|
Eximbank prepares 176m share issue
Viet Nam Export Import Commercial Bank(Eximbank) plans to issue 176 million new shares in September to raise its charter capital to VND10.56 trillion (US$555.8 million) from its current VND8.8 trillion ($463.2 million).
Eximbank received the central bank's approval for the share offer on Monday.
The bank said it would issue new shares to existing stockholders at the rate of 20 per cent. It said it would use its capital surplus to fund the issuance.
The capital hike is in line with the bank's development strategy for the 2005-10 period that includes raising its financial capacity and promoting risk management, the bank said.
Last year, the bank raised its charter capital from VND7.2 trillion ($379 million) to VND8.8 trillion ($463.2 million).
In the first six months of this year, Eximbank estimates that it will make a pre-tax profit of VND918 billion ($48.3 million), a year-on-year increase of 12 per cent and equivalent to 42 per cent of the bank's profit target for the whole year, according to a report by the HCM City Securities Company.
The bank's total loans reached VND42 trillion ($2.2 million) in the first half, up 11 per cent from the level at the end of 2009. Total deposits reached VND54 trillion ($2.8 million), a year-on-year increase of 15 per cent. Its total assets are valued at VND73.7 trillion ($3.9 million), up 12 per cent, the report stated.
Though revenue from services in the January - June period increased by 50 per cent over the same period last year, non-credit revenue dropped by 30 per cent due to declines in earnings from gold and securities investment.
Eximbank is targeting 44-per-cent growth in pre-tax profit this year, equivalent to VND2.2 trillion ($115.8 million). It has also set itself the goal of increasing mobilisation by 43 per cent from 2009 to VND67 trillion ($3.5 billion) and outstanding loans by 50 per cent to VND58 trillion ($3.1 billion). Total assets are expected to rise by 33 per cent to VND88 trillion ($4.6 billion).
Eximbank's CEO Truong Van Phuoc said the bank would try to increase profits in other segments including international payment services, the inter-bank market and bonds. It also plans to lower the contribution of its credit operations, which currently made up over 70 per cent of the bank's profits.
Eximbank is currently listed on the HCM City Stock Exchange under the code EIB. Shares closed unchanged at VND19,000 ($1) yesterday.
The stock market is set to receive an influx of newly issued bank shares in the coming time as small financial institutions seek to increase their charter capital to meet the central bank's capital requirements and the capital hike roadmap for large banks, such as Sacombank, Vietinbank and Asia Commercial Bank.
vietnamnews
|
