Tuesday, December 6 2016

VietNamNews

HoSE puts EIB shares on warning list

Update: April, 05/2016 - 10:35

HÀ NỘI (VNS) — HCM Stock Exchange (HoSE) put shares of the Việt Nam Export Import Bank (EIB) on the warning list due to its accumulated losses over two consecutive years.

The exchange said on April 4, 2016 that the bank’s profit after tax in 2014 and 2015 was negative, stating that the undistributed profit of 2014 was adjusted from VNĐ114 billion (US$5.1 million) to minus VNĐ835 billion. The undistributed profit of 2015 was minus VNĐ817.47 billion, according to audited financial statements.

According to the bank, the negative profit over the last two years was caused by the miscalculated sum of VNĐ1.116 trillion from real estate deals between the bank and realty company Eximland between 2010 and 2013. To fix the problem, the bank chose to record these losses in the results from 2014 to 2016, and accumulated losses as a result.

As per the exchange’s regulation, with two years of accumulated losses, stocks of the bank were listed as warning items under which no margin would be made with the shares.

However, bank Chairman Lê Minh Quốc said Eximbank was still healthy. Quốc said that the bank did not have any internal problems.

Quốc said Eximbank reported VNĐ123 trillion in total assets, and capital reached VNĐ101 trillion, an increase of 2.8 per cent from the same term last year. Quốc also estimated a profit of VNĐ500 billion within the period.

Based in HCM City, Eximbank works in raising capital, funds, lending and venturing. It also handles payment and accounting services, trading gold and foreign currencies, as well as the insurance sector.

Last December the bank selected a nine-member board, of which two members represented the bank’s strategic shareholder, Sumitomo Mitsui Banking Corporation (SMBC), a global financial institution from Japan, and one from Vietcombank. The Japanese partner held 15 per cent of stakes, and Vietcombank held 8.2 per cent of stakes in the bank.

Chairman Quốc said he would solve the problem in his term to help the bank bounce back to its leading position in Việt Nam, while YasuhiroSaitoh from SMBC pledged to support the board to develop the bank professionally in a new term.

EIB expected to have the annual general meeting of shareholders on April 29.

Yesterday, shares of EIB ended at VNĐ10,100 on HoSE. — VNS

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