Vietcombank assets shrivel during first quarter

Wednesday, April 23, 2008
Vietcombank’s assets shrank slightly during the first quarter of the year, according to business reports issued on April 22 in advance of Saturday’s general shareholders meeting.
As of March 31, total assets of the Hanoi-based bank had fallen to 195.58 trillion VND (12.22 billion USD), down 0.3% from the same day last year.
This was the first time Vietcombank has witnessed a decline in total assets in the past 45 years, said bank chairman Nguyen Hoa Binh in a press conference on April 22 announcing the results.
”The situation has been affected by slower growth in global economies and rapid changes in the nation’s monetary market,” Binh said.
Vietcombank has targeted total assets of 211.08 trillion VND ( 13.19 billion USD) by the end of this year, up 7.7% from last year’s total. The bank projects total assets of 30 billion USD by 2015.
The bank’s outstanding loans by the end of March were up 10.1 percent to 105.6 trillion VND (6.6 billion USD), of which non-performing loans accounted for 1.4%. The bank targets this figure to gain 29.2% through the end of the year, to reach 123.91 trillion VND (7.74 billion USD) by December 31.
Profits in 2008 are projected to increase 11.68 over 2007, to 3.38 trillion VND (211.43 million USD).
Vietcombank currently has 12 trillion VND (750 million USD) in charter capital. Based on its approved equitisation plan, that figure will be increased to 15 trillion VND (937.5 million USD).
The bank has plans to issue 3 trillion VND (187 million USD) in shares to strategic investors this year, but is still in the process of negotiating with potential partners. None of these possible strategic partners has yet been named.
Binh on April 22 re-affirmed that Vietcombank shares would be listed on the HCM City Stock Exchange sometime this year but declined to release further details.
Vietcombank, newly equitised in 2007, will hold its first-ever general shareholders meeting on Saturday at the National Convention Centre in Hanoi .
The bank has over 15,000 shareholders eligible to attend.
The meeting will discuss personnel issues regarding the seven-member executive board and five-member supervisory board and the bank’s 2008 business plan.
Individuals or institutional shareholders representing ownership of at least 5% of equity in the bank are eligible to propose issues for discussion in the shareholders meeting. (VNA)