Update news Vietcombank
The State Bank of Vietnam allowed Vietcombank to raise its charter capital from 47 trillion VND (2 billion USD) to 55 trillion VND (2.3 billion USD) by issuing shares to pay dividends from the remaining profits of 2019 and 2020.
Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.
Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.
Increasing chartered capital is the most important task for the four state-owned commercial banks. If their CARs are lower than Basel II standards, they will have to restrict lending.
Banks, especially State-owned banks, are expected to increase their capital significantly this year as they are allowed to retain profits or pay dividend in shares instead of cash as previously.
Commercial banks are seeking more workers even though the economy has been hit hard by the pandemic. Recruitment notices say banks need both officers and medium- and high-ranking managers.
Banks have cut wages of high-ranking executives to cope with the effects of Covid-19.
Many banks have adjusted business plans and set lower business targets as businesses, or bank clients, have been hit hard by Covid-19.
Within five years from the day the FTA takes effect, Vietnam pledges to consider European credit institutions’ proposals to allow them to hold up to 49 percent of shares in two Vietnamese joint stock banks.
Vietnam has for the first time witnessed businesses making high profit of $1 billion. Reaching new heights, Vietnamese businesses now cherish more ambitious plans.
The Government has decided to allow Vietcombank and Vietinbank to increase their charter capital by 10 trillion VND (434.8 million USD) in the first quarter of this year, Deputy Prime Minister Vuong Dinh Hue said last month.
VND92 trillion is the amount of money that four state-owned banks, or the ‘big four’, have paid to the state budget since 2014.
Most large-cap firms have released full-year earnings reports for 2019 with 29 companies reporting a pre-tax profit of more than VND3 trillion (roughly US$130 million).
While Vietcombank leads state-owned banks in terms of profit, there are three candidates for the No 1 position among private banks.
All four major state-run banks, including Vietcombank, Vietinbank, Agribank and BIDV, are expected to qualify for Basel II standards in 2020.