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FinanceAsia honors 5 financial institutions in Vietnam
Hong Kong-based FinanceAsia magazine has announced its annual Country Awards for Achievement for Vietnam honoring 6 domestic and foreign financial institutions for their achievements in 2010.
They include Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Saigon Securities (SSI), VietCapital Securities (VCS), HSBC and Citi.
Techcombank tops the two important categories of FinanceAsia awards including Best Bank and Best Cash Management Bank - Best Trade Finance Bank.
The bank, said FinanceAsia, is one of the fastest growing commercial banks in Vietnam which swiftly expanded its network by opening 94 new branches and an extensive network spanning nearly 300 branches and more than 1,000 ATMs during the period under review.
It also has a solid partnership with HSBC, which has a 20 percent stake and gives it an edge in retail and finance and in risk management. Both its total loans and total deposits grew by a 61 percent and 76 percent respectively in 2010, while its non-performing loan ratio has reduced to a 2.29 percent ratio in 2010 compared with 2.49 percent in 2009.
For the first time, profit before tax of Techcombank exceeded $100 million as of the end of 2010, which enabled it to maintain the top position among commercial joint stock banks. It now serves more than 45,000 enterprise and 1.3 million individuals in the country, an increase of 17 percent and 62 percent respectively compared with 2009.
Its aggressive plans for the rest of 2011 include reducing its NPL ratio to 2.04 percent and expanding to 360 branches.
SSI was honored by FinanceAsia as Vietnam’s Best Investment Bank - Best Broker.
In terms of capital raising services, SSI raised more than VND6.7 trillion from the market during the period under review, 48 percent of which came from bond issuance.
It advised on five corporate bond issuance deals and it was the domestic financial adviser on the $90 million offering by Hoang Anh Gia Lai, which was the first and largest cross-border Vietnamese bond issuance.
At the same time, it raised VND3.5 trillion in equity issuance, a 21 percent increase during the same period under review last year. It also listed 11 companies.
On the M&A front, it advised the buy-sides on two non-controlling deals in the port industry and oil and gas industry.
SSI continues to dominate the brokerage story in Vietnam with strengthened relationships with large local and foreign financial institutions, as well as local listed and unlisted companies, said FinanceAsia, though a nod should be given to ThangLong Securities, which is increasingly building its business.
VietCapital Securities was recognized as Vietnam’s Best Equity House.
It was the lead adviser for the IPO of PetroVietnam Gas, as well as its privatization and strategic placement with Morgan Stanley. While the IPO only sold 3.5 percent of the company, or $90 million, the privatization of PV Gas was the largest in the history of Vietnam to date.
VietCapital Securities was also the sole adviser and manager for four other privatizations and IPOs – for An Giang Electricity and Water, Binh Dien Fertilizer, An Giang Export and Import and My Thoi Port.
Furthermore, VietCapital Securities, which also produces excellent research reports, has been building a solid relationship with foreign investors including the handling of a private placement of Vinamilk, which is arguably the most sought after company in Vietnam by foreign investors.
HSBC won Vietnam’s Best Foreign Commercial Bank award because its banking decisions may be good for Vietnam, said FinanceAsia.
HSBC has made a conscious decision to bank Vietnam’s middle and large corporate segment, focusing on those that are actively involved in international trade. The bank has taken the view that these companies will grow and remain loyal to HSBC.
This year, HSBC was closely rivaled by Citi, which has grown its business significantly in Vietnam.
On the consumer front, both HSBC and Citi are leading by offering internet banking solutions, and hats off to Citi for launching one of its new-fangled smart banking branches in Ho Chi Minh.
But Citi also did grasp the Best Foreign Investment Bank award this year for banking many of the multinationals doing business in Vietnam, and handles a huge percentage of the remittances from the US that have been critical to growing the nation’s economy in recent years.
Citi also brought some foreign interest to Vietnam, working as the exclusive financial adviser to Diageo on its $55 million acquisition for a 24.9 percent strategic stake in Halico, Vietnam’s largest alcohol producer.
It also raised close to $3 billion from the capital markets during the period under review, including National Power Transmission’s $200 million insured-term financing, Vietnam Airlines’ $400 million ECA-backed term loan and Nhon Trach 2 Power’s $470 million loan.
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