Bank sees falling profit before tax in 2014.
In 2014 the total assets of Kienlong Bank increased 8.1 per cent to reach VND23.1 trillion ($1.06 billion), its shareholder's meeting on April 24 was told. Capital mobilized from economic institutions and individuals reached VND16.57 trillion ($7.67 billion), an increase of 24.56 per cent against 2013, outstanding credit rose 11.52 per cent to VND13.52 trillion ($6.26 billion), and non-performing loans were managed at 1.95 per cent. However, profit before tax fell 40.59 per cent to VND233.71 billion ($10.82 million). The dividend payout in 2014 will be 5 per cent in cash.
Explaining the profit decline compared to 2013. Mr. Vo Quoc Thang, Chairman of Kienlongbank, said that last year it shared the difficulties facing customers such as small and medium-sized enterprises (SMEs) and farmers through waiving interest charges or cutting interest rates to help them save at total of VND120 billion ($5.5.million), and set risk provisions of VND136 billion ($6.29 million) and provisions for special bonds of the Vietnam Assets Management Company (VAMC) of VND36 billion ($1.66 million).
In 2015 it targets to increase total assets by 13.27 per cent to VND26.17 trillion ($1.21 billion), with total mobilized capital to be VND22.18 trillion ($1.02 billion), an increase of 14.61 per cent. Outstanding credit is targeted at VND16.2 trillion ($750.22 million), an increase of 19.77 per cent against last year. Profit before tax is to be VND388 billion ($17.96 million), 66.02 per cent higher, and non-performing loans to be less than 2.5 per cent, with a dividend pay out of 8 per cent.