Vietcombank ends cross-ownership at Military Bank and EximBank
By completing the move, Vietcombank is no longer a major shareholder in both banks in subject and meets the banking regulation on cross-holding limit, raising a combined net profit of about VND900 billion (US$38.4 million).
State-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has announced it succeeded in reducing its stakeholding in both Military Bank (MB) and Vietnam Export Import Commercial Bank (Eximbank) to below 5%, in turn meeting the central bank's regulation on cross-ownership at the two banks.
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Under the regulation set by the State Bank of Vietnam (SBV), commercial banks are permitted to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5%. The SBV requires banks to comply with its requirements before June 30 next year.
On December 6, Vietcombank offloaded 6.68 million Eximbank’s shares, reducing its shareholding from 5.39% to 4.84%.
From December 3 to 7, Vietcombank sold 19.39 million shares of MB, translating into a reduction in stake-holding from 5.39% to 4.98%.
These sales follow Vietcombank’s previous share offloading of 23.7 million shares of MB and 35 million shares of Eximbank in November 30 and December 4.
In total, Vietcombank sold 43.09 million shares of MB and 41.7 million shares of Eximbank.
At the current market price of VND21,000 (US$0.90) for MB share and VND14,200 (US$0.61) for Eximbank, Vietcombank raised a return of VND900 billion (US$38.40 million) and VND600 billion (US$25.6 million), respectively.
This resulted in a net profit of VND350 billion (US$14.93 million) from divesting shares in Eximbank and VND608 billion (US$25.94 million) from MB.
Vietcombank previously divested its shares in a number of credit institutions, including SaigonBank, Cement Finance Company (CFC) and entire shareholding in Orient Commercial Bank (OCB) on September 6.
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Read The Hanoi Times to stay up to date on developments in Vietnam.
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