Insurer Bao Viet (BVH) forecasts lower profit, similar revenue in 2020
Insurer Bao Viet (BVH) forecasts lower profit, similar revenue in 2020
Insurance-finance group Bao Viet Holdings (HoSE: BVH) expects little change for its revenue this year, but post-tax profit is expected to decline.
Total revenue in 2020 is forecast to inch up 0.2 per cent year-on-year to nearly VND45 trillion (US$1.94 billion).
However, post-tax profit is projected to drop 5 per cent year-on-year to VND1.18 trillion.
In 2019, the insurance group earned VND44.87 trillion in total revenue and post-tax profit was VND1.24 trillion.
In the first six months of the year, Bao Viet earned total revenue of VND22.17 trillion, which accounts for a half of the full-year plan, CEO Do Minh Truong said at the annual shareholders’ meeting on Monday.
According to the board of directors, this year’s earnings are projected based on the expected risk provision of 3.35 per cent and 3.45 per cent for insurance contracts that were signed before and after February 16, 2019.
This year's performance will be affected by the COVID-19 pandemic, the CEO said.
Bao Viet will also pay an 8 per cent cash dividend for 2019's performance, with shareholders receiving VND800 per share.
The dividend is worth VND594 billion and payment will be extracted from the firm’s full-year post-tax profit.
In 2020, the group expects to spend half of its full-year post-tax profit paying the cash dividend.
In mid-December last year, Bao Viet sold more than 41.4 million shares in a private deal to Japanese corporation Sumitomo Life for VND4 trillion.
The deal meant the Japanese firms increased its stake in Bao Viet to 22.09 per cent from 17.48 per cent and allowed the Vietnamese side to increase its charter capital by VND1.3 trillion to VND7.42 trillion.
As of May 31, some VND850 billion worth of capital had been distributed to member firms to enlarge their capital and VND13.7 billion had been spent on facility upgrades.
Bao Viet shares on Monday fell 3.7 per cent to end at VND45,750 apiece.
