State-owned Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) this week announced it plans to divest its holding in Saigon Bank for Industry and Trade (Saigonbank).

Saigonbank’s total assets by the end of June rose by 5.35 per cent to over VND20.72 trillion (US$885 million). — Photo Saigonbank

Accordingly, VietinBank’s board of directors approved a plan to auction more than 15.12 million shares of Saigonbank, equal to 4.91 per cent of the latter’s charter capital.

The starting price of the shares and the timing for the auction haven’t been disclosed yet.

Earlier, in 2016, VietinBank offloaded nearly 17 million shares of Saigonbank, or 5.48 per cent of the bank’s charter capital, at a starting price of VND10,800 (46 US cents) apiece.

Saigonbank’s total assets by the end of June rose by 5.35 per cent to over VND20.72 trillion (US$885 million). The bank’s mobilised capital reached VND17 trillion, up 7.63 per cent year-on-year, while its outstanding loans were VND13.85 trillion, up 5.7 per cent. Notably, the bank’s non-performing loans accounted for 6.48 per cent of its total outstanding loans.

In the first half of 2018, Saigonbank posted pre-tax profit of VND112 billion, down 30.2 per cent year-on-year, but still meeting 75 per cent of the bank’s profit target set for 2018. The decline was mainly due to a high provision of VND78 billion for risky loans.

Meanwhile, Viet Dragon Securities Corporation (VDSC) forecast VietinBank’s pre-tax profit will reach VND10.1 trillion in 2018 after the bank’s profit rose by 9.39 per cent to VND5.26 trillion in the first half.

Besides a 64.46 per cent stake holding by the State, Bank of Tokyo-Mitsubishi UFJ is currently the largest strategic shareholder of VietinBank, holding 19.73 per cent of the bank’s charter capital. IFC Capitalization Equity Fund and International Finance Corporation also hold 5.39 per cent and 2.63 per cent, respectively. — VNS

Source: Bizhub.vn

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