AsemconnectVietnam - On the morning of March 15, 2023, Vietnam International Bank (VIB) held the General Meeting of Shareholders (AGM) in Ho Chi Minh City. The dividend payment plan at the rate of 35% including cash dividends, bonus shares, and a profit before tax plan of VND12,200 billion in 2023 has been approved by the General Meeting of Shareholders.

According to the report of the Board of Directors at the General Meeting of Shareholders, in the first 6 years of the 10-year strategic transformation roadmap (2017-2026), VIB has established a solid foundation for outstanding growth in terms of scale, quality and brand value, putting the Bank in the leading group in the industry in terms of business efficiency, growth in asset size and revenue, effective cost management, and tight risk control.
VIB's profit has achieved an average growth rate (CAGR) of 57%/year during the past 6 years, the effective return on equity (ROE) has reached over 30% for many consecutive years, exceeding outperforming the average of the Top 10 listed banks.
Also according to the report of the Board of Directors, VIB is the bank with the highest percentage of retail loans in the market with 90%, and is also one of the banks with the lowest proportion of bonds in total outstanding loans in the industry accounting for 0.8% of total loans.
In 2022, the SBV ranked VIB among the highest in the industry based on assessments of capital adequacy, asset quality, governance capacity, profitability efficiency, liquidity management, and sensitivity indicators. VIB always adheres to the indicators set by the State Bank and regularly pioneers in the application of international standards, including Basel II, Basel III and IFRS.
Responding to shareholders at the meeting, Mr. Dang Khac Vy - Chairman of VIB's Board of Directors said that 2022 and 2023 will be difficult years for the real estate and corporate bond markets. In the recent update report, the total outstanding loans of corporate bonds accounted for VND1,800 billion of the total loans of the Bank of VND232,000 billion.
Real estate loans have VND3,800 billion, very small compared to other banks, real estate mainly lends to foreign companies operating in Vietnam.
VIB only has 3% of loans for bonds and real estate in total outstanding loans. As for the report of Moody's, the outstanding balance on equity is only close to 15%, while the vast majority of other banks are higher.
VIB has 90% outstanding loans in the retail banking segment, of which more than 90% of outstanding loans are secured by assets.
Housing loans accounted for 5%, business loans accounted for 17%, auto loans 18%-19%, the rest were home repair loans, card loans, mortgage loans with savings books.
Regarding VIB's business housing, unlike other banks, VIB does not provide housing loans for ongoing projects, condotels, etc., only loans for houses with pink and red books, multi-purpose loans for both business and residence. If the real estate market drops 30%-40%, the quality of VIB's collateral is safe.
VIB's General Meeting of Shareholders approved the plan to increase charter capital to VND25,368 billion, up 20.36%; paying 35% dividend, with maximum 15% cash dividend, 20% bonus shares.
VIB aims to attract 10 million customers by 2026, with a compound profit growth of 20% - 30% for the period 2022-2026.
According to the Chairman of VIB, the number of profit plans for this year has been considered based on many factors. VIB thinks that this year's profit plan is a reasonable number given VIB's operating model.
In the first months of 2023, NIM increased slightly, surpassing 4.6%. However, VIB recognized the measure that the State Bank of Vietnam introduced to reduce the operating interest rate to reduce the deposit interest rate, and at the same time must support customers to borrow capital and reduce lending interest. Therefore, VIB will bring NIM to about 4.5-4.6%.
Besides, with Bancassurance activities in 2022, there will be a slight influence due to market factors in the context of corporate bonds of other banks as well as some banks selling incorrect Bancassurance products, making reputation as well as bad. as the viewing angle towards this product is affected.
In 2022, Bancassurance and VIB will grow by 8%. VIB has balanced between selling insurance to borrowers as well as deposit customers. VIB is negotiating with Prudential to extend the contract for the next 13 years, creating practical benefits for participants buying insurance, loan insurance, and investment insurance. The bank believes that in 2023 Bancassurance activities will grow well.
In addition, VIB's General Meeting of Shareholders also approved the list of members of the Board of Directors for the IX term (2023 - 2027) with 5 members of the Board of Directors, including 1 independent member. Among the 5 new members of the Board of Directors, 4 members continued to be elected, including Mr. Dang Khac Vy, Chairman of the Board of Directors; Mr. Dang Van Son, Vice Chairman of the Board of Directors; Mr. Han Ngoc Vu member of the Board of Directors cum General Director; Mr. Do Xuan Hoang, member of VIB's Board of Directors.
The General Meeting elects 2 members of the Supervisory Board for a new term.
N.Nga
Source: VITIC/Tinnhanhchungkhoan