Banking Sector Holds Annual General Meetings: HDBank, Sacombank, and Eximbank Update Shareholders
On April 26th, three major banks in Ho Chi Minh City – Sacombank, HDBank, and Eximbank – convened their annual general meetings (AGM) for shareholders. Kienlongbank also held its AGM in Hanoi.
HDBank’s AGM took place in Ho Chi Minh City’s High-Tech Park, a recently inaugurated hub hosting significant technology-related events.
As in previous years, HDBank’s AGM is expected to garner immense attention from investors. HDBank will present its plans for sustainable growth, digital transformation, and ESG initiatives. Shareholders will also consider a proposed dividend payout ratio of up to 30%, the highest in the banking sector to date (excluding Techcombank’s 100% stock dividend after a 10-year hiatus).
HDBank stands out as one of the few banks in the system that has maintained a consistent record of high annual dividend payments.
According to its 2024 business plan, HDBank is targeting pre-tax profits of VND 15,852 billion, a 21.8% increase over 2023. The bank projects a ROE of 24.6% and a low non-performing loan (NPL) ratio of 1.5%, among the best in the industry. By the end of 2024, HDBank’s total assets are projected to exceed VND 700 trillion, a 16% increase. Total deposits are estimated to reach over VND 624 trillion, a 16% growth. Total outstanding loans are expected to surpass VND 438 trillion, an increase of approximately 31% compared to 2023, in line with the credit growth target set by the State Bank of Vietnam.
Sacombank also held its AGM on the same day, expecting an attendance of around 2,000 shareholders.
Shareholders attending Sacombank’s 2024 AGM will receive a tea set as a gift.
High on the agenda for Sacombank is the restructuring and dividend payment. In the two previous AGMs, the Chairman expressed a strong desire to pay dividends to shareholders but needed the approval of the State Bank of Vietnam. However, as of this year, the dividend payment has not yet materialized.
Sacombank aims to increase its total assets by around 10% to VND 724,000 billion this year. Total mobilized capital is estimated to grow by approximately 10% to VND 636,600 billion. Total outstanding loans are projected to rise by 11% to VND 535,800 billion. The Board of Directors will adjust the growth targets for deposits and loans in line with the credit growth limit allocated by the State Bank of Vietnam. The bank is also targeting a pre-tax profit of VND 10,600 billion in 2024. The NPL ratio is targeted to be kept below 2%.
Eximbank has navigated a challenging period due to internal conflicts among its shareholders. However, 2023 seems to have brought a turn for the better, and the bank’s shareholders are approaching 2024 with optimism. Eximbank plans to achieve a pre-tax profit of VND 5,180 billion in 2024, a substantial 90.5% increase compared to its 2023 performance. Total assets are expected to grow by 11% to VND 223,500 billion, while mobilized capital is projected to increase by 10.5% to VND 175,000 billion.
