Eximbank General Meeting of Shareholders: Chairman of Bamboo Capital joins the Board of Directors

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Eximbank General Meeting of Shareholders: Chairman of Bamboo Capital joins the Board of Directors

On the morning of April 26, Vietnam Export-Import Commercial Joint Stock Bank (Eximbank, HOSE: EIB) plans to submit to the 2024 Annual General Meeting of Shareholders its business plan, dividend distribution, capital increase, headquarters relocation and election of additional members of the Board of Directors. . Mr. Nguyen Ho Nam – Chairman of the Board of Directors of Bamboo Capital (HOSE: BCG) was elected to the Bank’s Board of Directors.

The General Meeting of Shareholders approved 13 contents and proposals, only the proposal approved changing the location of the head office of the Company. EIB The non-approval rate is 90.62% of the shares attending the meeting.

Chairman of Bamboo Capital joined the Board of Directors

At this congress, the General Meeting of Shareholders approved the dismissal of the position of Member of the Board of Directors for Ms. Le Thi Mai Loan. Previously, Ms. Loan resigned for personal reasons on January 31, 2024. Ms. Loan was elected to the Board of Directors at Eximbank’s extraordinary General Meeting of Shareholders on February 14, 2023.

Eximbank elected 1 additional member of the Board of Directors for term VII (2020-2025) according to the list of candidates approved by the State Bank. Accordingly, the additional elected candidate 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, Member of the Board of Directors at Fides Vietnam Fund Management.

Mr. Nam was elected Member of the Board of Directors with a voting rate of 99.63% of voting shares attending the meeting.

Grandfather Nguyen Ho Nam (holding flowers) was elected to the Board of Directors of Eximbank

Dividends at a total rate of 10% in cash and stocks

In 2023, Eximbank will have 2,146 billion VND in profit after tax. After setting up funds, Eximbank has 1,949 billion VND of accumulated retained profit until December 31, 2023. After deducting the bonus and welfare fund, the Bank has 1,740 billion VND left to distribute dividends to shareholders at the 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).

After paying dividends, the Bank has nearly 59 billion VND in retained profit.

Regarding the stock dividend plan, Eximbank plans to issue an additional 121.86 million shares, at a rate of 7% (owning 100 shares will receive a maximum of 7 new shares).

Capital source is from accumulated undistributed profits until 2023 after setting up funds. If the issuance is successful, Eximbank’s charter capital will increase from VND 17,470 billion to a maximum of VND 18,688 billion.

The increased capital will be used by the Bank in business activities to invest in facilities, technological infrastructure, build headquarters, expand operational networks, and invest in fixed assets. Expected implementation time is 2024.

Previously, in 2023, Eximbank paid dividends in shares twice at the rate of 20% and 18%. The bank pays its first stock dividend in February 2023 from retained profits of 2017, 2018, 2019, 2020 and 2021.

2024 pre-tax profit target reaches 5,180 billion, an increase of 90%

With the additional capital, in 2024, Eximbank targets pre-tax profit to reach 5,180 billion VND, an increase of 90% compared to 2023 results. It is expected that by the end of 2024, total assets will reach 223,500 billion VND, an increase of 11%. compared to the beginning of the year. Capital mobilization and credit balance reached VND 175,000 billion and VND 161,000 billion, respectively, an increase of 10.5% and 14.6%. The bad debt ratio is controlled at 1.8%.

Business plan for 2024 EIB submitted to the General Meeting of Shareholders

Please move the headquarters

Eximbank also asked for shareholders’ opinions on changing the location of its headquarters. Eximbank said that its headquarters is currently located at Vincom Center Building, No. 7 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City, which has been leased to Eximbank from 2011 to present.

After 13 years of operation, some technical and material systems have degraded, limiting the promotion of the brand image and not commensurate with the Bank’s position.

Along with the roadmap to continue investing in building the headquarters at land number 7 Le Thi Hong Gam, District 1, Ho Chi Minh City is still the top focus to fully exploit the potential and value of the land. This. Currently, the project is being implemented to seek advice from City leaders on the implementation of local adjustments to zoning planning to suit the State’s changes in planning and construction policies.

While waiting for the construction of its headquarters at 7 Le Thi Hong Gam, Eximbank needs to rent another office building for its headquarters.

After the survey process, the Board of Directors found that the Office building (Fideco Center) at 28 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City meets Eximbank’s needs and plans to submit to the General Meeting of Shareholders on moving the headquarters to this location.

