BIDV raises chartered capital to VND33.5 trillion

In the capital increase plan, the Bank for Investment and Development of Vietnam will sell shares to its current investors and strategic shareholders, and pay a dividend by shares. The forthcoming share sale will lead the State ownership of the bank to fall to 86.66% from the current 95.76%.



The bank said its listing on the HCMC stock exchange early this year had set a foundation for an upcoming sale of shares to a strategic foreign investor.



At the bank’s general meeting last Friday, shareholders asked whether or not the bank was planning to merge with another credit institution, Tran Bac Ha, chairman of the bank, said since the State remains a majority stakeholder, the bank will not do that unless otherwise approved by the State.



The 2014 targets the bank set at the meeting are 13% growth in outstanding loans, profit before tax at VND6 trillion, a bad debt ratio of less than 3% and a dividend of 9% or higher.



Last year the bank sold more than VND1 trillion worth of bad debt to the Vietnam Asset Management Company and will sell  another VND2 trillion to this debt trading firm this year.



The bank last year mobilized nearly VND416.73 trillion, up 16.4% versus the previous year, and reported total outstanding loans of VND392 trillion, up 16.7% from a year earlier, and pre-tax profit of VND5.3 trillion, 12% higher than the 2013 target approved by shareholders.



Its return on asset was 0.78%, its return on equity was 13.8% and its dividend was 8.5%.