With over 85.2 percent of Habubank’s voting shares approving the plan, the merger ratio between Habubank share, coded HBB , and SHB, coded SHB, will be 1:0.75.
The new bank, the result of the merger, will taken the name of SHB with chartered capital of VND8.865 trillion ($425.6 million).
It will not raise capital and pay dividends in the next 2-3 years.
After the merger, the new bank’s total assets will be VND123.724 trillion with capital adequacy ratio of 13.22 percent, total outstanding loans at over VND 51 trillion, the return on equity and asset rate (ROE, ROA) at 14.9 percent and 1.16 percent respectively.
As of early March, the capital of HBB was at VND195 billion.
As of February 29, the total rate of bad debts under the Vietnam auditing standards of HBB was above 16 percent.
HBB’s total assets was VND36.855 trillion, while its total liabilities were at VND33.112 trillion and chartered capital was at VND3.741 trillion. Its pre-tax profit was negative VND649 billion.
But the rate doubled if it is based on special assessment in accordance with greatest potential risk.
In this case, HBB’s total assets decreased to VND33.3 trillion, while total liabilities were at VND33.112 trillion and pre-tax profit slumped to a negative VND4.197 trillion.
Among HBB's bad debts, debt-stricken shipbuilder Vinashin accounted for some VND4 trillion.