An Binh Commercial Joint Stock Bank (ABBank) has released the documents for its 2020 Annual general Meeting (AGM) which is scheduled to be held on June 12th in Hanoi.
In 2019, the bank attained an after-tax profit of nearly 967 billion dong, after provisioning for funds, the remaining profit was 775 billion dong. In addition, the bank also has nearly 628 billion dong of profit retained from the previous years, raising the total undistributed profit to 1.403 trillion dong.
However, ABBank’s Board of directors (BOD) said that since retaining profit is to accumulate capital, enhance financial capacity, meet the regulations of the SBV, and serve the development needs of the bank in the near future, the BOD proposed shareholders to keep all remaining profits to increase chatter capital in the near future, which means that there is no dividend for the year 2019.
Regarding the business plan in 2020, ABBank aims to increase total assets to nearly 111 trillion dong, equivalent to an increase of 8.431 trillion dong or 8.2 percent against 2019. The bank also targets an outstanding credit increase of 10.5 percent (reaching nearly 70 trillion dong), mobilisation growth of 10.8 percent (reaching 86.7 trillion dong).
ABBank also expects to increase total income to nearly 4.260 trillion dong, up by 17.7 percent compared to 2019; control operating costs at 2.064 trillion dong (up by only 8.9%). The bank’s Cost to Income Ratio (CIR) is expected to see a sharp rise by falling from 52 percent to 48.5%.
In 2020, ABBank aims to achieve a pre-tax profit of 1.358 trillion dong, up by 10.5 percent compared to the 1.229 trillion dong realised in 2019. The bank also expects to improve the productivity of its employees by targeting to increase the average pre-tax profit per employee to 342 million dong from 310 million dong per person in 2019, equivalent to an increase of about 10%.
At the coming AGM, ABBank will elect additional members of the BOD. According to the bank’s BOD in the documents submitted to shareholders, the bank’s major shareholder Malaysia Banking Berhad (Maybank) from July 2018 made an announcement on the change of Maybank’s capital representative. Accordingly, Jason Lim Tsu Yang Maybank’s Head of Strategic and Business Development will replace Lim Siew Ming to represent Maybank’s capital contribution (50%) at ABBank, and to be a member of the BOD.
In recent time, ABBank’s BOD has been operating with six members because the profile of Jason Lim Tsu Yang (born in 1983) needs to be completed in accordance with the regulations. So far, with approval of the SBV, the bank’s BOD proposed shareholders for approval to include Jason Lim Tsu Yang into the BOD from now until the end of the term (2016 2021).
It is known that ABBank’s BOD currently has six people including Dao Manh Khang Chair of the BOD, Vu Van Tien vice Chair, and four members including Soon Su Long, Iris Fang, Nguyen Danh Luong and Luu San Soc, of which Luong and Sau are the two independent Board members.
