Illustrative image (Photo: Sacombank) Hanoi (VNS/VNA) - Some organisations have rushed tosell shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) toretrieve bad debts, but it was not easy to find buyers agreeing with theoffered price.
Lien Viet Securities JSC (LVS) has recently failed tooffload three million Sacombank shares because of inappropriate marketconditions.
LVS last month registered to sell all three millionSacombank shares via order matching or put-through trading methods from June 18to July 17.
More than a year ago, LVS bought many Sacombank shares. Theaverage market price of Sacombank at the time was about 11,750 VND (0.5 USD)per share.
Earlier in mid-February, Kienlong Commercial Joint-StockBank (Kienlong Bank) put up more than 176.4 million shares of Sacombank forsale at a starting price of 21,600 VND per share to retrieve bad debts.
These 176.4 shares were collateral assets of someindividuals. This is the second attempt by Kienlong Bank to offload Sacombank’sshares since its failure at the end of January.
If the sale is successful, Kienlong Bank will collect morethan 3.8 trillion VND.
Compared to the previous offering, Kienlong Bank hasdiscounted the share price by 10 percent. However, the price of 21,000 VND wasstill nearly double the transaction price of Sacombank shares on the stockmarket at the time.
However, between the end of February and early March, theCOVID-19 pandemic made it difficult for Kienlongbank to execute the plansuccessfully.
Kienlongbank's credit risk provisions in the first sixmonths of this year was 3.2 times higher than the same period last year,reaching 79 billion VND, mainly due to the provision for loans of a group ofcustomers that have secured assets as STB shares.
The Vietnam Export Import Commercial Bank (Eximbank) alsoplans to sell nearly 75 million shares of Sacombank to retrieve debts.
According to the report of Eximbank's Supervisory Board, theratio of outstanding securities loans as of December 31, 2019 was 6.04 percent,higher than the maximum level of 5 percent. Most of the loans were overdueloans of seven customers having mortgages as Sacombank shares to buy Eximbankshares, with a total loan balance of 746 billion VND.
Sacombank's pre-tax profit reached 440 billion VND in Q2this year, up 10.13 percent over the same period last year. In the first six months,pre-tax profit touched 1.4 trillion VND, down by 2.2 percent year-on-year.
As of June, Sacombank's total assets reached 481.9 trillionVND, up 6.2 percent compared to the beginning of this year. Outstanding loansincreased by nearly 5 percent to 310.7 trillion VND. Customer deposits rose by6.33 percent to 426.2 trillion VND.
The bad debts on the balance sheet on June 30 stood at 6.68trillion VND, up by nearly 950 billion VND from the beginning of this year, orup nearly 17 percent./.
Lien Viet Securities JSC (LVS) has recently failed tooffload three million Sacombank shares because of inappropriate marketconditions.
LVS last month registered to sell all three millionSacombank shares via order matching or put-through trading methods from June 18to July 17.
More than a year ago, LVS bought many Sacombank shares. Theaverage market price of Sacombank at the time was about 11,750 VND (0.5 USD)per share.
Earlier in mid-February, Kienlong Commercial Joint-StockBank (Kienlong Bank) put up more than 176.4 million shares of Sacombank forsale at a starting price of 21,600 VND per share to retrieve bad debts.
These 176.4 shares were collateral assets of someindividuals. This is the second attempt by Kienlong Bank to offload Sacombank’sshares since its failure at the end of January.
If the sale is successful, Kienlong Bank will collect morethan 3.8 trillion VND.
Compared to the previous offering, Kienlong Bank hasdiscounted the share price by 10 percent. However, the price of 21,000 VND wasstill nearly double the transaction price of Sacombank shares on the stockmarket at the time.
However, between the end of February and early March, theCOVID-19 pandemic made it difficult for Kienlongbank to execute the plansuccessfully.
Kienlongbank's credit risk provisions in the first sixmonths of this year was 3.2 times higher than the same period last year,reaching 79 billion VND, mainly due to the provision for loans of a group ofcustomers that have secured assets as STB shares.
The Vietnam Export Import Commercial Bank (Eximbank) alsoplans to sell nearly 75 million shares of Sacombank to retrieve debts.
According to the report of Eximbank's Supervisory Board, theratio of outstanding securities loans as of December 31, 2019 was 6.04 percent,higher than the maximum level of 5 percent. Most of the loans were overdueloans of seven customers having mortgages as Sacombank shares to buy Eximbankshares, with a total loan balance of 746 billion VND.
Sacombank's pre-tax profit reached 440 billion VND in Q2this year, up 10.13 percent over the same period last year. In the first six months,pre-tax profit touched 1.4 trillion VND, down by 2.2 percent year-on-year.
As of June, Sacombank's total assets reached 481.9 trillionVND, up 6.2 percent compared to the beginning of this year. Outstanding loansincreased by nearly 5 percent to 310.7 trillion VND. Customer deposits rose by6.33 percent to 426.2 trillion VND.
The bad debts on the balance sheet on June 30 stood at 6.68trillion VND, up by nearly 950 billion VND from the beginning of this year, orup nearly 17 percent./.
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