September 22, 2018 02:39

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Banks continuously make capital divestment

12:41 | 16/11/2017

VCN - Banks consecutively make capital divestment to fulfill the objective of reducing cross-ownership in the bank sector.

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Circular 38 stipulates that each credit institution is not permitted to hold capital in more than 2 credit institutions, and the capital in each credit institution shall not exceed 5%

Argribank has announced the selling of Agribank Financial Leasing Company I of which 100% charter capital is held by the bank.

ACLI has a charter capital of 200 billion VND and mainly operates in the financial leasing and other related operations according to the law. Agribank said that investors who have full financial capacity and conditions in accordance with the law could register to buy ALCI at Agribank before 15 December 2017.

By 20 November 2017, Vietcombank will also sell its shares in Cement Financial Company (CFC) at an auction. Accordingly, Vietcombank will auction 6,6 million shares, equal to 10.9% of its charter capital in CFC at starting price of 11,549 VND per share.

CFC was established in 2008 with the beginning charter capital of 300 billion VND. The business operation of CFC is capital mobilization by issue of bill of exchange, bonds, certificate of deposit and valuable documents; through credit operation such as financial leasing and lending, promissory notes, bonds, deposit certificates and other valuable papers; by credit activities such as lending, financial leasing, rediscounting, mortgage of commercial bills, bonds; account opening and treasury transactions; payment and credit support services; and financial services support.

In 2016, the after-tax profit of CFC fell 88.98% from 2015. In the first six months of 2017, it increased 32% from 2016.

At the same time, Vietcombank also auctioned the contributed capital of 132.5 billion VND (13.25 million shares at par value), equivalent to 4.3% of chartered capital at Saigon Bank for Industry and Trade (SaigonBank) at the starting price of 12,550 VND per share.

SaigonBank was the first joint stock commercial bank established in Vietnam in 1987. Over the past years, apart from offering high-quality banking services inconsistency with customers as small and medium enterprises, SaigonBank expanded its activities to individuals, joint venture companies, and foreign enterprises.

The business operation of SaigonBank mainly focuses on mobilizing short-term/medium-term and long-term capital with the term and non-term saving deposits and certificates of deposit. In addition, receiving of capital investment trust of domestic credit institutions; short-term/medium-term and long-term loans; joint venture capital; domestic and international payment services; gold and foreign currency trade; and investment in hotel and catering service.

After-tax profit of SaigonBank in 2016 highly increased compared to 2015 with a growth rate of 223.3%. In the first 6 months of 2017, it also reached nearly the profit level of 2016.

In addition to Vietcombank, Oceanbank will auction 40 billion VND (4 million shares at par value), equivalent to 8% of the outstanding shares in Petroleum Vietnam - SSG Real Estate JSC with the starting price of 10,638 VND per share.

Petroleum Vietnam - SSG Real Estate JSC (PV-SSG), formerly known as Petrovietnam Investment, Construction and Real Estate Services Joint Stock Company, was established on the basis of cooperation between Vietnam Oil and Gas Group and SSG. At present, the shareholders holding the dominant shares of PV-SSG are SSG with 81.2%, shareholders holding over 5% are Oceanbank (8%), and Fecon Infrastructure Joint Stock Company (6%).

The main business of PV-SSG is to invest, construct, manage and operate the complex of five-star hotels, offices, and apartments "on 3.8 hectares of land at X3, Me Tri commune, Tu Liem district, Hanoi (Vietnam Petroleum Hotel Complex Project). After-tax profit of PV-SSG in 2015 and 2016 reached 58 and 30 million VND respectively.

In addition, it is known that in 2018, Vietcombank will divest its capital at Eximbank and MB Bank. At present, Vietcombank still holds capital in 5 units, including 4 banks namely OCB, SaigonBank, Eximbank and MB Bank and a finance company CFC.

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This divestment aims to implement Circular 36 of the State Bank of Vietnam, whereby each credit institution shall not hold capital in more than two credit institutions, and the capital in each institution shall not exceed 5%.

By Khai Ky/ Huyen Trang