trillion ($12.3 billion), up 16.6 per cent compared to the beginning.

Credit card balance in the market for economic organisations and residents is planned to increase by 20 per cent to VND213 trillion ($9.26 billion), capital mobilisation increased 15 per cent to VND237.8 trillion ($10.34 billion). With this business plan, LienVietPostBank is expected to pay a dividend rate of 10 per cent in 2021.

At the end of the first quarter, LienVietPostBank reported a pre-tax profit of VND1.1 trillion (47.83 million), up 84.2 per cent over the same period last year thanks to the growth momentum from lending, services, and foreign exchange.

As of March 31, LienVietPostBank's total assets reached VND245.2 trillion ($10.66 billion), up 1.2 per cent, of which customer loans increased by 3.5 per cent to VND182.7 trillion ($7.94 billion). Deposits from customers grew modestly by 0.9 per cent compared to the end of last year.

The bank's bad debts increased slightly to VND2.6 trillion ($113 million), the bad debt ratio remained unchanged at 1.42 per cent. The bank no longer has bad debts at Vietnam Asset Management Company (VAMC).

On June 23, Thaiholdings JSC bought 20 million LPB shares raising its ownership to 1.86 per cent. The transaction was made after the company sold all of its shares in the bank (719,400 shares) on June 16. It is estimated that the amount of money this company has to spend to make the transaction is more than VND570 billion ($24.8 million).

LPB shares closed the June 24 session at VND29,450 ($1.28).