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Banking & Finance

ACB holds 2015 AGM

Released at: 09:09, 24/04/2015

ACB holds 2015 AGM

Shareholders hear of solid 2014 and plans for establishing or purchasing a finance company.

by Hung Khanh

The annual general meeting of the Asia Commercial Bank (ACB) was held on April 22.

A report presented by the Board of Management showed that in 2014 total assets increased 8 per cent, credit 9 per cent, and capital mobilization 12 per cent, compared with 2013. Its capital adequacy ratio was 14.1 per cent, risk provisions increased 14 per cent, and its non-performing loan ratio was 2.2 per cent.

Profit before tax reached VND1.21 trillion ($56.07 million), an increase of 17 per cent against 2013 and 2 per cent higher than planned. ACB's quick ratio was 22 per cent, the ratio of short term capital to medium and long-term lending 24 per cent, and its loan-to-deposit ratio 75 per cent.

Its 2015 targets include total assets, deposit, and loans all increasing by 13 per cent, non-performing loan to be managed to below 3 per cent, and profit before tax to be VND1.31 trillion ($60.70 million).

Regarding dividends, after provisions ACB had VND773 billion ($35.82) in profits plus retained earnings from previous years, less VND664 billion ($30.76 million) in Treasury stocks, making more than VND802 billion ($37.16 million) available for dividends. It therefore decided on 7 per cent, in cash (as planned for 2014), equivalent to VND700 ($0.03) per share.

ACB has paid the highest dividend this year among banks headquartered in Ho Chi Minh City.

Opening or acquiring a finance company

The Board of Management proposed to shareholders at the AGM plans to open or acquire a finance company, of which charter capital must be a minimum of VND500 billion ($23.17 billion).

A bank representative said that, in the near future, the State Bank of Vietnam may issue official documents terminating some of its banking activities, such as consumer credit, finance leasing, and factoring, and give them to a finance company. In order to prepare for any such change, ACB needs to open a finance company that can conduct these activities.

According to the plan for opening a finance company, the ACB Leasing Co., Ltd will join with the finance company by way of investment or merger. ACB Leasing has charter capital of VND200 billion ($9.26 million), so ACB must come up with an additional VND300 billion ($13.90 million).

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