According to financial statements of the fourth quarter of 2020, Viet Capital Commercial Joint Stock Bank (Viet Capital Bank)’s total pre-tax for the whole year 2020 was VND 200 billion, up 26.6% from the previous year, completing the plan approved at the shareholders’ meeting in August 2020.
The main contributions to the completion of the profit plan came from the increased asset size and credit growth, income from debt settlement, and strict management of the bank's operating expenses.
Previously, the bank reported a pre-tax profit for the third quarter alone of VND 76 billion, more than double the same period in 2019. The pre-tax profit for the first nine months of the year was VND 138 billion, which increased by 63% year over year, completing 69% of the year’s plan.
As of December 31st, 2020, the bank's total assets increased by 18% compared to 2019. The capital mobilization from economic organizations and residents reached VND 47 trillion and the outstanding balance was more than VND 40 trillion, up 24% and 16% compared to 2019, respectively.
The retail activities maintained its growth with non-interest revenue accounting for 22% of total revenue, increased by 58% compared to the last year, of which the net interest income from services rose by more than 100%.
Regarding loan quality, the non-performing loans (NPL) ratio was 2.7%, not exceed the target of 3% set by the State Bank of Vietnam (SBV). Compared to 2019, the total operating expenses increased by only 1%.
Viet Capital Bank recently announced the issuance of shares to the public to increase capital.
Accordingly, the bank plans to offer more than 35 million shares to existing shareholders at a ratio of 9:1. A shareholder owning nine shares will be entitled to buy one additional share. The offering price is VND 10,000 VND per share, ad the total offering value reached more than VND 352 billion. All proceeds from the issuance of the shares are set to be used to supplement the bank's capital and improve its competitiveness.
According to the target, Viet Capital Bank expects to increase its charter capital by more than VND 906 billion in 2020 and the first quarter of 2021, through two phases.
In Phase I, the capital is expected to increase by a maximum of VND 502.3 billion. The issuance of 35 million abovementioned belongs to Phase I. At the same time, the bank will issue 15 million ESOP (Employee Stock Ownership Plan) shares with the value of approximately VND 150 billion. The expected maximum charter capital after Phase I is VND 3,673 billion.
In Phase II, the bank is set to issue shares to increase the capital from owners' equity at the expected ratio of 11%, equivalent to VND 404 billion. After the two phases, the charter capital of Viet Capital Bank will reach more than VND 4,077 billion, compared to the current VND 3,171 billion.
Compiled by VietnamCredit
