VIB to raise chartered capital to $253 million in 2016

April 14, 2016 | 17:30

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Vietnam International Bank (VIB) is going to raise its chartered capital to VND5.64 trillion ($253 million) this year, according to the bank’s recently released shareholders’ meeting materials.

VIB’s shareholders’ meeting is going to be held on April 28 in Hanoi. At the meeting the shareholders are going to vote on a new board of management and the internal audit and control committee for the 2016-2019 period.

The shareholders are also going to vote on the paying of cash dividends of VND850 (3.8 US cent) per share and the raising of chartered capital from VND4.85 trillion ($217.5 million) to VND5.64 trillion ($253 million) through issuing share dividends of 16.5 per cent. Last year, VIB paid a VND900 (4 UScent) cash dividend and 14 per cent share dividend.

In 2015 the bank reported pretax profit of VND655 billion ($29.5 million). Credit growth was 24.9 per cent. Total assets at end-2015 were 5 per cent higher compared to end 2014. Bad debt ratio was 2.07 per cent.

In 2016 VIB expects pretax profit of VND675 billion ($30 million) and credit growth of 25 per cent.

VIB’s capital adequacy ratio (CAR) often stands at 17-18 per cent. Among the 10 banks chosen to pilot Basel II, VIB has the highest CAR calculated according to Basel II standards with 13 per cent compared to the required 8 per cent.

In 2015 Commonwealth Bank of Australia (CBA) continued to be a strategic partner of VIB, holding a 20 per cent share. VIB also signed exclusive partnership agreements, such as the bancassurance contract with Prudential Vietnam, and the agreement to provide financing to buyers of BMW cars. In March, VIB was awarded the title “Best Trade Partner Bank in East Asia and Pacific” under the global trade finance programme by the International Finance Corporation.

By By Hong Anh

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