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Banking & Finance

Eximbank finally holds AGM

Released at: 16:24, 21/07/2015

Eximbank finally holds AGM

Meeting comes after two delays, with the bank still to elect a new Board of Management.

by Hung Nguyen

The Vietnam Export Import Commercial Joint Stock Bank (Eximbank) held its annual general meeting (AGM) on July 21 after two delays and about three months later than other banks.

The biggest concern for the bank is a change in Board of Management now that the 2010-2015 period is coming to an end. A vote on a new Board, however, was not conducted. The delay in the vote has been approved by central bank, with the bank to hold an extraordinary meeting to do so.

In the first half of the year Eximbank earned revenue of VND570 billion ($26.12 billion), reaching 57 per cent of the annual plan. Charter capital stood at VND12.35 trillion ($556.12 million).

Total assets are targeted at VND180 trillion ($8.25 billion) for this year, an increase of 12 per cent again 2014, and mobilized capital of VND126 trillion ($5.77 billion), an increase of 24 per cent, and outstanding credit VND108.75 trillion ($4.98 billion), 11 per cent higher than in 2014.

Profit before tax is to be VND1 trillion ($45.84 billion), with a dividend payout of 4.8 per cent and a Return on Equity (ROE) ratio of 5.4 per cent.

Due to the high level of provisions, as 20 per cent of its bad debt were sold to the Vietnam Asset Management Company (VAMC), profit before tax was only VND69 billion ($3.16 million), accounting for 3.8 per cent of the 2014 plan.

As at the end of 2014 its bad debt ratio was 2.46 per cent and its Capital Adequacy Ratio (CAR) 13.6 per cent.

The bank will not pay a dividend for 2014 due to the high level of provisions set for handling bad debts.

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