Vietcombank sells VND1 trillion in non-performing loans in 2014
(VOV) - The Bank for Foreign Trade of Vietnam (Vietcombank) aims to control its non-performing loan (NPL) rate at 2.73% and sell VND1 trillion in NPLs to the Vietnam Asset Management Company (VAMC).
Nguyen Hoa Binh, Chairman of the Board of Directors of Vietcombank, revealed the information at the bank’s annual shareholders congress in Hanoi on April 23.
Vietcombank will also continue divesting from other banks at the request of the State Bank of Vietnam, said Binh.
“We will retain our stock at efficient banks such as Military Bank (MB) and Eximbank, and divest from others to make our investment more efficient,” he said.
Binh also assured shareholders that the process of mergers and acquisitions (M&A) will definitely take place at Vietcombank, but did not disclose when it will happen.
The bank is increasing its charter capital to prepare for the M&A process if time permits, he said.
At the convention, shareholders agreed to raise the bank’s charter capital by an additional VND3.476 trillion this year to VND26.65 trillion.
This year, Vietcombank plans to expand its total asset value by 11% to VND520.583 trillion, its credit balance by 13% to 309.975 trillion, and its pre-tax profit and provisions by 13.35% to VND10.500 trillion.
The bank intends to open 16 more branches in Vietnam and other branches in Myanmar and Laos in 2014.