Vietnam International Bank plans merger, puts listing plan on hold

Vietnam International Bank (VIB), has affirmed a merger possibility but clarified that the partner must be a healthy, transparent credit institution.

VIB chairman Dang Khac Vy acknowledged that M&A was an essential need to increase the size of the bank. “For years, we have been operating VIB in a transparent way. Thus, when we find another partner with clear financial data and management information, the merger is not put at risk,” said Vy during the bank’s shareholder meeting on Friday.

The plan to list the shares, which was mentioned several years ago, has been put on hold.

The bank explained further that its priority last year was to expand network and products, as VIB’s capital adequacy ratio (CAR) was relatively high at 17 per cent, and the bank was not in a hurry to raise more funding.

“In 2016 at the earliest, the listing process will be executed,” Vy added.

The Commonwealth Bank of Australia, which is VIB’s strategic partner, with about a 20 per cent stake, in it, said it wanted VIB to list. However, the timing is important, as the Vietnamese bank will have to use the capital raised from the stock market, to generate sustainable profit.

In 2014, VIB profit was estimated at VND648 billion ($30.14 million). The Hanoi headquartered bank targets to increase the figure by one per cent, while total asset is expected to rise 9 per cent to VND88.25 trillion ($4.1 billion), this year. This value is at the same level with other banks, except for the four giants in assets Vietnam Bank for Agriculture and Rural Development, or Agribank, the Bank for Investment and Development of Vietnam, Vietcombank and Vietinbank.

It is also planning two possibilities of credit growth, either increasing 11 per cent to VND42.38 trillion ($1.97 billion) or 27 per cent to VND48.53 trillion ($2.26 billion). The lower target was approved by the State Bank of Vietnam, while the latter, according to the chairman, is more relevant to the bank’s current performance.

Its non-performing loan ratio was reduced from 2.82 per cent to 2.51 per cent within the year 2014 and is expected to stay stable in 2015.

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Vietnam consolidates banks to form regional lenders

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.