Sài gòn-Hà Nội Commercial Bank (SHB) will decide on whether to dissolve or merge its securities firm SHBS on April 21 at the general shareholders meeting.

" />

SHB to dissolve or merge its securities firm

April 16, 2016 - 12:57

Sài gòn-Hà Nội Commercial Bank (SHB) will decide on whether to dissolve or merge its securities firm SHBS on April 21 at the general shareholders meeting.

According to a document to be presented at the meeting, with a relatively low charter capital of VNĐ150 billion (US$6.8 million), SHBS was finding it difficult to match the competition. — File Photo

HÀ NỘI Viet Nam News -— Sài Gòn-Hà Nội Commercial Bank (SHB) will decide on whether to dissolve or merge its securities firm SHBS on April 21 at the general shareholders meeting.

According to a document to be presented at the meeting, with a relatively low charter capital of VNĐ150 billion (US$6.8 million), SHBS was finding it difficult to match the competition.

The bank’s board, which holds a 98.5 per cent stake in the securities firm, had said it would not put anymore money into SHBS.

The board said it would, instead, either merge or dissolve the securities firm to ensure there was adequate capital in the bank. Divestment was also an option.

An SHB representative said they would focus on improving the financial capabilities of the bank and its core business activities.

Sài Gòn-Hà Nội Securities (SHS), also a subsidairy of the bank, announced the merging plan with a securities firm between 2016 and 2017. This caused most local investors to think about the merger between SHBS and SHS.

According to the financial reports, SHBS, which only offers a brokerage service, earned revenue of VNĐ61 billion, down 50 per cent from the previous year and reported a drop of VNĐ2.3 billion in its profit.

If the company is dissolved, it will be the second securities firm to exit the market, after Kim Long Securities Company, once Việt Nam’s fourth-largest firm in terms of market value.

According to a local expert, some more securities firms were expected make an exit in 2016 due to the market’s small scale.

Before 2015, there were more than 100 securities firms. The number of firms that are operational has now reduced to 81.

To boost the competitiveness of the local market, the State Securities Commission will launch a derivative market this year end and complete its plan to merge the two bourses in the country. — VNS

 

E-paper