BCEL forecasts stable profit before tax
BCEL forecasts stable profit before tax
Banque pour le Commerce Exterieur du Laos Publique (BCEL), the largest commercial bank in Laos, this year expects to generate the same amount of profit that it did last ye ar.
Last year the bank earned 250.6 billion kip in profit before tax and in this year's plan it is forecasting the same amount of 250 billion kip, the board reported last week during the annual general meeting of shareholders at the Lao Security Exchange in Vientiane.
After tax profits last year amounted to ab out 200.6 billion kip and the board proposed to pay 107.2 billion kip in dividend to shareholders whilst building up cash reserves in accordance with standard commercial practice, allowing them to pay out dividend of about 785 kip per share, BCEL General Managing Director, Mr Vanhkham Voravong repor ted.
The dividend of 785 kip gets paid in two installments with the first 405 kip already having been paid out in the first six months of 2013 and the remaining 380 kip to be paid to shareholders now, he explained.
In the 12 months of banking activity to the e nd of October 2013, the amount of money deposited by the bank's clients rose by 14 percent while the total amount issued as loans increased by about 21 percent, said Mr Vanhkham.
The steady growth in profit earned by the bank over the past few years came to a halt last year with the bank showing a slight reduction against 2012. Results over the last five years show pre-tax profits as 135.3 billion kip in 2009, 140.2 in 2010, 199.3 in 2011, 286 in 2012 and 250.6 in 2013.
In January 2011 the bank was floated on the stock exchange whilst also accepting an investment equivalent to 13.6 million shares or 10 percent of its total ordinary share value from its strategic partner CofiBred, in accordance with the Ordinary Share Purchase Agreement between the Ministry of Finance and CofiBred.
According to CofiBred, the purchase was completed and the total price of 150.2 billion kip paid in full to the Ministry of Finance between 25 July and 29 July 2011.
As at 31 December 2012, the government's shareholding accounted for 70 percent of the Bank's capital, equivalent to 95.6 million shares, while local investors' shares, including employees of the bank, accounted for 15 percent which is equivalent to about 20.4 million shares.
CofiBred's 10 percent holding and the remaining 6.8 million shares or five percent owned by foreign investors make up the balance.
vientiane times
