The successful merger deal between Saigon Hanoi Commercial Joint Stock Bank (SHB) and Hanoi Building Commercial Joint Stock Bank (Habubank-HBB) will form a financial institution with a chartered capital of nearly nine trillion dong, scale of total assets at over 100 trillion dong (as of February 29, 2012), a network system of up to 242 branches and transaction sites and a team of nearly 4,600 staff.
After the merger, SHB will also become one of top ten largest commercial banks in Vietnam in terms of capital scale and total assets.
SHB confirmed Habubank’s loss, according to re-assessment of auditing agency, as of February 29, 2012 was nearly 4.067 trillion dong.
The director board of Habubank and SHB has offered specific solutions such as building sufficient risk provision fund for loans and bonds of Vietnam Shipbuilding Industry Group (Vinashin) with 2.236 trillion dong in five years, equalling to 447.2 billion dong each year.
Thus, the accumulated loss of Habubank as of February 29, 2012 was only 1.829 trillion dong that will be transferred to the merged bank with the name of SHB.
Reportedly, the stock swap ratio for the merger will be done as follows: one share of Habubank will be swapped for 0.75 share of SHB (stock of the merged bank) (at the face value of 10,000 dong each); one SHB share will receive additional 0.21 share of SHB (stock of the merged bank).
After the merger, in 2012, shareholders of SHB (according to the list closed before the merger) will receive additional 0.21 share.
In 2012, the merged bank targets to reach 132.172 trillion dong total assets, pre tax profit at 1.85 trillion dong and in 2013, and the merged bank would gain growth at 14-20 percent and it would be 19-20 percent by 2014.