North Asia Commercial Joint Stock Bank increased its charter capital to 7,531 billion VND

BAC A BANK's 2021 Annual General Meeting of Shareholders took place in Cua Lo Town. Photo: PV

Impressive numbers

According to the report of the Board of Directors at the 2021 Annual General Meeting of Shareholders; BAC A BANK has completed the overallRestructuring ProjectDevelopment period 2016 - 2020 with the plan approved by the State Bank, the results completed most of the targets and some important goals.

In the context of the difficult business environment due to the Covid-19 pandemic, BAC A BANK has proactively and quickly adjusted its business targets and plans accordingly and achieved very impressive results. Most of the business plan targets of the whole system have been achieved and exceeded: Total assets of VND 117,300 billion, reaching 101.5% of the plan; Charter capital increased by VND 7,085 billion; Capital mobilization reached 102.9% of the plan; Outstanding credit reached nearly 100% of the plan; Bad debt at 0.79% - 1.5% lower than the plan; Profit reached 104% of the plan.

As of December 31, 2020, BAC A BANK has a transaction network of 146 transaction points including 1 Head Office, 44 branches and 100 transaction offices in 31 key economic provinces and cities across the country.

Shareholders participating in voting at the General Meeting. Photo: PV

2021 is the year that begins the 2021 - 2025 development period. BAC A BANK is determined to continue to build and implement safe and effective business goals and plans. In March 2021, BAC A BANK officiallystock listingon Hanoi Stock Exchange (HNX).

The official and timely listing of BAB shares on the stock exchange is a step to affirm the bank's reputation and position in the market, increase shareholder benefits, access another channel for long-term capital mobilization, information transparency, increase corporate value and the ability to access new investors. This is considered a premise for BAC A BANK to continue to grow strongly and comprehensively in the coming period.

Appropriate development strategy

The impacts of the Covid-19 pandemic lasting into 2021 are expected to create many new challenges, requiring cautious steps for most businesses.

“BAC A BANK is preparing full resources to builddevelopment strategysuitable for the new period. Activities that will be focused on include: developing digital banking, promoting service activities, increasing the proportion of service revenue in total net income, improving human resource quality, continuing to strengthen cost management to improve the operational efficiency of units across the system, preparing steps to implement according to the network development plan. At the same time, continue to invest in developing information technology systems, maintaining stable, safe and secure operating systems; improving risk management, strengthening inspection, control and internal audit" - said a representative of BAC A BANK.

Mr. Dang Trung Dung - Permanent Deputy General Director of Bac A Commercial Joint Stock Bank answered shareholders' questions. Photo: PV

Based on the business plan developed at the beginning of the year, the Board of Directors has developed a business orientation plan for 2021 of BAC A BANK, which has been adjusted in accordance with the operating situation as well as the forecast of the business environment compared to 2020. Accordingly, it is expected that total assets will increase by 7.0%; charter capital will increase by 6.3%; customer deposits will increase by 8.0%; outstanding loans will increase by 11.0%; service revenue will be VND 105 billion; pre-tax profit will reach VND 875 billion; the number of transaction points will increase by 9 points.

The annual general meeting of shareholders approved the plan to increase charter capital by VND446 billion by issuing an additional 44.6 million shares to pay dividends with a par value of VND10,000/share, with a stock dividend rate of 6.3%. The source of implementation is taken from the remaining after-tax profit of BAC A BANK in 2020, after setting aside funds.

The additional charter capital is 446 billion, expected to be allocated partly for continued investment and upgrading of the information technology system, partly for building and developing the transaction network, and the remaining part for providing credit to customers in priority areas according to the Bank's development strategy. When successfully issued, BAC A BANK's charter capital will increase from 7,085 billion VND to 7,531 billion VND.

BAC A BANK is a bank that always accompanies customers. Photo: PV

With this capital increase plan, BAC A BANK sets a target profit after tax of VND 700 billion, an increase of 19.66% compared to 2020. ROA and ROE are expected to be at 0.6% - 0.7% and 8% - 9%, respectively.
“BAC A BANK always maintains a cautious approach in business, putting safety and efficiency goals and risk control requirements first. In addition to its outstanding strength in investment consulting in the field of high-tech agriculture; BAC A BANK also advocates promoting retail products and services, especially developing Digital Banking. In the immediate future, in 2021, a Kiosk Banking system will be built to meet the development of modern banking services, aiming to serve customers best and most conveniently,” Mr. Dang Trung Dung, Permanent Deputy General Director of BAC A BANK affirmed at the event.

Ms. Thai Huong - General Director of BAC A BANK also shared and committed to shareholders about capital safety indexes, profit indexes, service revenue indexes as well as the bank's profitability for sustainable development; always comply with general regulations and at the same time improve business efficiency to not disappoint shareholders' expectations.

“With the right development orientation, BAC A BANK will improvecharter capitalto 10,000 billion VND within the next 3 years with solid steps such as: prioritizing opening branches in places with large projects; strongly developing in the direction of digital banking, gradually serving the young generation, meeting the trend of the times" - Ms. Thai Huong shared.

Ms. Thai Huong affirmed that she will continue to strive to build a national bank, accompanying generations of customers, creating a solid foundation for a happy future and life. Photo: PV

Regarding investment consulting activities, BAC A BANK will focus on consulting on resort/retirement real estate projects; expanding to clean food projects other than milk, rice, etc., moving towards completing the construction of kitchens for Vietnamese people, thereby contributing to sharing output and revenue with farmers. In the next 5 years, BAC A BANK will focus on investment consulting on projects on developing herbal and oriental medicine systems, helping to take care of healthcare and public health.

“I really hope that new shareholders can listen and gradually understand the vision of Bac A Bank, and continue to invest in shares. Long-term shareholders can be completely proud of the Bank, because besides the purpose of profit, we have been contributing to building a universal bank, accompanying generations of customers to create a solid foundation for a happy future and life” - Ms. Thai Huong - General Director of Bac A Commercial Joint Stock Bank.