The undercurrent of banks’ hot seats during AGM season

31-Mar-2018 Intellasia | DTCK | 6:00 AM Print This Post

The top positions of many banks such as Chair of the Board of directors (BOD), members of the BOD or Chief Executive Officer (CEO) seem to have been settled before the Annual general Meeting (AGM) season as most banks have early announced changes (if any). However, it is perhaps just the tip of the iceberg.

On April 20th, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, STB) will hold its 2018 AGM to select two additional members of the BOD for 2017-2021 term, including one independent member. This change is needed as Sacombank’s Standing vice Chair of BOD Kieu Huu Dung resigned for personal reason and was approved by the bank’s BOD. The notable point is that Dung was elected as a member of the BOD for the term 2017-2021, which ends in three years.

According to the plan, Sacombank’s BOD will submit shareholders the dismissal of the bank’s member of BOD to Dung at the 2018 AGM. Dung currently owns 300,000 STB shares, equivalent to 0.02 percent of the bank’s charter capital.

There are six members in Sacombank’s current BOD, including Duong Cong Minh Chair, Kieu Huu Dung Standing vice Chair, Pham Van Phong vice Chair, Nguyen Mien Tuan member, Nguyen Xuan Vu member, and Le Thi Hoa independent member.

In the recent time, the top leaders of Sacombank, particularly Duong Cong Minh, has continuously raised STB shares with the aim to increase the voting rate at the bank.

Meanwhile, the AGM of Export Import Commercial Joint Stock Bank (Eximbank) is expected to take place on April 27th. With the current four candidates, shareholders will have to choose two of those to join the bank’s BOD. According to a credible source, of the four candidates for Eximbank’s BOD election this time, there are familiar faces that used to run for the bank two years ago. Eximbank’s BOD currently has nine members, including Le Minh Quoc Chair, Dang Anh Mai vice Chair, Yasuhiro Saitoh vice Chair, and other members including Nguyen Quang Thong, Hoang Tuan Khai, Ngo Thanh Tung, Cao Xuan Ninh, Le Van Quyet and Yukata Moriwaki.

In fact, the high-level management issue has been hot at Eximbank since 2015 and so far there has been no sign of stability. Previously, Eximbank has several times failed to hold its AGMs for not reaching consensus of shareholders in the selection of BOD’s members, because the candidates of the group of big shareholders were not allowed to run for election. Up to now, Eximbank has not released its 2018 business plan to be submitted to shareholders at the coming AGM. In 2017, the bank attained one trillion dong of pre-tax profit with declining bad debt ratio. The divestment in Sacombank in the end of 2017 and early 2018 brought Eximbank an income of up to 500 billion dong.

On March 28th, Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) will hold its 2018 AGM. The noting point is that the bank will change its BOD and Board of Supervisors (BOS) for the new term of 2018-2023. In the resolution, the BOD clearly stated that it will choose eight members for the BOD and three members for the BOS on the new term. The bank’s current Chair of the BOD is Nguyen Duc Huong, who will resign from the top position at this AGM, due to health reason. Huong used to be LienVietPostBank’s general director many years ago and from June 2017, at the extraordinary shareholders meeting, he was elected as Chair of the BOD to replace Duong Cong Minh. The position of general director was assigned to Pham Doan Son, who is concurrently the bank’s Standing vice Chair of BOD. The bank’s Chief of the BOS is Tran Thanh Tung.

Kien Long Commercial Joint Stock Bank (Kienlongbank) is also re-electing its BOD and BOS for 2018-2022 term. The bank has planned to get shareholders’ opinions and will hold the AGM in April. Kienlongbank’s current Chair of BOD is Vo Quoc Thang, vice Chair cum general director is Vo Van Chau, and Chief of BOS is Le Khac Gia Bao. The bank has appointed Tran Tuan Anh as general director from the position of deputy general director.

Similarly, Nam A Commercial Joint Stock Bank (NamA Bank) has selected Tran Ngoc Tam as general director at the age of 45 from deputy general director position.

In fact, banking personnel will not only fluctuate in the above banks, but also is forecasted to continue changing in the near future under the provisions of the revised Law on Credit Institutions. The law took effect from January 15th 2018, requiring Chair and members of the BOD, general director of credit institutions to not concurrently hold equivalent titles at other enterprises. This provision has made many bank leaders to choose whether to stay at banks or to move to the enterprises.

Many bank leaders are in that situation, but until now, although the law has come into effect, only a few of them have officially made their choices, such as Duong Cong Minh (Sacombank), Do Quang Hien (Saigon Hanoi Commercial Joint Stock Bank, SHB), Do Minh Phu (Tien Phong Commercial Joint Stock Bank, TPBank), or Thai Huong (Bac A Commercial Joint Stock Bank, BacABank). Many other leaders at KienlongBank, Southeast Asia Commercial Bank, An Binh Bank, Hochiminh city Development Bank, or Viet A Commercial Bank, etc. are still holding concurrently.


Category: Finance, Vietnam

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