Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has just released the annual shareholder meeting document, scheduled to be held on June 20.
According to documents sent to shareholders before the meeting, the bank plans total assets of 431.48 trillion dong in 2020, up 12 percent compared to the end of 2019. In particular, the expected credit balance nearly 291.6 trillion dongs, up 13 percent or more within the allowed limit of the State Bank of Vietnam (SBV). Capital mobilisation is estimated to reach 268.82 trillion dong, up 13%. Profit before tax is targeted at 13 trillion dong by 2020, an increase of one percent. Bad debt ratio will be controlled below three percent.
Techcombank said that in 2020, the bank planned to expand the ecological model approach to the fast-moving consumer goods value chain and reduce the dependency on housing chains (ReCoM).
In the real estate, construction and construction materials value chains, the bank will also continue to focus on low-risk segments such as residential buyers, sales and delivery phases of the project while it will focus on lending to contractors to spread risks during the construction phase.
In terms of sales and services, Techcombank will continue to promote the digital banking model to expand its ability to meet demand and enhance customer experience.
At the shareholders’ meeting, Techcombank also expects to submit the plan to increase charter capital through the issuance and sale of shares to employees under the employee stock ownership plan (ESOP) programme and to adjust the ownership limit of the foreign investors.
Specifically, Techcombank plans to offer 4.76 million TCB shares to its employees under the ESOP programme at 10,000 dong per share. Expected issuance time in 2020 is in Q3 or Q4. Additional shares are not transferable. If these shares are issued, Techcombank’s chartered capital is expected to increase from 35.001 trillion dong to 35.049 trillion dong.
Regarding the profit distribution plan in 2019, after paying taxes and setting up funds, the total remaining profit that can be distributed by Techcombank is 17.634 trillion dong. This amount is proposed to be maintained by the Board of directors in the form of undistributed profit, to serve Techcombank’s business activities.
