Petrolimex Group Commercial Joint Stock Bank (PGBank) will hold its annual general meeting (AGM) on June 24th. According to the document for the meeting, the bank will propose shareholders for approval of the business plan in 2020 with a pre-tax profit target of 190 billion dong, up by 112 percent compared to 2019.
The bank’s total assets are expected to reach 33.993 trillion dong as of December 31st 2020, up by 7.7 percent compared to 2019. The bank aims to increase total mobilisation by 8.3 percent to 29.550 trillion dong, in which, mobilisation from market 1 is expected to be 27.150 trillion dong, up by 6.9%. The bank’s outstanding credit is set to increase by 6.6 percent to 25.257 trillion dong (five percent if including the investment of corporate bonds). The bank targets to increase charter capital by 300 billion dong to 3.3 trillion dong.
PGBank’s leader said that the outbreak of the Covid-19 pandemic has affected many industries, including the banking industry. PGBank’s orientation in the current context is to select customers with good credit quality to minimise credit risk, and to restructure credit portfolio in the direction of not focusing on a certain group of customers.
In particular, the bank will give priority to small and medium-sized customers and import-export customers, develops short-term credit and target customers in the fields where PGBank has strengths. At the same time, the bank will also prioritise fields such as oil and gas, oil and gas services, coal, agriculture products, health care, and production and trading of consumer goods.
In addition, the bank will also strictly assess customer loans, enhance control before, during, and after lending in order to limit overdue debts and new bad debts.
In 2020, PGBank plans to collect a total of 521 billion dong of bad debts, including 201 billion dong of on-balance sheet bad debts, 268 billion dong of debts sold to Vietnam Asset Management Company (VAMC) (including loan collection from the loans of which bonds were settled), and 52 billion dong of the collection of debts (principal and interests).
In 2020, PGBank plans not to recruit more personnel, focusing on consolidating human resource, improving labour productivity, and strengthen training for employees.
PGBank’s Board of directors (BOD) will also submit shareholders a plan to register and deposit shares on the Unlisted Public Company Market (UPCoM); authorise the BOD to select the time, consultancy unit, and the securities depository and registration procedures on the UPCoM in accordance with the law.
