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VietNamNews

Vietcombank merger news expected

Update: April, 15/2014 - 09:06
Photo vietstock.vn

HA NOI (VNS)  — Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank), one of the nation's biggest banks, is expected to ask its stakeholders at the meeting next week about a merger with a credit institution whose name remains a secret, Ban Viet Securities revealed on Friday.

The meeting documents posted on Vietcombank's website do not mention this deal. Vietcombank had total assets of VND469 trillion (US$22.23 billion) as of the end of last year, an increase of more than 13 per cent over the previous year, according to its audited financial report.

Vietcombank's pre-tax profit for last year reached VND5.743 trillion ($273.4 million), meeting approximately 99 per cent of the target. With the economic situation improving, the management board proposed aiming for pre-tax profits of VND5.5 trillion ($261.9 million) this year, slightly lower than last year.

Japan's Mizuho Bank is now the strategic stakeholder of Vietcombank with a 15 per cent stake. Vietcombank also holds stakes between 4 and 10 per cent in Military Bank, Eximbank, Phuong Dong Bank and Sai Gon Bank.

If Vietcombank's deal is announced, the banking sector will witness at least four mergers and acquisitions this year as part of the restructuring process.

PGBank, a member of Petrolimex, may sell 99 per cent of its stake to Vietinbank. The sale will be discussed at the annual shareholder meeting this Friday.

At a meeting last month, Sacombank shareholders agreed to the bank's plan to merge with Southern Bank, which will be implemented this year. The merger of Mekong Housing Bank and Maritime Bank has also attracted attention. — VNS

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