Eximbank takes control of Sacombank board

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VietNam News English - 29 month(s) ago 8 readings

Eximbank (EIB) has invested about VND1.6 trillion (US$76.2 million) in Sacombank (STB) and will control Sacombank's board of directors, Eximbank chairman Le Hung Dung said on Sunday at the EIB shareholders meeting.

HA NOI — Eximbank (EIB) has invested about VND1.6 trillion (US$76.2 million) in Sacombank (STB) and will control Sacombank's board of directors, Eximbank chairman Le Hung Dung said on Sunday at the EIB shareholders meeting.

EIB currently holds 9.73 per cent of equity in STB, and Dung said EIB had received authorisation from other shareholders representing a total of 53 per cent of STB's charter capital.

At Sunday's meeting, EIB shareholders also approved the dismissal of Pham Huu Phu from his post as a member of Eximbank's board for the 2010-15 term and nominated him for election to the STB board at the latter bank's shareholders meeting on May 26.

EIB also passed its business plan for this year, under which its charter capital would be increased 9.7 per cent to VND13.6 trillion ($645 million). At the end of the year, total assets would total VND210 trillion ($10 billion), an increase of 4 per cent over the previous year, while deposits would be up 37 per cent to VND100 trillion ($4.76 billion). The bank expected credit growth of 17 per cent to a total of nearly VND87.36 trillion ($4.16 billion), while pre-tax profits would rise 13 per cent to VND4.6 trillion ($219 million).

In response to shareholder concerns that the pre-tax profit target was too low, Dung said the figures were based on market conditions which remained very difficult at this time.

The central bank has put a cap on lending interest rates, and the lending rate was gradually declining, causing bank profit to shrink, added EIB general director Truong Van Phuoc.

This year, EIB also plans to pay a 21.2-per-cent dividend, of which 11.2 per cent would be paid in cash. Last year, Eximbank paid a 14-per-cent cash dividend and expects to pay an additional 5.3 per cent on last year's undistributed profits. — VNS

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