Bac A Bank plans to raise interest rates by 20% by 2021

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The bank sets the target for outstanding loans and mobilization in market 1 to increase by 11% and 8%, respectively. Bac A Bank submitted a plan to issue more than 44.6 million shares to pay dividends. The bank sets a 2021 consolidated after-tax profit target of 700 billion dong, up nearly 20% year-on-year.

According to the 2021 annual shareholder meeting document, Bac A Bank (HNX: BAB) sets a consolidated after-tax profit target of 700 billion dong, up nearly 20% year-on-year.

Total assets by the end of the year are expected to increase by 7% to 125,510 billion dong. In which, customer loan balance increased by 11% to 88,179 billion dong. The norms may be changed or adjusted according to the State Bank’s request. Raising capital in market 1 is planned to reach 99,851 billion dong, up by 8%. NPL ratio controlled below 1.5%.

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Bac A Bank plans to increase pre-tax profit by 20% in 2021. Source: BacABank

The Board of Directors also submitted a plan to issue more than 44.6 million shares to pay dividends in 2020, equivalent to 6.3%, expected to increase its charter capital to over VND 7,531 billion. New shares are not restricted to transfer.

At the end of November 2020, Bac A Bank increased its charter capital from 6,500 billion VND to 7,085 billion VND to approve, issue shares to pay 9% dividend.

With more than VND 446 billion added, Bac A Bank will use VND 30 billion, fixed asset investment and network development, VND 10 billion in other investments and more than VND 406 billion to provide credit to priority customers. Implementation time is expected to be this year.

In 2020, the bank’s consolidated pre-tax profit was nearly 737 billion, down 21% compared to 2019. As of December 31, 2020, the total assets reached 117,192 billion dong, up 8.6% over the end of the previous year. Customer loans increased by 9%, at VND79,440 billion. Customer deposits increased by 13.5%, reaching VND86,442 billion. NPL ratio is 0.79%.

Source: ndh.vn – Translated by fintel.vn