Bao Viet, the largest insurance group in Vietnam, expects its post-tax profit to drop by 5% year-on-year to VND1.18tn ($50m). According to CEO Do Minh Truong, the group’s performance in 2020 will be affected by the COVID-19 pandemic.
However, the group anticipates little change for its revenues this year according to a report from Vi?t Nam News.
Last year, the group earned VND44.87tn in total revenue and its post-tax profit was VND1.24tn.
Its total revenue in 2020 for is forecast to inch up 0.2% year-on-year to nearly VND45tn.
In the first six months of the year, the group earned total revenue of VND22.17tn which accounts for a half of the full-year plan according to Mr Do who was speaking at the annual shareholders’ meeting.
The board of directors stated that this year’s earnings are projected based on the expected risk provision of 3.35% and 3.45% for insurance contracts that were signed before and after 16 February 2019.
Bao Viet will also pay an 8% cash dividend for 2019’s performance with shareholders receiving VND800 per share. The dividend is worth VND594bn 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.