The 2024 Annual General Meeting of Shareholders (AGM) of Vietnam Technological and Commercial Joint Stock Bank ( Techcombank ) held on the morning of April 20, 2024 has just approved the 2023 profit distribution plan with a cash dividend rate of up to 15% of par value (shareholders owning 1 share will receive 1,500 VND).

With the above dividend distribution ratio, Techcombank will spend nearly 5,300 billion VND on profit distribution to shareholders. Paying cash dividends at a rate of 15% makes Techcombank a rare bank today in terms of "willingness to spend" for shareholders.

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Techcombank Chairman of the Board of Directors Ho Hung Anh answers shareholders

This is the first year in 10 years that Techcombank has paid dividends in cash. According to Mr. Ho Hung Anh - Chairman of the Board of Directors of Techcombank - with the highest equity among Vietnamese banks today, that allows Techcombank to pay dividends in cash while still ensuring safety indicators.

“I hope that paying cash dividends this year will start so that in the following years we can achieve our growth targets,” said Mr. Ho Hung Anh.

The source for dividend distribution is the Bank's undistributed profits after setting aside funds as of December 31, 2023 according to the audited separate and consolidated financial statements for 2023.

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Shareholders ask questions

Also at the Congress, shareholders approved the plan to increase charter capital from over VND 35,225 billion to over VND 70,450 billion through issuing shares from equity capital. The issuance ratio is 1:1, shareholders owning 100 shares with rights will receive 100 new shares.

The issuance subjects are all existing shareholders whose names are on the list on the shareholder record date to exercise the right to receive shares from the increase in charter capital from issuing shares from equity capital.

The expected time to complete the capital increase by issuing shares is in 2024 or until Techcombank completes the procedures as prescribed by law. After the issuance, Techcombank, together with VPBank , will become a real "power" in the banking industry in terms of charter capital scale.

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CEO Jens Lottner answers shareholders

Techcombank is one of the leading banks in terms of profit in 2023 with VND 22,888 billion in pre-tax profit. Total assets as of December 31, 2023 reached VND 849,500 billion.

In particular, Techcombank's strategy of attracting new customers and establishing key banking relationships has helped the bank stay at the top in terms of CASA balance, reaching a rate of 40% as of December 31, 2023. Leading digital capabilities and the ecosystem of partners have helped Techcombank attract 2.6 million new customers by 2023, contributing about VND6.7 trillion to CASA growth.

The General Meeting of Shareholders approved the 2024 business plan with important targets such as: Outstanding credit balance of VND 616,031 billion, up 16.2% (as approved by the State Bank); total customer deposits in line with actual credit growth, to optimize the balance sheet (in 2023 reaching VND 507,157 billion, up 34.3%); pre-tax profit of VND 27,100 billion (up 18.4%); bad debt ratio lower than 1.5%.

To achieve the above plan, Techcombank will focus on accelerating in 3 priority areas: Increasing CASA non-term deposits; diversifying credit portfolio; strengthening main banking transaction relationships (MOA) for individual and institutional customers.

The General Meeting of Shareholders also approved the 2024 remuneration budget for the Board of Directors and the Supervisory Board with a fixed remuneration of VND 38.6 billion (VND 34.9 billion in 2023), operating expenses and other expenses of VND 9.3 billion (VND 8 billion in 2023).

Techcombank shareholders also elected the Board of Directors and Supervisory Board for the 2024 - 2029 term with 09 Board members (1 more member than the previous term) and 03 Supervisory Board members.

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Introducing the Board of Directors and Supervisory Board for the 2024 - 2025 term

The new term Board of Directors includes: Mr. Ho Hung Anh (Chairman of the Board of Directors), Mr. Nguyen Dang Quang (First Vice Chairman), Mr. Nguyen Thieu Quang, Mr. Nguyen Canh Son, Mr. Ho Anh Ngoc, Ms. Nguyen Thu Lan, Mr. Saurabh Narayan Agarwal, Mr. Pham Nghiem Xuan Bac (independent member), and Mr. Eugene Galbraith (independent member).

Among them, Ms. Nguyen Thu Lan, Mr. Pham Nghiem Xuan Bac, and Mr. Eugene Galbraith are new members.

The list of Board of Supervisors for the 2024 - 2029 term includes: Mr. Hoang Huy Trung, Ms. Bui Thi Hong Mai, and Ms. Do Thi Hoang Lien.

Ms. Nguyen Thu Lan, born in 1969, has been with Techcombank for more than 22 years. She is currently holding the position of Acting Director of Risk Management.

Mr. Pham Nghiem Xuan Bac, born in 1961, has held leadership positions in domestic and international organizations in fields such as capital markets, real estate, and intellectual property.

Mr. Bac is currently the General Director of Vision Joint Venture Company Limited, Chairman of the Board of Directors of the following companies: Vision Law and Joint Venture Company Limited, Cong Huong Joint Stock Company, and Phi Thuyen Dau Tu Joint Stock Company.

Mr. Bac is currently Head of the Supervisory Board of Ho Chi Minh City Securities Corporation (HSC).

Mr. Eugene Galbraith, born in 1952 (American nationality), is currently a lawyer of the Hanoi Bar Association. He has many years of experience as an economic planning consultant for the Indonesian Ministry of Finance . He is currently a member of the Independent Council of KB Bukopin Bank (in the process of term termination).

Tuan Nguyen