AsemconnectVietnam - On the morning of April 21, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank - Code: CTG) held a General Meeting of Shareholders in 2023 with many important contents presented to shareholders. In which, it is noteworthy that the charter capital increased by nearly VND12,330 billion, bringing the total capital to VND60,387 billion or over VND66,000 billion.

Responding to shareholders' questions about the business results of the first quarter of 2023, Mr. Tran Minh Binh, Chairman of the Board of Directors of VietinBank said that by the end of the first quarter, total assets increased by 9%, reaching more than VND1.6 million billion. Credit growth of 4.6% is a great effort while the credit growth of the whole industry is only 2%.
“VietinBank is one of the banks with the best credit growth. The bank's focused customer groups include SME, FDI, and large state-owned enterprises," said Mr. Minh Binh.
Also according to the Chairman of VietinBank, the capital growth is appropriate, increasing not much but ensuring liquidity. Besides, interest rates not only did not increase but also actively decreased. At the same time, adjust the capital structure; increase the proportion of short-term capital with low cost.
Mr. Minh Binh said: "Because the data is not official, we have not announced the details, but in general, VietinBank's Q1 results have met and exceeded the plan, the efficiency increased compared to before."
Also related to the business results of the first quarter of 2023, Mr. Tran Van Tan, member of the Board of Directors of VietinBank added: "As of March 31, 2023, the outstanding credit balance (both loans to customers and corporate bonds) ) increased by 4.6%. In which, loans increased by nearly 28,091 billion dong, up 4.61%; corporate bonds fell 1.43%. VietinBank credit room granted in 2022 is 12.47% and 8.7% for the first period of 2023.
Responding to questions from shareholders about Bancassurance activities, Mr. Nguyen Hoang Dung, Deputy General Director in charge of operations shared, 2022 is a pivotal year in bancassurance activities. For the life segment, which is the first year of cooperation with Manulife, and for the non-life segment, VietinBank Insurance Company (VBI) has consolidated senior personnel as well as adjusted the method of operation.
“At the end of 2022, VietinBank ranked 9th out of 25 in terms of cross-selling insurance among banks. The commission gained from the life segment is VND418 billion, and the non-life segment is VND416 billion, contributing 26% to retail fees, "said Dung.
According to Mr. Dung, in the first quarter alone, the situation was difficult, the total fee collection was 263 billion dong, ranking 5th out of 25 banks, of which the non-life segment was VND60 billion.
In 2023, VietinBank sets a rather challenging growth target for the insurance segment with a target of VND4,080 billion in premium revenue, up 30%, and VND809 billion in insurance premiums from Manulife, of which life through Manulife 51% increase.
“VietinBank identifies bancas as a product for the purpose of serving customers, so we are extremely strict in standardizing business processes and training sales staff, and through the internal control apparatus to control and evaluate whether the consultants comply with ethical standards or not. Accordingly, from 2022 to now, we have not received any negative feedback from customers, press agencies or supervisory agencies in this field, "emphasized Mr. Dung.
Mr. Dung added that the Bank will sell combos, not individual sales, so that customers can consider the benefits of thoroughly understanding the product and the benefits they can achieve.
Reportedly, VietinBank aims to increase its total assets by 5-10% compared to the beginning of the year. Credit balance increased according to the limit assigned by the State Bank (SBV) in each period. Mobilized capital grew in line with credit growth, ensuring liquidity safety indicators. The ratio of bad debt/credit balance is controlled below 1.8%.
Individual pre-tax profits as approved by competent State agencies. Dividend payment ratio and payment structure (cash, shares) comply with the approval of the State Agency. The safety ratios comply with the regulations of the State Bank.
Information at the meeting said that VietinBank's pre-tax profit in 2022 reached VND21,113 billion. Net profit from other activities of the bank increased sharply during the year mainly due to speeding up the progress of debt settlement and recovery.
Notably, in 2022, the bank continued to sharply increase risk provision expenses by VND5,781 billion, up 31.5% over the previous year. As of December 31, 2022, VietinBank's total assets increased by 18.1% to VND1.8 million billion. Loans to customers increased by 12.7% to more than VND1.27 million billion. Customer deposits increased by 7.5% to nearly VND1.25 million billion.
The plan to increase charter capital by nearly VND12,330 billion from the issuance of dividends to pay for shares from the remaining profit in 2021 and the remaining profit accumulated until the end of 2016. In case of not completed, increase charter capital from the remaining profit in 2020, the charter capital increased from VND48,057 billion to VND60,387 billion (up 25.6% compared to pre-issuance). In case the charter capital increase from the remaining profit in 2020 has not been completed, the charter capital will increase from VND53,700 billion to VND66,030 billion, an increase of 22.9% compared to before the issuance.
"Increasing capital is the basis for VietinBank to improve its financial capacity, position and competitiveness, ensuring it is consistent with the bank's operational scale," said VietinBank's leader.
Regarding the distribution of profits in 2022, VietinBank said that with a separate profit after tax of VND16,379 billion, the Bank will deduct 5% for the charter capital supplement fund, 10% for the financial reserve fund and more than VND2,300 billion for bonus and welfare fund. After deducting the compulsory funds, the remaining profit of VND11,521 billion will be used to pay stock dividends as approved by the competent State agency.
The Bank also approved the dismissal and election of an additional member of the Board of Directors who is the representative of foreign shareholders of MUFG; listed the bonds issued to the public in 2023 of VietinBank on the Hanoi Stock Exchange (HNX) after the end of the offering.
N.Nga
Source: VITIC/Tinnhanhchungkhoan