Bad debts decreased, and employee incomes increased significantly.
Vietnam Export Import Commercial Bank (Eximbank - EIB) has just announced its consolidated financial report for the first six months of 2024, with many positive figures.
Accordingly, Eximbank achieved pre-tax profit of over VND 1,475 billion, a 5% increase compared to the first six months of last year. Although only 28% of the year's plan has been completed, the bank's profit picture shows promising results as business profits have been steadily increasing each quarter.
Specifically, profits in the second quarter of 2024 reached VND 813 billion, a sharp increase of 52% compared to the same period last year. This impressive recovery was significantly contributed by a 38% increase in net interest income, reaching nearly VND 1,512 billion. Meanwhile, net profit from other activities reached VND 213 billion, three times higher than in the second quarter of 2023.
In the second quarter of this year, Eximbank also allocated VND 221 billion for credit risk provisions, an increase of 24% compared to the same period last year. This shows that the bank focuses on asset quality, even though the non-performing loan ratio has slightly decreased from 2.65% at the beginning of the year to 2.64% as of June 30, 2024.
Comparing the 29 commercial banks that have published their Q2 financial reports, Eximbank is one of the rare banks that currently has absolutely no outstanding debt from corporate bond lending. This can be considered a major plus point for Eximbank's asset quality, especially in the context of the corporate bond market still reeling from the prolonged crisis since 2022.
Besides the aforementioned profit results, several key business indicators of Eximbank also showed optimism, such as customer deposits increasing by 4.3%, reaching VND 163,051 billion at the end of the second quarter.
Meanwhile, customer lending increased by 8% compared to the end of last year, with the amount of capital supplied to the market reaching VND 151,328 billion.
Credit growth was fairly strong, but thanks to a sharp decrease in deposit interest rates compared to the same period last year, the cost of paying interest on customer deposits decreased by 37% to VND 1,708 billion.
As of June 30, 2024, Eximbank's total assets reached VND 211,999 billion, an increase of 5.3% compared to the end of last year.
Notably, employee costs for the first six months of the year (salaries, allowances, and salary-related contributions) increased sharply by 34% compared to the same period last year, reaching nearly VND 543 billion, despite a slight increase in the number of staff (6,226 people as of June 30, 2024, an increase of 196 people compared to the same period last year).
According to calculations, the average income (including salary and allowances) of Eximbank employees in the first six months of the year was VND 24.34 million/person/month, a significant increase compared to VND 17.21 million/person/month in 2023.
In 2024, Eximbank aims for a pre-tax profit of VND 5,180 billion, 90.5% higher than the previous year's results. Total assets are expected to increase by 11%, reaching VND 223,500 billion; and deposits are expected to increase by 10.5%, reaching VND 175,000 billion.
Previously, EIB announced it would pay a 3% cash dividend from accumulated undistributed profits up to 2023. With over 1.74 billion shares listed and outstanding, EIB will spend approximately VND 522 billion to pay dividends. This marks the first time in 10 years that the bank has paid a cash dividend.
Major shareholder revealed in takeover bid
Having once had a "golden opportunity" to rise to the top of the banking system due to previous internal issues, Eximbank is gradually showing a solid comeback after the Board of Directors has done a good job of managing internal affairs over the past year.
Notably, the State Bank of Vietnam recently approved Gelex Group – a leading Vietnamese investment group with core brands such as Viglacera, CADIVI electric cables, EMIC electrical measuring equipment, THIBIDI transformers, HEM electric motors, CFT copper wires, Song Da clean water plant, etc. – to purchase shares in Eximbank.
Following the transaction, Gelex will become a major shareholder of this bank.
According to the approval document, the transaction is expected to be executed through order matching and/or negotiated transactions via the Ho Chi Minh City Stock Exchange's securities trading system this year.
If the transaction is successful, GELEX will increase its expected ownership stake to 10% of Eximbank's charter capital. This is also the maximum percentage that an institutional shareholder can own in a credit institution according to the Law on Credit Institutions 2024.
In early July, the State Bank of Vietnam also approved a plan to increase Eximbank's charter capital through the issuance of shares to pay dividends to shareholders. Specifically, Eximbank will issue an additional 121.9 million new shares, equivalent to an increase in charter capital of nearly VND 1,219 billion. After the issuance, the bank's charter capital will reach VND 18,688 billion.
Eximbank recently announced the list of shareholders owning 1% or more of the bank's charter capital. Gelex Group Joint Stock Company is the largest shareholder, holding 4.9% of the charter capital. Following closely behind are VIX Securities Joint Stock Company with 3.58% and Thang Phuong Joint Stock Company with 3.07%.
The two individual shareholders on the published list are Ms. Le Thi Mai Loan (1.03%) and Vice Chairwoman of the Board of Directors Luong Thi Cam Tu (1.12%).
Source: https://vietnamnet.vn/sap-don-co-dong-lon-moi-eximbank-lam-an-ra-sao-2308744.html
