Many important issues discussed.
Vietnam International Bank (VIB) held its Annual General Meeting on March 27, with shareholders made privy to plans from the board of directors which include increasing total assets by 9 per cent to VND88.25 billion ($4.09 million), growth in deposit mobilization of 8 per cent to VND53 trillion ($2.46 billion), 9 per cent cash payout in dividends and a stock dividend payout rate of 12 per cent.
In addition, two important issues were discussed, namely potential plans for listing on the stock market and a potential merger.
Initial public offering
Shareholders were quite anxious to hear about progress being made in regards to launch on the stock market. However, Mr. Han Ngoc Vu, General Director of VIB, indicated that the time frame was not until at least early 2016.
Mr. Vu said that the plan to list VIB has been mentioned often in the past few years but has not been implemented yet due to the huge amount of work required in the planning process and the necessity to be thoroughly prepared. The bank also has other priorities for the immediate future, including developing its brand and products.
When Mr Vu's response was not satisfactory to many, VIB Chairman Mr. Dang Khac Vi weighed in. "Being listed on the stock market is an important issue, but I want to say that when it happens is most important," Mr. Vi said. "When a bank is listed, its business results must be sustainable, and to achieve that, VIB must continue to improve itself. Moreover, it also depends on the willingness of the shareholders. The board may make recommendations but the final decision belongs to the shareholders of VIB.”
Strategic shareholder representative Mr. Graham Putt of Commonwealth Bank of Australia (CBA) said the CBA certainly wants VIB listed. However, it also need to choose the most appropriate time.
Mr. Vi also suggested at the meeting that a merger with another bank to increase in size is on the agenda, owing to recent successful moves to restructure in the sector. However, the process is still in its infancy with the bank looking to find a transparent partner to align itself with.
"Over the years, the executive board of VIB has aimed to achieve a number of criteria in respect to transparency and has invested a lot of resources to ensure transparency. Moody's has rated VIB as having strong financial capacity. Therefore, whenever we see potential partners with transparent information, that will be the basis for any new plan to merge, as we do not want to take any risks."