Newly-merged bank unveils official name

The new name was agreed on by the three banks’ shareholders in an unusual meeting yesterday.

On December 6, Ficombank, TinNghiaBank and Saigon Commercial Bank (SCB) became the first three banks to be merged, as the central bank began to implement its banking reform plan.

The newly-merged bank -- or Saigon Commercial Bank from now on -- has a total registered capital of VND10.58 trillion (US$507.8 million), equaling 1,058 shares, and total assets worth VND153.62 trillion.

During the merger process, all shares of the three banks will be converted into the new bank’s stocks with their values remaining unchanged.

The newly-merged SCB will file documents to seek approval for the merger from the State Bank of Vietnam.

Nguyen Hoang Minh, deputy director of the HCMC branch of the central bank, said the institution will facilitate the merger in order to protect depositors’ rights.

SCB has also been allowed to hold a shareholder meeting on December 23 to discuss future development plans.

The new bank is expected to target a VND667-billion post-tax profit next year, and VND1.18 trillion and VND1.86 trillion in the next two years, respectively.

It also aims to hike registered capital to VND16 trillion in 2014, 37.5 percent of which will be held by new shareholders.