VPBank Express services. Among the listed banks, Vietnam Prosperity Commercial Joint Stock Bank (VPB) has been the strongest performer since the beginning of this year. — Photo VPBank
HÀ NỘI — Bank stock prices have witnessed a dramatic increase since the end of March after plenty of banks announced positive first-quarter business results, as well as news on rising mergers and acquisitions (M&A).
Among the listed banks, Vietnam Prosperity Commercial Joint Stock Bank (VPB) has been the strongest performer in the stock market since the beginning of this year. VPB closed the trading session on December 31 at VNĐ32,500 (US$1.41) per share, it now is being traded at VNĐ67,600 per share, equivalent to an increase of 108 per cent.
VPB's gain was attributed to the news that VPBank has sold 49 per cent of its charter capital at FE Credit to Japan’s SMBC Group at a valuation of $2.8 billion. VPB shares are also attractive thanks to its leading position in the consumer finance segment and the private placement plan for foreign strategic partners.
Liên Việt Post Commercial Joint Stock Bank (LienVietPostBank) has also witnessed an increase of more than 104 per cent since the beginning of this year, currently trading at VNĐ25,400 per share.
Nguyễn Đức Thụy, a founding shareholder of Thaiholdings Joint Stock Company (THD), has officially been elected as Vice Chairman of the Board of Directors of LienVietPostBank since early May.
After less than a year after listing, the market price of THD has increased 13 times, from the reference price on the first trading day of VNĐ15,000 per share to VNĐ197,100 per share on May 26 this year.
At LienVietPostBank's 2021 Annual General Meeting of Shareholders held at the end of April, shareholders shared that they hope the same gain will also happen to the bank’s shares.
Saigon Thương Tín Commercial Joint Stock Bank (Sacombank) also underwent an increase of more than 74 per cent since the beginning of this year. Vietnam International Commercial Bank (VIB) rose by 94 per cent compared to the end of 2020; Southeast Asia Commercial Joint Stock Bank (SSB) gained by 84 per cent so far this year and has maintained its upward momentum after two months of listing on HOSE.
National Commercial Joint Stock Bank (NVB) witnessed an impressive increase of more than 80 per cent and Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG) rose 49 per cent so far this year.
In a recent report, SSI Securities Joint Stock Company said that banks’ plan to raise charter capital can be a supportive factor for the movement of bank stock prices from now until the end of 2021.
In 2021, there are about 16 banks with plans to increase their charter capital significantly, according to the report. Specifically, charter capital at these banks will be increased by VNĐ82.7 trillion, up 31 per cent compared to 2020. Of the estimate, about 75 per cent will be increased through stock split; 22 per cent from private placement and the rest is through the employee stock ownership plan (ESOP).
From 2020, the State Bank will tighten the payment of cash dividends by banks. Instead, the State Bank encourages them to pay dividends in stock. — VNS