Target of increasing total assets by 10% and profit by 43% in 2024
With a high level of consensus, the General Meeting of Shareholders has approved the business plan for 2024 with total assets of VND 54,500 billion and pre-tax profit of VND 585 billion, increasing by 10% and 43% respectively compared to 2023. This target reflects the efforts and determination of EVNFinance in ensuring benefits for customers and shareholders in the context of numerous challenges in the projected 2024 economy.
The General Meeting also approved important content such as the profit distribution plan for 2023; the plan to pay dividends in the form of shares from the 2023 profits and the plan to issue shares to employees to increase charter capital; Change the maximum foreign ownership ratio; The plan to restructure linked to bad debt resolution in the period of 2021-2025 and the amendment of the Charter and some regulations of the Company.
Another notable content approved by the General Meeting is the selection of the EVNFinance development strategy, which integrates sustainable factors (Environment – Society – Governance, abbreviated as ESG) into business operations. This means that EVNFinance seeks to balance economic development with environmental and social goals, aiming to become a responsible financial company.
Accordingly, EVNFinance will focus on sustainable development management; sustainable development risk management; contributing to society, the community, and the environment through responsible business products.
EVNFinance will remain committed to two important goals: green financial development by financing clean energy projects, renewable energy, and using digital technology as a platform to develop financial products that provide engaging experiences for customers.
It is known that the development of service products on the digital platform is highly effective and increasingly contributes positively to EVNFinance’s business results. With leading partners such as MoMo, Viettel, EVNFinance’s disbursement scale for these products in 2023 increased by 43% compared to the previous year, and it is predicted to have positive growth in the coming period.
Sustainable growth in challenges
In 2023, EVNFinance was one of the few financial companies to achieve positive profits in the volatile consumer credit market. EVNFinance’s total assets reached VND 49,221 billion, an increase of 17% compared to 2022; pre-tax profit reached VND 409.3 billion.
The safety indicators continued to be maintained with a bad debt ratio of 1.08%, much lower than the stipulated level of below 3% by the State Bank. The capital adequacy ratio CAR reached 18.29%, higher than the minimum requirement of 9%. At the same time, EVNFinance’s cost management has been increasingly improved when the cost-to-income ratio CIR in 2023 reached 27.16%, lower by 5% compared to 28.6% in 2022.
Also in 2023, EVNFinance successfully achieved the important goal of increasing charter capital to VND 7,042 billion (equivalent to a 100% increase) and recorded a surplus of share capital for the first time, reaching VND 350.5 billion. The increase in charter capital and the surplus of share capital helped EVNFinance to increase proactive use of capital, improve financial ratios and especially the CAR capital adequacy ratio.
In order to strengthen financial and management capacity, EVNFinance has been and is expanding cooperation with financial investors and foreign investors that are suitable for the company’s activities and management.
These conditions have helped EVNFinance receive a B2 – Stable Outlook rating by Moody’s for the third consecutive year in 2023, based on EVNFinance’s improvement in capital and liquidity, which has significantly improved asset quality.
