It also aims to mobilise VND160 trillion (US$6.9 billion) from individuals, businesses and economic organisations in the market, instead of VND170 trillion (US$7.3 billion). The planned outstanding loans are also cut down from VND123.5 trillion (US$5.3 billion) to about VND117.5 trillion (US$5 billion).

The bank sets the minimum rate of dividend payment at 10%, down from 12%, Thang noted.

Meanwhile, some other targets like charter capital (over VND9.87 trillion or US$425.7 million) and bad debt rate (under 1.5%) are kept unchanged.

He explained that the total asset, capital mobilisation and outstanding loan targets are reduced to match this year’s credit room set by the central bank. LienVietPostBank initially planned to achieve a credit growth rate of 20%, but the central bank only permitted 14% growth.

It had to revise the profit goal as in 2018 and 2019, the strategy is to focus on infrastructure development, particularly expanding the network of branches. This will raise expenses on construction, technological infrastructure and personnel, which in turn will decrease profit.

The lower dividend payment rate is to match the downgraded pre-tax profit target of VND1.2 trillion, Thang said, adding that the 10% rate still meets investors’ expectation and is a good rate in the finance-banking sector.