Mr. Cao Sy Kiem leaving his position for personal reasons, bank's shareholders' meeting told.
At the shareholders’ meeting of the DongA Joint Stock Commercial Bank (DongA Bank), Mr. Cao Sy Kiem officially resigned his position as Chairman of the Board of Directors for personal reasons, just over a year after taking on the role.
Mr. Kiem, former Governor of the State Bank of Vietnam, was elected Chairman on April 26, 2014. In March 2012 he became a member of the independent Board of Directors at the bank.
The shareholders’ meeting was told of the bank’s poor business results. In 2014 profit before tax was VND35 billion ($1.16 million), down 96 per cent compared to 2013. Shareholders will therefore not be receiving any dividends this year. For 2015 the bank has targeted profit before tax of VND200 billion ($9.2 million), six-times higher than in 2014. Credit growth was 1 per cent and bad debts stood at 3.7 per cent last year.
The bank will also approve the establishment of a new Board of Directors and Supervisory Board at the meeting, for the 2015-2020 term. The number of members of the Board of Directors is expected to be eight, with three members on the Supervisory Board. The actual make-up of the two Boards will not be determined until the arrival of new investors.
DongA Bank previously gained shareholder approval to sell 100 million shares in a new issuance to confectionery maker the Kinh Do Corp. (KIDO Corp ), to increase its charter capital from VND5 trillion ($229.2 million) to VND6 trillion ($275.1 million). If the sale proceeds KIDO will become the bank’s largest shareholder, with approximately 17 per cent.