LienVietPostBank has no plans to sell shares to foreign partners: Huong

25-Apr-2012 Intellasia | Infonet | 11:35 AM Print This Post

At the annual general meeting (AGM) 2012 of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) on April 23, Nguyen Duc Huong, the bank’s vice chair, said that in the short term, the bank has no plan to sell shares to foreign strategic partners.

According to Huong, currently, two foreign partners are eying to buy stake into LienVietPostBank but, the bank’s immediate strategy is to strengthen the bank’s network and branches. Therefore, the bank’s director board decided not to sell shares to the foreign partner.

The bank also said that it has no plan to list shares on the stock market as according to the State Bank of Vietnam (SBV)’s Law on Credit Institutions, credit institution that wants to list shares on the stock market must be established for five years while LienVietPostBank has been set up for only four years. Therefore, the bank is also eligible for listing on the stock market.

In 2012, LienVietPostBank will persist implementing its development strategy to switch capital mobilisation from urban to rural areas.

“After the merger with Vietnam Post Corp (VietnamPost), we have changed opinions and seen that the capital mobilisation market from rural area has very potential” Huong said.

Regarding the increasing bad debts issue at Lienvietpostbank last year, Huong explained that the bank’s increasing bad debts were due to inflation and crisis in 2011. Therefore, as of December 31, 2011, the bank’s bad debts ratio was higher than that of previous years but afterward the ratio tended to fall.

Currently the bank is planning to further reduce the non-performing loan (NPL) ratio down to lower levels. Lienvietpostbank has established monitoring unit for the disbursement and strengthened human resources for risk management department chaired by Le Hong Phong.

“In 2012, the bank will control overdue debts at less than 3 percent and bad debts at below 2 percent. The bank will also boost lending to individual customers with high interest rates and lower risk ratio” according to LienVietPostBank’s leader.

At the AGM 2012, the bank’s director board agreed the business plan in 2012 with total assets at 72 trillion dong, rising 28.3 percent on year, pre tax profit at 1.5 trillion dong, up 38.1 percent, chartered capital at over 6.52 trillion dong, up 8.5 percent over the current chartered capital.

The lender also plans a dividend payout of 13-15 percent in 2012.

The bank’s chartered capital increase will be carried out via offering additional shares to the existing shareholders at the ratio of 1 percent from the bank’s capital surplus whereby the bank will issue 6.01 million common shares at the face value of 10,000 dong per share in the second quarter of 2012.


Category: Finance

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