EVN and Maybank commit long-term cooperation with ABBank
Two strategic shareholders namely Electricity of Vietnam (EVN) and Maybank have recently committed long-term cooperation with An Binh Commercial Joint Stock Bank (ABBank) in the future.
The aforementioned information was given at ABBank’s eve annual general meeting (AGM) scheduled to be held in late May. One of the contents at the AGM is to present the bank’s development strategy to 2020, including the long cooperation with two above strategic shareholders.
Tran Thanh Hoa, ABBank’s general director, said both two partners on the same firm commitment of long-term cooperation through investments and support for ABBank’s business development strategy. Both EVN and Maybank will continue to maintain their maximum holding of up to 20 percent in the coming period, as prescribed by law for a legal shareholder.
“In the bank’s long term development strategy, the important content is to cooperative with strategic partners and use their experience to enhance and improve the service quality, banking operations management and risk management. We will continue to strengthen this relationship in a concrete way” Hoa said.
According to the recently announced commitments, EVN will continue to work with ABBank comprehensively in many operation areas of capital and credit, and participate in major projects, collection and expenditure services, financial investment, brand development, payment card for electricity bill and telecommunications charges.
Maybank, Malaysia’s the largest bank, will increase its support for ABBank on the management of personnel and information technology, risk management and corporate administration. Maybank recently helped ABBank establish a supporting board on risk management, to help the local bank operate more effectively. Maybank will also be a bridge for ABBank to join the world capital and monetary markets.
Apart from the two partners, ABBank also has built a relationship with the International Finance Corp (IFC) – a member of the World Bank (WB). IFC has completed its investments of 600 billion of bonds in ABBank and in 2012 these bonds will be converted into shares whereby IFC will officially become a shareholder with the holding of 10 percent stake into the local bank.
As planned, IFC will also join ABBank’s board of director in the future, as well as increase its supports in the field of trade finance. This partner will also support ABBank building monitoring and administration capability, SMEs product development, and support trade guarantee funds through the expansion of the loan portfolio.
At the upcoming AGM, ABBank’s management board expects to submit its 10-year strategy for the period 2011 to 2020. Accordingly, the bank’s goal is to become one of the 10 largest private banks in terms of total assets in Vietnam.
ABBank now has a chartered capital of 4.223 trillion dong. Till the end of April 2011, the bank’s total assets reached 34.969 trillion dong, pre tax profit in Jan-April at 189 billion dong. ABBank also committed to ensure its compulsory reserve ratio at the State Bank of Vietnam (SBV) as well as the bank’s liquidity.
Category: Finance
