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No dividend payment in 2017, will complete the merger with HDBank in August

Thursday - 28/06/2018 21:18
On the afternoon of June 28, Petrolimex Joint Stock Commercial Bank (PG Bank) will hold its Annual General Meeting of Shareholders in 2018.
No dividend payment in 2017, will complete the merger with HDBank in August
Reported at the meeting, Bui Ngoc Bao, Chairman of the bank said that by the end of 2017, total assets of the bank reached 29,298 billion, up 18% compared to 2016, reaching 101% of the plan; total mobilization reached 25,295 billion, up 20%; Total outstanding loans reached VND21,421 billion, up 22% y / y.

By 2017, PG Bank achieved a pretax profit of VND80 billion, only reaching 54% of the plan.

Bank leaders said that the profit was lower than the plan of VND 69.7bn due to unplanned mobilization and lending, low interest margins while processing and debt recovery including VAMC was not As expected, the provisioning increase ...
As for bad debt, by the end of 2017, Bao said the bank's bad debt was VND691 billion, up VND258 billion compared to 2016. The NPL ratio was 3.23% 2.47% in 2016.

Of which, the increase in non-performing loans of retail customers was VND107 billion, which were small loans with sufficient collaterals; Bad debt of corporate customers is VND 151 billion mainly of some customers who still pay debts at PG Bank but have bad debts at other banks.

In 2017, the bank recovered VND180 billion of NPLs, provisioning debt was VND46 billion, debt collection was sold to VAMC at VND103 billion, up VND40.5 billion compared to 2016. only reached 30% of the plan.
No dividend payment in 2017

Bank leaders said that in 2017, most of the targets met and exceeded the business plan but due to provisioning for VAMC bonds more than VND383 billion (including extra provision beyond plan under requirements of the State Bank of Vietnam), the profit was not satisfactory. PG Bank expects not to pay dividends in the year.

Strongly reduce the cost of provisioning, expected profit increase of 2.3 times

By 2018, PG Bank plans to raise total deposits to VND29,989 billion, up 19% y / y and outstanding loans to VND23,992 billion, up 12% y / y.

By the end of this year, total bank assets are expected to increase 17% y / y to VND34,199 billion. Profit before tax is estimated at VND 183 billion, 2.3 times higher than that achieved in 2017.

However, it can be seen that the surge in profit will largely come from lower provisioning. This year, the bank expects to make a provision of VND33 billion against VND460 billion in 2017.

Bad debt ratio will be pulled from 3.23% in 2017 to 1.51% at the end of this year.

Complete merger with HDBank in August

As for the merger with HDBank, PG Bank said that the two banks are cooperating to submit to the SBV for approval and, at the same time, actively and promptly prepare the works for the merger handover.

In addition to concentrating resources to complete the merger handover in August 2015, PG Bank will also continue to implement normal business operations and implement business targets. in the merger plan.

As the merger will be completed in the next few months, PG Bank's Board of Management will not propose the new Board of Directors and Supervisory Board to hold the current Board until the merger with HDBank is completed.

Also at the meeting, Bui Ngoc Bao, Chairman of the bank, said that the major shareholders of both PG Bank and HDBank are actively working out a specific program to conduct the merger.

"Our ultimate goal is to help shareholders of both banks see great benefits, as a large new bank. The consolidation will ensure the employment security, promote the new bank development, "said the bank president.

Source: Bizlive.vn

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