- 297 shareholders representing 76.4% of voting rights attended VPB’s AGM on April 18. The meeting’s main agenda was to (1) propose business guidance for 2023, (2) seek approval to pay a cash dividend and (3) propose a capital raising plan. The capital raising plan includes (1) a detailed plan for the private placement of a 15% stake to Sumitomo Mitsui Banking Corporation (SMBC) and (2) an ESOP issuing 30.2 million shares (equivalent to 0.45% of current outstanding shares). - 2023 guidance includes credit growth of 33% YoY (the final growth figure is subject to the State Bank of Vietnam’s (SBV) decision regarding the allocation of the top-up quota), funding growth (including customer deposits and valuable papers) of 41% YoY, NPLs over credit exposure (gross loans plus corporate bonds) to be kept below 3%, and profit before tax (PBT) of VND24.0tn (USD1bn; +13% YoY) vs our forecast of VND22.4tn (+5.4% YoY). - VPB proposed a cash dividend of VND1,000/share, which is expected to be paid in Q2-Q3 2023 after the ESOP issuance and private placement to the strategic shareholder. Management expects to pay cash dividends of 30% of NPAT per year until 2026. - The Q&A session focused on VPB’s business outlook and FEC. - We currently have a BUY rating for VPB with a target price of VND26,000/share. |