VPBank announced important business plans and targets for 2022 at AGM

Written by VPBank

HANOI, VIETNAM - Media OutReach - 29 April 2022-Vietnam Prosperity Joint Stock Commercial Bank (VPBank) successfully held its Annual General Meeting (AGM) in Hanoi today, announcing various important business plans and targets for 2022, as part of an attempt to prepare for the bank's next phase of growth in the future.

At the AGM, VPBank was given a go-ahead by its shareholders to issue/offer its shares to staff under the ESOP scheme, and at the same time carry out the plan to further strengthen its capital via the share issuance from equity and the private placement with a strategic investor.

30 million of treasury stocks, accordingly, will be available for the bank staff at the preferential price of VND10,000 a share. Meanwhile, the bank decided to distribute 50% stock dividend to existing shareholders, using the bank's undistributed profit after tax and reserve. The total value of the share issuance will increase the chartered capital from VND45.06 trillion to VND67.43 trillion.

In addition, the private placement worth up to 15% of the chartered capital to strategic foreign investor, once completed, will eventually bolster the bank's chartered capital to VND79.33 trillion. The bank will accordingly lift its foreign ownership limit to 30% of the chartered capital to accommodate the private placement to the foreign investor accordingly. The proceeds obtained from the share issuance will be utilised to enhance VPBank's financial and management capabilities, in order to extend the operation scale of the bank to serve growing credit demand.

Within the scope of the AGM, VPBank was also permitted to go through with the acquisition of OPES Insurance Company to expand its business lines to non-life and health insurance, to pair with its current life insurance business collaborated with AIA Vietnam. On the other hand, the bank will contribute VND20 trillion towards its securities arm of ASC – a subsidiary obtained earlier in the year, to tap into the investment banking and wealth management segments.

Aiming high for the year, VPBank set its business targets for 2022 with total assets growing at 27 per cent to VND697.4 trillion, credit growth at 35% to VND518.4 trillion and profit before tax bolstering by 107% to approximately VND29.7 trillion.

Last year, VPBank recorded a consolidated profit before tax of VND14.36 trillion, an increase of 10.3% year-on-year. Its total assets grew by 30.6 per cent to VND547.4 trillion while credit to customer jumped 18.9% to VND384.03 trillion, accomplishing 111% and 102% of the annual target, respectively.

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