CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietcombank steps up divestments to meet cross-holding limit
Ngoc Thuy 18:32, 2018/09/24
Once completing both auctions, the lender will no longer be a major shareholder in Military Bank (MB) and Vietnam Export Import Commercial Bank (Eximbank).
State-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is stepping up its effort in offloading shares it holds in two other banks, aiming to meet the banking regulation of cross holding limit.
 
Illustrative photo.
Illustrative photo.
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. 

At the annual general meeting in 2018, Nghiem Xuan Thanh, Vietcombank's chairman, informed the bank's intention of divesting capital in other banks, of which Vietcombank holds more than 5% stake, including MB with 6.97% stake or 150.6 million shares and Eximbank 8.24% or 101.2 million shares. 

On September 21, Vietcombank announced its decision to offload 45.6 million shares in Eximbank. At the starting price of VND14,497 (US$0.62) apiece, Vietcombank is expected to book proceeds of at least VND661 billion (US$28.35 million).  

The auction is scheduled to be held on October 22 at the Hanoi Stock Exchange (HNX).

Vietcombank is currently the second largest shareholder at Eximbank, following Sumitomo Mitsui Banking Corp which is holding 15%. VinaCapital's VOF Investment Limited is a minority shareholder with a 4.97% interest.

Similarly, the bank will auction its holding of 53.4 million shares in MB on October 15, expecting a return of VND1.04 trillion (US$44.52 million) for the offering price of VND19,641 (US$0.84) per share. 

Once completing the two mentioned deals, Vietcombank would reduce its holding in the two banks in subject below 5% and no longer be major shareholder in both banks.

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. 

In the first six months of 2018, Vietcombank's pre-tax profit reached VND8 trillion (US$349.4 million), up 53% year-on-year, according to the lender's quarterly consolidated financial statement. 

As of June 30, Vietcombank's total assets were valued at VND977.6 trillion (US$42.7 billion), down 5.6% compared to the beginning of the year, mainly due to the bank's reduction in deposits at the State Bank of Vietnam (SBV) and other credit institutions. 
Comments
Other news
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.