Following the document, Vietcombank expected its total assets to grow 18%, capital mobilization and credit growth at 15%, while bad debt is kept at under 1.5%.
Vietcombank targets US$570 million in profit.
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Notably, the State Bank of Vietnam (SBV)has approved Vietcombank's plan for equity increase in equivalent of 10% its charter capital, the bank announced.
In previous meeting, the board chairman Nghiem Xuan Thanh informed the Singapore's sovereign wealth fund of Government (GIC) is one of the potential buyers for this planned sale. Japanese Mizuho Bank, the largest foreign shareholder of Vietcombank with 15% shareholding, will be allowed to purchase additional shares to maintain its ownership ratio at the bank.
Under the bank's restructuring plan until 2020, the bank set its total assets value to reach US$60 billion, with owners' equity of US$4.5 billion.
In Vietnam, foreign ownership in state banks is capped at 30%. Vietcombank is among the small number of banks that have a 9.12% stake reserved for foreign investors, stated Saigon Securities Research.
Vietcombank's consolidated pre-tax profit in 2017 reached VND11 trillion (US$485 million), a sharp increase of 32.9% over the last year and 16% higher than the target, making it the most profitable bank in the Vietnamese banking sector, according to the bank's year-end meeting on January 12 to prepare its targets for 2018.
The bank's bad debt ratio was kept at 1.11%, a reduction of 0.35 percentage points compared to 2016, which is the lowest rate among Vietnam's credit institutions. Vietcombank's return on average assets (ROAA) and return on average equity (ROAE) were reported at 0.98 and 17.78%, respectively, while its net interest margin (NIM) increased by 2.47%.
