Also at the meeting, VietinBank submitted 2 profit distribution plans for 2020. Option 1, if VietinBank has not completed the capital increase from share dividends from profit after tax, deducted funds in 2017, 2018 and the remaining profit after tax, fund deduction and cash dividend in 2019, charter capital when implementing the dividend is over 37.00 billion.
VietinBank will pay 5% cash dividends in 2020, equivalent to the scale of VND 1,861 billion, and at the same time pay dividends by shares at the rate of 17.7%, equivalent to VND 6,600 billion. According to this dividend payment plan, the amount is equivalent to VND 8,461 billion.
Option 2, at the time of dividend payment, if VietinBank has completed the above capital increase, its charter capital for dividend payment is expected to be more than VND 48,000 billion. VietinBank will pay 5% cash dividend (amount over 2,400 billion dong) and stock ratio 12.6% (amount over 6,000 billion dong).
With option 2, the amount will be equivalent to VND 8,400 billion. According to calculations, if the dividend is divided as in plan 1, the remaining bank profit after tax, deduction of funds and dividends in 2020 is more than 17,600 billion VND; also under plan 2, the remaining profit is over 22,200 billion dong.
In 2021, VietinBank sets main targets in business activities, including: credit balance growth of 7.5%; capital mobilized from economic organizations and individuals grew 8-12%; NPL / credit balance is controlled below 1.5%.
VietinBank also sets a target of 16,800 billion VND in profit before tax in 2021, only slightly increased compared to 2020 and profits are adjusted according to the approval of the State Bank. In order to well implement the planned objectives, VietinBank will promote strong growth in business activities, along with strong improvement of quality and efficiency; continue to strongly transform the growth model, strengthen the effective value chain connection between segments, between parent banks and subsidiaries, develop comprehensive financial solutions for customers / groups of customers associated with the needs of customers and the market; attaching VietinBank’s growth to key economic sectors, key economic areas of the country.
Sharing about the action strategy, potentials and prospects of VietinBank in the coming years, Mr. Le Duc Tho, Chairman of VietinBank’s Board of Directors, said that the business results in 2020 are the result of a process of outstanding efforts; proactively restructure operations successfully under the restructuring plan for the period 2016 – 2020, the medium-term plan of 2018 – 2020 and the growth model transformation associated with efficiency improvement.
Thereby, it shows the great effort and potential of the VietinBank system, creating a solid premise for VietinBank to build and organize the successful implementation of the 10-year long-term development strategy of 2021 – 2030 and a vision to 2045.
Source: sggp.org.vn – Translated by fintel.vn