May 23, 2023 | 07:00:00 GMT+7 | Weather 19°
Follow us:
70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Apr 20, 2018 / 16:29

HDBank to merge with PGBank

HDBank has announced that its shareholders have approved a plan to merge with unlisted PGBank in a share-swap deal on April 20.

In a statement in its annual shareholders meeting, HDbank said, each share of PGBank will be converted into 0.621 HDBank shares. HDBank will issue 300 million ordinary shares for the conversion. 
 
HDBank has announced that its shareholders have approved a plan to merge with unlisted PGBank in a share-swap.
HDBank planned to merge with unlisted PGBank in a share-swap deal.
"The merger will allow HDBank to reach the ecosystem with a volume of over 20 million customers and 4,000 retail outlets of Petrolimex," said Vice Chairman of HD Bank Nguyen Thi Phuong Thao. The merger is scheduled to take place by August this year. 

The merger, according to Thao, will allow HDBank to realize its strategy of retail banking ahead of schedule in period 2017 - 2020, with 400 branches and 15,000 retail point of services. It is expected to have profit after merging completion of VND4.6 trillion (US$201 million), return on assets (ROA) at 1.3%, return on equity (ROE) at 21%, and capital adequacy ratio (CAR) of 12%.

HD Bank listed more than 980 million shares on the Ho Chi Minh City Stock Exchange (HOSE) on January 5. Before the listing, foreign investors had spent nearly US$ 300 million to own 21.5% of HD Bank's chartered capital for price of VND32,000 (US$1.4) per share. With the initial offering price of VND33,000 (US$1.44) per share, HD Bank is valued at VND32.4 trillion (or US$1.43 billion), thus becoming one of 20 largest companies on Ho Chi Minh Stock Exchange. 

The bank reported a net profit of VND1.93 trillion (US$84.2 million) for 2017, up 112% year on year, and plans to increase that 61% to VND3.1 trillion (US$135.3 million) in 2018. Currently, the bank's rate of non-performing debt (NPL) is 1.5%. HD Bank plans to set the annual growth rate of net profit at 37% per year until 2021 with customer base of 15 million, aiming to become Vietnam's top bank instead of the current 8th rank. 

The lender targets to grow its total assets to VND242.87 trillion (US$10.6 billion) by the end of this year, up 28.3% from end-2017. 

On last January, Vietnam International Bank (VIB) made their debut on the Unlisted Public Company Market (UPCoM), afterwards were Kienlong Bank, VP Bank, LienVietPost Bank and BacA Bank, thus, adding VND 95 trillion (roughly US$ 4.2 billion) to stock market capitalization.