VPBank's shares jumped more than 3.8 per cent on Wednesday, gaining for the third day in a row. — VNS Photo Ly Ly Cao

HÀ NỘI — Việt Nam Prosperity Joint Stock Commercial Bank (VPBank) has just announced an increase of foreign ownership ratio to a maximum of 30 per cent of the bank's charter capital.

The lender said that the official adjustment time will be carried out in accordance with the provisions of law, ensuring the implementation of the private placement plan for foreign investors.

As of September 5, VPBank's foreign room is 16 per cent, while the available ratio is 3.35 per cent. After the adjustment, the foreign ownership ratio at the bank will raise to the maximum level.

Previously, at the 2023 Annual General Meeting of Shareholders, VPBank shareholders approved a private offering plan to foreign strategic investors to increase charter capital, bringing the total foreign ownership ratio to a maximum of 30 per cent of charter capital.

VPBank has offered to sell nearly 1.2 billion of its shares, equivalent to 15 per cent of capital, to strategic investor Sumitomo Mitsui Banking Corporation (SMBC). 

In the first six months of the year, the total revenue of its parent bank declined by 24.1 per cent year-on-year to nearly VNĐ17.5 trillion (US$726.7 million). The parent bank's net profit was VNĐ6.3 trillion, down 48 per cent over last year. 

Despite a positive growth in credit, VPBank's bad debt increased sharply. As of June 30, the bad debt ratio of the parent bank was at 3.87 per cent, up from 2.8 per cent at the end of 2022. Of which, the parent bank's bad debt group 3 and group 4 were 3 and 2 times higher, respectively, compared to the beginning of the year.

On the stock market, the lender's shares are traded on the Hồ Chí Minh Stock Exchange (HoSE) with a ticker symbol of VPB. They traded at VNĐ21,800 a share on Wednesday, an increase of 3.81 per cent. 

After a sharp decline in mid-August, VPB shares have recovered by nearly 22 per cent over the beginning of the year. — VNS