Southeast Asia Commercial Joint Stock Bank (SeABank) held the annual shareholder meeting on April 29 to approve the plan of 13.6 percent credit loan growth, equivalent to nearly 14 trillion dong. Customer mobilisation and valuable papers is planned to grow by 13.8%, equivalent to 15.3 trillion dong, compared to 2019. Total assets are expected to increase by 12 percent to 175.6 trillion dong. The bank aims to achieve a pre-tax profit of 1.506 trillion dong, up eight percent compared to the year 2019. The bad debt ratio will be under three percent.
Le Thu Thuy, vice Chair of the Board of directors cum general director, said that according to the bank’s assessment before the Covid-19 movement, there are 14 industries affected by Covid-19 and there are six industries in wholesale, tourism, food at SeABank. The bank has maintained a loan ratio on collaterals of 50%, enough to guarantee for loans, particularly real estate is 70%.
Sharing more about the activities of the Post and Telecommunication Finance Company Limited (PTF), which was transferred by SeABank in 2019, the lending products were brought to the market in December 2019. The company aims to sell its products through sales channels and collaborators. Currently, PTF is deploying via fintech and strategic partners VNPT, BRG, and VNPost. Customers from partners have good transaction history and credit ratings.
The bank’s leader determines that PTF’s profits will remain modest and continue to invest in technology and facilities. In the five-year plan, PTF outstanding loans is expected to account for no more than five percent of SeABank’s total loan balance after the merger, so it does not affect the bank’s operations.
SeABank will also increase its charter capital by 2.719 trillion dong, to 12.088 trillion dong, through two phases. It will pay a 14 percent stock dividend, equivalent to issuing 131.166 trillion shares. The source is deducted from profit after tax in 2019. The remaining round is offering nearly 141 million shares to existing shareholders at the rate of 15 percent at 10,000 dong per share.
With the proceeds, the bank will invest 80 billion dong for fixed assets investment and 1.789 trillion dong for corporate and individual customers, the rest will invest in additional bonds which have low risk level as credit institution bonds and government bonds.
Shareholders also approved the listing of SeABank shares on Hochiminh Stock Exchange (HOSE). This is the 3rd consecutive year this bank has put its shares in the listed stock market, after two years of delay.
Another issue reiterated at the 2020 congress was the change of headquarters from 25 Tran Hung Dao to 198 Tran Quang Khai, Ly Thai To Ward, Hanoi. Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is also located its headquarters at 198 Tran Quang Khai.
In addition, the bank is allowed to amend and supplement the provisions of the share issuance plan according to the 2018 employee selection programme (ESOP 2018) and some contents of the bank’s charter.
In 2019, bank profit before tax increased by 105 percent to 308.7 billion dong. Profit after tax increased equivalent to 308.4 billion dong. The bank said that the results had been achieved by implementing many programmes to promote business activities, while expanding the development of many other products and services such as interest rate derivatives, strengthening payment services, and LC.
