Techcombank wants no foreign ownership

In its latest announcement to shareholders on August 30, even as Techcombank asked for approval for a temporary zero percent foreign ownership, it emphasised that adjustments would be made soon. It expressed its intention to raise the level of foreign ownership later, but not higher than 30 percent of its charter capital.

The deadline for shareholders’ feedbacks has been set at 17:00 hours on September 12.

After HSBC’s departure, Techcombank intends to actively seek a capable strategic investor in the near future.

Back in mid August, HSBC sold back all 172 million shares to Techcombank, to be used as treasury stocks at 23,445 VND (1.04 USD) per share, according to the bank’s board of directors. The shares previously amounted to 19.4 percent of Techcombank’s chartered capital, and is now priced at a total of around 4 trillion VND (178.1 million USD).

Recently, Techcombank submitted a plan to the State Securities Commission (SSC) for permission to issue another 500 million shares (stock code TCB) so as to increase its chartered capital. These shares are to be sold in two phases, with 70 million shares up for sale at 30,000 VND (1.33 USD) per share during phase one from September to October, or whenever the SSC permits.

Phase two would see the sale of the remaining 430 million shares; its rate will be decided later by the bank’s board of directors, based on results of the first phase.

If both phases are successful, Techcombank will have increased its total chartered capital to 13.87 trillion VND (617.8 million USD).

Currently, Techcombank’s shares are being traded at 24,500 VND (1.09 USD) per share. As of August, it had purchased 172 million treasury stocks at an average price of 23,445 VND (1.04 USD) per stock. Because of this mass repurchase at a lower price than its book value, the banks’ shares are now gaining.

As per its financial report for the second quarter of 2017, Techcombank has earned a pre-tax revenue of 2.73 trillion VND (121.6 million USD), making a net gain of up to 355 billion VND (15.8 million USD) from the sale of 25.56 million shares of Vietnam Airlines.

Nevertheless, the bank’s receivables now amount to 12.68 trillion VND (564.8 million USD), having increased by 1.86 trillion VND (82.8 million USD) since the beginning of the year.

In the first six months of 2017, Techcombank reported total uncollectible debts of 2.74 trillion VND (122 million USD), a 1.57 percent rise from the end of 2016. The bank has also sold around 1.99 trillion VND (88.6 million USD) worth of bad debts to the Vietnam Asset Management Company.

Techcombank’s board of directors has guaranteed its shareholders that it will strictly implement all necessary procedures in time, and under the supervision of the appropriate administrative authority.