VietBank to trade on UPCoM
VietBank to trade on UPCoM
The Hanoi Stock Exchange (HNX) has just announced approving VietBank (Vietnam Thuong Tin Commercial Joint Stock Bank), which is valued at VND6.28 trillion ($273.26 million), to trade on the UPCoM with the code VBB from July 30.
VietBank registered to trade over 419 million shares, equivalent to the charter capital of VND4.19 trillion ($182.17 million). The price at the first session will be VND15,000 ($0.65) per share. The trading band on the first day on UPCoM is ± 40 per cent, so the stock will fluctuate in the range of VND9,000-21,000 ($0.39-0.91) per share.
VietBank is a rural bank established in December 2006 with the initial charter capital of VND200 billion ($8.7 million). The founding shareholders include groups related to Hoa Lam Corporation, Nguyen Duc Kien's family who are major shareholders of VietBank), and Dieu Hien Trading Construction Co., Ltd.
The shareholder structure of VietBank has also changed. Nguyen Duc Kien’s family (including Kien, his younger sisters Nguyen Thuy Lan and Nguyen Thuy Huong, brother-in-law Dao Van Kien, father-in-law Dang Cong Minh, and mother-in-law Nguyen Thi Kim Thanh) have withdrawn their shares worth more than 10 per cent of VietBank's capital. Only Dang Ngoc Lan (Kien’s wife) retained her 4.6 per cent of the capital. However, even Lan withdrew from the Board of Directors from January 18.
According to the 2018 annual report, VietBank does not have major shareholders. The bank has nine organisations holding 32.48 per cent of its capital, with the rest belonging to 258 individual shareholders.
In 2018, the bank's pre-tax profit reached VND401 billion ($17.43 million), 1.5 times higher than in the previous year. In the first six months of this year, the bank had a pre-tax profit of nearly VND250 billion ($10.87 million), an increase of 24 per cent vis-a-vis to 2018.
Total assets at the end of this second quarter were over VND56.6 trillion ($2.46 billion). In 2019, VietBank set a target of 25 per cent increase in pre-tax profit to reach over VND500 billion ($21.74 million), keeping non-performing loan (NPL) ratio below 2 per cent, and achieving a credit growth of 5.9 per cent (about VND37.59 trillion – $1.63 billion).
