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Banking & Finance

Techcombank and VIB will trade on UPCoM

Released at: 11:30, 15/12/2016

Techcombank and VIB will trade on UPCoM

Photos: VIB/Viet Tuan

Profits and share bonuses increase dramatically for both banks.

by Hung Nguyen - Duy Anh

Vietnam International Bank (VIB) and Vietnam Technological and Commercial Bank (Techcombank) have been allowed to trade on Vietnam’s UPCoM – the nation’s unlisted market.

The Vietnam Securities Depository (VSD) has granted the trading code of VIB to the bank for floating a total of 654.44 million shares to be traded on UPCoM. Techcombank will also have the securities code TCB and will float a total of around 887.8 million shares also being traded on UPCoM.

With par value per stock at VND10,000 ($0.44) and charter capital of TCB at VND8.88 trillion ($394.6 million) and VIB at VND5.64 trillion ($248.21 million), making TCB and VIB currently the fourth and fifth largest capitalization stock on UPCoM by December 14.

VIB increased its chartered capital to VND5.64 trillion ($248.21million) from VND4.85 trillion ($217.18 million) in April’s annual general meeting. VIB shareholders also voted on the bank’s bonus share plan with a dividend of 16.5 per cent.

VIB annual dividend has been around 9 to 15 per cent over the past few years, in both cash and share bonus. In 2014, VIB paid 9 per cent in cash and about 14 per cent as a share bonus, while in 2015 the bank paid 8.5 per cent cash and 16.5 per cent bonus shares.

The total assets of VIB was at VND93.07 trillion ($4.16 billion) and with a capital adequacy ratio (CAR) of 14.46 per cent, with non-performing loans falling sharply to 1.49 per cent, according to VIB’s January to October report.

The VIB’s accumulated profit before provisions has been reported at VND940 billion ($42.13 million) during the first nine months of 2016, up 25.9 per cent year on-year, while total operating income increased 21 per cent year-on-year.

VIB's lending balance stood at VND53.37 trillion ($2.39 billion), 11.7 per cent higher against December 31 figures. Deposits grew 12.1 per cent since December 31 to VND59.77 trillion ($2.67 billion), fees and commissions increased 41 per cent year-on-year, total assets amounted to VND88.61 trillion ($3.97 billion), up 5 per cent since the end of 2015.

VIB now has more than 4,000 employees serving 1.6 million personal customers and 34,000 corporate customers. The Commonwealth Bank of Australia became VIB’s strategic shareholder in 2010.

Techcombank, on the other hand, saw posted a post-tax profit of VND2.29 trillion ($100.78 million) for the first nine months of 2016, a year-on-year increase of 89.5 per cent. Its total assets are worth VND222.7 trillion ($9.8 billion), up 16 per cent compared to last year’s figures.

Other than Techcombank and VIB, several Vietnamese banks have announced plans to trade on UPCoM including VPBank, OCB, Maritime Bank, Kienlong Bank, all of which revealed that their listing plans have already been submitted to the State Securities Commission (SSC).

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