Acting CEO of Eximbank Nguyen Hoang Hai said that the credit card debt of VND 8.8 billion causing public confusion is a big lesson for the bank, and will not let this situation repeat.
The Shareholders’ Meeting of Vietnam Import-Export Commercial Joint Stock Bank (Eximbank, EIB) on the morning of April 26 in Ho Chi Minh City attracted the attention of many shareholders when the bank recently attracted public attention about customer cases. Credit card debt of 8.5 million VND became 8.8 billion after 11 years.
“The calculation of credit card interest causes confusion in public opinion, what is EIB’s policy? Is there a fee for inactive accounts?”, a shareholder asked.
Mr. Nguyen Hoang Hai answered shareholders’ questions at the morning meeting on April 26. Image: Thi Ha
Responding to questions, Acting CEO Nguyen Hoang Hai said that this is a big lesson for the bank. This impact reminds EIB of the need to rebuild the system and create a better image. The company aims to calculate profits in accordance with market practices and satisfy customers.
“The case of credit card debt from 8.5 million to 8.8 billion will not be repeated again and inactive payment accounts will not be charged fees,” Mr. Hai affirmed.
Like VnExpress Eximbank’s information and method of calculating interest and fees on credit cards from principal balance of 8.5 million to 8.8 billion, according to banking circles, is “abnormal”.
Compare the way to calculate customer Huy Anh’s credit card balance based on compound interest and interest on principal balance.
Previously, at the economic and social press conference in Ho Chi Minh City, on the afternoon of March 21, Eximbank leaders said that processing staff had mechanically sent notices to customers without approval from leaders. Therefore, the bank “will not collect the debt of 8.8 billion” but will work with the customer to agree on a reasonable solution and harmonize the interests of both parties.
To date, Eximbank has not yet announced the interest rates and fees applicable to customer Pham Huy Anh (Quang Ninh), who has a credit debt of 8.5 million VND but became a bad debt of 8.8 billion VND, after 11 months. year.
Regarding this year’s business plan, Eximbank set a pre-tax profit target of VND 5,180 billion, an increase of 90.5% compared to 2023 performance results, which makes shareholders worry that it is unlikely to be feasible. However, the EIB board of directors believes that this plan is completely well-founded.
The reason last year, instead of accelerating like other banks, chose to invest in infrastructure and internally to create momentum for a breakthrough. This year is the year of inheriting the results after building a solid internal structure and the company will return to the top 10. In the first quarter of this year, the credit market was the most difficult in the past 18 years, but company leaders believe that from the third quarter, the credit market will be the most difficult. The market will be warm, results will breakthrough and meet shareholders’ expectations.
Regarding stock price, many shareholders think that EIB is lagging behind other banks. Acknowledging this, Ms. Do Ha Phuong – President of EIB said that the cause depends on supply and demand and investor psychology. Currently, EIB’s financial index is growing uniformly, and its operational safety index is in accordance with regulations. The bank’s efficiency is also gradually improving, NIM (net interest margin) has increased by 40 basis points, so she hopes that in the near future the stock price will reflect the full value of the bank.
EIB Board of Directors at the shareholders’ meeting on the morning of April 25. Image: EIB
Regarding the plan to sell capital to foreign shareholders, EIB leaders said that the bank is still in the stage of finding a large shareholder in the world to help the bank change its situation and reach international level. This information (if any) will be presented to shareholders at meetings after everything is ripe, the bank’s leader said.
Shareholders today also approved the dismissal of Ms. Le Thi Mai Loan as a member of the Board of Directors. Previously, Ms. Loan resigned for personal reasons on January 31.
Replacing Ms. Loan is Mr. Nguyen Ho Nam – Chairman of Bamboo Capital Joint Stock Company. Mr. Nam is also concurrently holding the position of Chairman at Bamboo Energy Joint Stock Company and member of the Board of Directors at Fides Vietnam Fund Management.
This year, the bank’s total assets are expected to reach VND 223,500 billion, capital mobilization will increase by 10.5%, to VND 175,000 billion. Eximbank targets credit balance to grow by 14.6%, to VND 161,000 billion, while the bad debt ratio decreases to the level of 2022, at 1.8%.
The bank’s 2023 profit is VND 2,146 billion. After setting up funds, Eximbank has 1,949 billion VND of accumulated retained profit until December 31, 2023. The bank will pay dividends to shareholders at a rate of 10%. Of which, 7% is divided in shares (1,219 billion VND) and 3% is divided in cash (more than 522 billion VND).
Thi Ha
