BIDV increases charter capital after MHB merger
The bank for Development and Investment of Vietnam (BIDV) officially announced a 12% rise in its registered capital from VND28.11 trillion (US$1.30 billion) to VND31.48 trillion (US$1.44 billion).
The increase in registered capital follows its merger with State-owned Mekong Housing Bank (MHB).
On April 25, the State Bank of Vietnam issued Decision No.589/QD-NHNN on the merger. On the same day, the State Security Commission allowed the bank to issue 336.9 million shares, with a combined value of VND3.369 trillion (US$160.43 million), to complete the merger, with every share of MHB converted into a share of the development bank.
BIDV Chairman Tran Bac Ha told a news conference in Hanoi on July 1 that after a month of merger, the bank's operation has been functioning efficiently.
Ha said they can sell stakes to foreign strategic partners next year as the country will surely integrate further into the world economy.
It will sell a 15%-20% stake to one of the long-term foreign investors in the banking sector and 10% to another overseas investor, while state-ownership will be maintained at 65%.
He added that the selling of stakes will have to follow a plan, which is approved by the Government, and should ensure benefits for the State as well as businesses.
The chairman refused to divulge the name of any foreign investor with whom they have been in talks with due to a confidentiality clause, and noted that it will depend on the performances of Vietnam's stock market and its shares.
BIDV made its initial public offering (IPO) in 2011 and listed in Ho Chi Minh City Stock Exchange in 2012. However, the IPO fell into economic crises, affecting the prices of BIDV shares that never reached desired levels.
It has been one of the reasons that the consultancy firm suggested selling their stakes to foreign investors.
During the first half of the year, the economy recovered and GDP was expected to surpass 6.2%.
"Based on these factors, BIDV will complete the selling of its stakes in 2016 for the maximum price as its share prices have been on an increasing trend," he remarked.
Last year, its total assets grew 17.4% year-on-year to about VND45 trillion (US$2.14 billion) and pre-tax profits reached VND162 billion (US$7.71 million), reflecting a year-on-year increase of 14%.
Its deposits jumped 14.4% to more than VND37 trillion (US$1.76 billion) and outstanding loans grew by 13.8% to VND30.60 trillion (US$1.46 billion) in 2014, with the bad debt ratio pegged at 2.72% at the end of the year.
This year, the bank has targeted growth rates at 16.5% for deposits and 16% for lending and will control its bad debt ratio below 2.5%. It also expects to earn VND7.5 trillion (US$357.14 million) in gross profits and pay dividends at 9%.
On April 25, the State Bank of Vietnam issued Decision No.589/QD-NHNN on the merger. On the same day, the State Security Commission allowed the bank to issue 336.9 million shares, with a combined value of VND3.369 trillion (US$160.43 million), to complete the merger, with every share of MHB converted into a share of the development bank.
BIDV Chairman Tran Bac Ha told a news conference in Hanoi on July 1 that after a month of merger, the bank's operation has been functioning efficiently.
Ha said they can sell stakes to foreign strategic partners next year as the country will surely integrate further into the world economy.
It will sell a 15%-20% stake to one of the long-term foreign investors in the banking sector and 10% to another overseas investor, while state-ownership will be maintained at 65%.
He added that the selling of stakes will have to follow a plan, which is approved by the Government, and should ensure benefits for the State as well as businesses.
The chairman refused to divulge the name of any foreign investor with whom they have been in talks with due to a confidentiality clause, and noted that it will depend on the performances of Vietnam's stock market and its shares.
BIDV made its initial public offering (IPO) in 2011 and listed in Ho Chi Minh City Stock Exchange in 2012. However, the IPO fell into economic crises, affecting the prices of BIDV shares that never reached desired levels.
It has been one of the reasons that the consultancy firm suggested selling their stakes to foreign investors.
During the first half of the year, the economy recovered and GDP was expected to surpass 6.2%.
"Based on these factors, BIDV will complete the selling of its stakes in 2016 for the maximum price as its share prices have been on an increasing trend," he remarked.
Last year, its total assets grew 17.4% year-on-year to about VND45 trillion (US$2.14 billion) and pre-tax profits reached VND162 billion (US$7.71 million), reflecting a year-on-year increase of 14%.
Its deposits jumped 14.4% to more than VND37 trillion (US$1.76 billion) and outstanding loans grew by 13.8% to VND30.60 trillion (US$1.46 billion) in 2014, with the bad debt ratio pegged at 2.72% at the end of the year.
This year, the bank has targeted growth rates at 16.5% for deposits and 16% for lending and will control its bad debt ratio below 2.5%. It also expects to earn VND7.5 trillion (US$357.14 million) in gross profits and pay dividends at 9%.