Dividend of 10% to be paid in cash and shares
In 2023, Eximbank reported an after-tax profit of VND 2.146 billion. After deducting funds, Eximbank recorded VND 1.949 billion in retained earnings as of December 31, 2023. After deducting funds for bonuses and welfare, the bank had VND 1.740 billion left to distribute as a 10% dividend to shareholders. Of this amount, 7% will be distributed in the form of shares (VND 1.219 billion) and 3% in cash (over VND 522 billion).
After the dividend distribution, the bank will have about VND 59 billion in retained earnings.
Regarding the stock dividend, Eximbank plans to issue an additional 121.86 million shares, representing a ratio of 7% (shareholders owning 100 shares will receive a maximum of 7 new shares).
The source of capital for this issuance will be the retained earnings accumulated up to 2023 after deducting funds. If successful, Eximbank’s charter capital will increase from VND 17,470 billion to a maximum of VND 18,688 billion.
The additional capital will be used for business activities such as investing in infrastructure, technology, building a new head office, expanding its network, and investing in fixed assets. The implementation period is expected to be in 2024.
Source: VietstockFinance
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In 2023, Eximbank distributed stock dividends twice, with ratios of 20% and 18%. The bank first distributed a stock dividend in February 2023 from retained earnings for the years 2017, 2018, 2019, 2020, and 2021.
Pre-tax profit target for 2024 set at VND 5,180 billion, an increase of 90%
With the additional capital, Eximbank aims for a pre-tax profit of VND 5,180 billion in 2024, an increase of 90% compared to the results in 2023. By the end of 2024, the bank’s total assets are projected to reach VND 223,500 billion, an increase of 11% compared to the beginning of the year. Capital mobilization and outstanding loans are expected to reach VND 175,000 billion and VND 161,000 billion, respectively, representing increases of 10.5% and 14.6%. The bad debt ratio is expected to be controlled at 1.8%.
 Source: VietstockFinance
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Relocation of headquarters, replacement of Board of Directors member
At the upcoming Annual General Meeting of Shareholders (AGM), Eximbank will also seek approval from shareholders regarding the relocation of its head office. Eximbank currently rents the head office at Vincom Center Building, 7 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City, since 2011.
After 13 years of operation, some technical and physical systems have deteriorated, hindering brand image promotion and not commensurate with the bank’s position.
In line with the plan to invest in building a head office at 7 Le Thi Hong Gam, District 1, Ho Chi Minh City, remains a top priority to fully exploit the potential and value of this land. The project is currently seeking approval from the city’s leaders for local planning adjustments in line with changes in government policies on planning and construction.
While waiting for the construction of the head office at 7 Le Thi Hong Gam, Eximbank needs to lease another office building as its head office.
After a survey, the Board of Directors identified the office building (Fideco Center) at 28 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City as meeting Eximbank’s requirements and will propose to the AGM the relocation of the head office to this location.
The Board of Directors will also propose to the AGM the dismissal of Ms. Le Thi Mai Loan as a member of the Board of Directors. Ms. Loan previously resigned from the position for personal reasons on January 31, 2024. She was elected to the Board of Directors at Eximbank’s Extraordinary General Meeting of Shareholders on February 14, 2023.
Eximbank will also elect an additional member to the Board of Directors for the 7th term (2020-2025) from the list of candidates approved by the State Bank of Vietnam. Eximbank has not yet disclosed the specific personnel information.
Eximbank’s 2024 Annual General Meeting of Shareholders is scheduled to be held in Ho Chi Minh City on April 26.