However, the approval submission changed the location of the head office EIB The non-approval rate was 90.62% of the shares attending the meeting.

Discuss:

The case of calculating credit card interest from 8 million to over 8 billion is a big lesson

Question from CTS: Calculating credit card interest from 8 million to more than 8 billion VND for customers is a hot issue, the policy of EIB how?

Acting CEO Nguyen Hoang Hai: This is a great lesson. This is meaningful in rebuilding the system, creating a better image for EIB. There are many different ways to calculate interest. We are aiming to calculate interest in accordance with market practices and satisfy customers. We will not let this happen again and work with respect for our customers. Is there a fee for inactive accounts? We will not charge a fee.

But these accounts are waste, we will cut them off if customers do not use the service.

EIB seriously consider and learn from this in card service operating policies.

What are the responsibilities of bank leaders when the plan is not completed? Is the plan given just for beauty purposes or for some other reason?

Permission CEO Nguyen Hoang Hai: The point of view is that if we don’t pass, it means we won’t pass, there’s no reason for that. As for responsibility, we have almost no reward systems and take responsibility for non-fulfillment mainly from the leadership. The rewards and income for this we do not receive for the past 2023.

The principles of the Board of Directors and the Board of Management are self-reliance, self-reliance, self-respect and pride. We take pride in the fact that if we do not complete the plan, we will be responsible.

The plan is not made for the sake of it, we will try to do it with all our heart, dedication and dedication. This year, the efficiency factor will be number one after last year’s number one priority was safety.

To date, profit has reached 1,009 billion VND

In the first quarter, banking stocks increased sharply but EIB price reduced again. Why stock prices EIB Always go against the market?

Chairman Do Ha Phuong: This is a question the whole market is interested in.

First, at the end of 2023 and early 2024, some banking stocks will increase well. Many bank stocks do not increase or decrease, EIB belongs to this group. The reason why stock prices increase or decrease depends on supply and demand and investor psychology.

Second, the average PB index of the banking industry is 1.26, of EIB is 1.37, slightly better than the market.

Third, financial index of EIB Uniform growth, operational safety index meets legal regulations. Bank efficiency is also gradually improving. NIM increased by 40 basis points.

But this factor will have a positive impact on stock prices. 626 people of EIB will commit wholeheartedly to the development of the bank, hoping that at that time the stock price will reflect the full value of the bank.

In 2023, there was also a plan of 5,000 billion but it was not fully implemented? What were the results of the first quarter?

Permission CEO Nguyen Hoang Hai: 2023 is a difficult year, some banks still have positive results in comparison EIB. EIB is a healthy bank with a non-concentrated shareholder structure. In a chaotic context, safety comes first, efficiency comes second. The Board of Directors chose to safely invest in infrastructure and internally to create momentum for a breakthrough. 2023 results stagnated compared to the previous year. The 2024 plan inherits a solid foundation of safety and cost optimization measures, so the 2024 plan is very feasible.

Quarter 1/2024 is very difficult, finding customers is very difficult. There are very few people in need of loans. The bank has taken many measures to ensure credit growth. At the end of the first quarter, profit was 661 billion VND. To date, profit is 1,009 billion VND.

What are the results of the bank inspection?

Permission CEO Nguyen Hoang Hai: Working with relevant parties and following the conclusions of the banking inspectorate. We are working with so many that it is difficult to control the progress.

The inspection does not affect the Bank’s business plan. We build action plans independently of these stories.

Is there a plan to sell capital to foreign shareholders?

Permission CEO Nguyen Hoang Hai: SMBC divests capital, we are still in the stage of finding a large shareholder in the world to really change the face of EIBbringing the bank to reach the world, not just in Vietnam.

In 2022, when Ms. Luong Thi Cam Tu takes charge, the results are very good. Will we give more power to Ms. Tu?

Permission CEO Nguyen Hoang Hai: Ms. Tu has created solid momentum for the bank to develop over the past 3-4 years. Mrs. Tu is still accompanying EIB to complete the business plan. We always follow the directions that Ms. Tu has built as Chairman of the Board of Directors. But issues related to the authority of the Board of Directors depend on the bank’s regulations.

The bank said who the current major shareholder is, is it considering finding strategic shareholders?

Chairperson Do Ha Phuong: There are currently no major shareholders owning 5% or more of the capital. Does not materially affect the Bank’s core business activities. The positive point is that the bank will operate transparently. However, to develop in quality, we still need potential and leadership and support. The bank will consider finding strategic investors after submitting it to shareholders for voting.

Chi Kien

FILI