According to the statement of Chairman of the Board of Directors of Eximbank, Le Minh Quoc: "Eximbank's operating principles are transparency, compliance with the law, professionalism, efficiency, gradually applying the best practices and standards."
Ho Chi Minh City Stock Exchange has just decided to put shares of Vietnam Import-Export Commercial Joint Stock Bank (Eximbank - Stock code EIB) into warning status from April 8, 2016. Putting stock codes on warning is just a normal technical activity of the Ho Chi Minh City Stock Exchange regarding past backlogs. This has also happened to listed companies with accumulated losses on their annual audited financial statements.
Eximbank's Financial Statements (FS) as of December 31, 2015 had an accumulated loss of 817.5 billion VND. This issue arose in the years from 2010 to 2013 and was reported in the Extraordinary General Meeting of Shareholders (AGM) on December 15, 2015. The cause of this accumulated loss is that Eximbank sold fixed assets such as real estate to E Xim Real Estate Joint Stock Company (Eximland) and recorded the profits in its income statement. in the period 2010 - 2013. This was not recorded in accordance with regulations, so the bank retroactively adjusted undistributed profits as of December 31, 2014, leading to this accumulated loss. However, this loss does not arise from pure business activities at all. This confirms the new Board of Directors' determination to be transparent.
According to the audited consolidated financial statements, Eximbank's operations in 2015 alone demonstrated the bank's stable and safe status. The bank's total assets in 2015 were 124,850 billion VND; Pre-tax profit is 61 billion VND; Funds appropriated from after-tax profits have a cumulative balance of more than VND 1,500 billion; Bad debt ratio accounts for 1.86% of total outstanding loans, this is a low bad debt ratio in the banking system. Pre-tax profit at 61 billion VND shows that the Board of Directors has aggressively made provisions and handled backlogs according to the stated principles and principles of transparency. The capital adequacy index CAR is 17.03% and the ratio of short-term capital for medium and long-term loans is 48.79% and the ratio of outstanding loans to total deposits is 78.65%.
Based on the positive signals of 2015, the Board of Directors and Executive Board of Eximbank have been coordinating with shareholders, especially strategic shareholder Sumitomo Mitsui Banking Corporation (SMBC is a leading global financial institution to from Japan and a strategic investor who has accompanied Eximbank since 2008) proposed a number of feasible plans to build Eximbank back to a leading position among joint stock commercial banks. The Board of Directors and the Executive Board will present it to the upcoming shareholders' meeting.
All banking transactions are still taking place normally with optimistic signals. Specifically, by the end of the first quarter of 2016, the bank's total assets reached 123,263 billion VND, capital mobilization reached 101,165 billion VND, an increase of 2.8% compared to the beginning of the year. Profit from business activities before risk provisions reached 500 billion VND. The Bank has and continues to carry out full accounting and allocation of risk provisions, increasing financial capacity. Eximbank is gradually entering a professional trajectory, creating a foundation for sustainable development in the coming years.