The bank for Development andInvestment of Vietnam (BIDV) officially announced a 12 percent rise inits registered capital from 28.11 trillion VND (1.30 billion USD) to31.48 trillion VND (1.44 billion USD).
The increase in registered capital follows its merger with State-owned Mekong Housing Bank (MHB).
OnApril 25, the State Bank of Vietnam issued Decision No.589/QD-NHNN onthe merger. On the same day, the State Security Commission allowed thebank to issue 336.9 million shares, with a combined value of 3.369trillion VND (160.43 million USD), to complete the merger, with everyshare of MHB converted into a share of the development bank.
BIDVChairman Tran Bac Ha told a news conference in Hanoi on July 1 thatafter a month of merger, the bank's operation has been functioningefficiently.
Ha said they can sell stakes to foreign strategicpartners next year as the country will surely integrate further into theworld economy.
It will sell a 15-20 percent stake to one of thelong-term foreign investors in the banking sector and 10 percent toanother overseas investor, while state-ownership will be maintained at65 percent.
He added that the selling of stakes will have tofollow a plan, which is approved by the Government, and should ensurebenefits for the State as well as businesses.
The chairmanrefused to divulge the name of any foreign investor with whom they havebeen in talks with due to a confidentiality clause, and noted that itwill depend on the performances of Vietnam's stock market and itsshares.
BIDV made its initial public offering (IPO) in 2011 andlisted in HCM City Stock Exchange in 2012. However, the IPO fell intoeconomic crises, affecting the prices of BIDV shares that never reacheddesired levels.
It has been one of the reasons that the consultancy firm suggested selling their stakes to foreign investors.
During the first half of the year, the economy recovered and GDP was expected to surpass 6.2 percent.
"Basedon these factors, BIDV will complete the selling of its stakes in 2016for the maximum price as its share prices have been on an increasingtrend," he remarked.
Last year, its total assets grew 17.4percent year-on-year to about 45 trillion VND (2.14 billion USD) andpre-tax profits reached 162 billion VND (7.71 million USD), reflecting ayear-on-year increase of 14 percent.
Its deposits jumped 14.4percent to more than 37 trillion VND (1.76 billion USD) and outstandingloans grew by 13.8 percent to 30.60 trillion VND (1.46 billion USD) in2014, with the bad debt ratio pegged at 2.72 percent at the end of theyear.
This year, the bank has targeted growth rates at 16.5percent for deposits and 16 percent for lending and will control its baddebt ratio below 2.5 percent. It also expects to earn 7.5 trillion VND(357.14 million USD) in gross profits and pay dividends at 9 percent.-VNA
The increase in registered capital follows its merger with State-owned Mekong Housing Bank (MHB).
OnApril 25, the State Bank of Vietnam issued Decision No.589/QD-NHNN onthe merger. On the same day, the State Security Commission allowed thebank to issue 336.9 million shares, with a combined value of 3.369trillion VND (160.43 million USD), to complete the merger, with everyshare of MHB converted into a share of the development bank.
BIDVChairman Tran Bac Ha told a news conference in Hanoi on July 1 thatafter a month of merger, the bank's operation has been functioningefficiently.
Ha said they can sell stakes to foreign strategicpartners next year as the country will surely integrate further into theworld economy.
It will sell a 15-20 percent stake to one of thelong-term foreign investors in the banking sector and 10 percent toanother overseas investor, while state-ownership will be maintained at65 percent.
He added that the selling of stakes will have tofollow a plan, which is approved by the Government, and should ensurebenefits for the State as well as businesses.
The chairmanrefused to divulge the name of any foreign investor with whom they havebeen in talks with due to a confidentiality clause, and noted that itwill depend on the performances of Vietnam's stock market and itsshares.
BIDV made its initial public offering (IPO) in 2011 andlisted in HCM City Stock Exchange in 2012. However, the IPO fell intoeconomic crises, affecting the prices of BIDV shares that never reacheddesired levels.
It has been one of the reasons that the consultancy firm suggested selling their stakes to foreign investors.
During the first half of the year, the economy recovered and GDP was expected to surpass 6.2 percent.
"Basedon these factors, BIDV will complete the selling of its stakes in 2016for the maximum price as its share prices have been on an increasingtrend," he remarked.
Last year, its total assets grew 17.4percent year-on-year to about 45 trillion VND (2.14 billion USD) andpre-tax profits reached 162 billion VND (7.71 million USD), reflecting ayear-on-year increase of 14 percent.
Its deposits jumped 14.4percent to more than 37 trillion VND (1.76 billion USD) and outstandingloans grew by 13.8 percent to 30.60 trillion VND (1.46 billion USD) in2014, with the bad debt ratio pegged at 2.72 percent at the end of theyear.
This year, the bank has targeted growth rates at 16.5percent for deposits and 16 percent for lending and will control its baddebt ratio below 2.5 percent. It also expects to earn 7.5 trillion VND(357.14 million USD) in gross profits and pay dividends at 9 percent.-VNA
