ACB plans to pay dividends at a rate of 25%, increasing charter capital to more than 44,000 billion VND

Asia Commercial Joint Stock Bank (ACB ) recently announced documents for the 2024 annual general meeting of shareholders. Accordingly, by the end of 2023, ACB had basically completed its set goals with total assets reaching VND 719,000 billion, an increase of 18.25% over the previous year and reaching 107% of the plan. Customer deposits were valued at VND 535,000 billion, reaching 108% of the plan.

In 2023, ACB set a pre-tax profit target of VND20,068 billion. By the end of the year, the bank had completed 100% of this target. Only customer loans reached VND488,000 billion, reaching 98% of the plan.

Continuing in 2024, the bank set a profit plan of VND22,000 billion, an increase of 10% compared to the previous year. At the same time, ACB set a target of total assets of VND805,050 billion, an increase of 12%, customer deposits and valuable papers increased by 11% to VND593,779 billion. The bad debt ratio remained below 2% while this ratio at the end of 2023 was 1.21%.

The bank also set a target of VND555,866 billion in customer loans, up 16% year-on-year. According to ACB, this is a credit growth rate that the bank believes is appropriate to the market situation, while complying with the 2024 credit growth limit assigned by the State Bank.

ACB believes that in 2024, the domestic economy is expected to still face many difficulties and challenges when world demand has not yet recovered strongly. With the Government's solutions to remove difficulties in many markets such as real estate, corporate bonds, etc., the economy in 2024 can recover.

Also in the General Meeting of Shareholders document, ACB presented the 2023 profit distribution plan and the 2024 profit and profit distribution plan. Accordingly, the bank's 2023 dividend-paying profit is VND19,886 billion.

ACB's Board of Directors plans to pay a dividend of 25%, of which 15% is in shares (shareholders owning 100 shares will receive 15 additional shares) and 10% in cash, corresponding to the retained earnings usage of VND9,710 billion. Similarly, in 2024, the bank also plans to pay a dividend of 25% with the corresponding capital usage of VND11,166 billion.

After the dividend, ACB's charter capital is expected to increase to more than VND 44,666 billion, an increase of a maximum of VND 5,826 billion, corresponding to the maximum number of shares expected to be issued of 582.6 million shares. The expected time to complete the plan to increase charter capital is the third quarter of 2024.

The Bank believes that increasing charter capital is extremely necessary to increase medium and long-term capital for credit activities, investment in government bonds, additional capital to build offices, renovate, repair, and relocate distribution channel headquarters; invest in strategic projects and improve financial capacity.

ACB's 2024 Annual General Meeting of Shareholders is scheduled to take place on April 4 at Sheraton Saigon Hotel, 88 Dong Khoi, Ben Nghe Ward, District 1, Ho Chi Minh City. The last registration date to exercise the right to attend the meeting is March 1, 2024 .

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