By completing the move, Vietcombank is no longer a major shareholder in both banks in subject and meets the banking regulation on cross-holding limit, raising a combined net profit of about VND900 billion (US$38.4 million).
State-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has announced it succeeded in reducing its stakeholding in both Military Bank (MB) and Vietnam Export Import Commercial Bank (Eximbank) to below 5%, in turn meeting the central bank's regulation on cross-ownership at the two banks.
By completing the move, Vietcombank is no longer a major shareholder in both banks in subject and meets the banking regulation of cross-holding limit.
Under the regulation set by the State Bank of Vietnam (SBV), commercial banks are permitted to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5%. The SBV requires banks to comply with its requirements before June 30 next year.
On December 6, Vietcombank offloaded 6.68 million Eximbank’s shares, reducing its shareholding from 5.39% to 4.84%.
From December 3 to 7, Vietcombank sold 19.39 million shares of MB, translating into a reduction in stake-holding from 5.39% to 4.98%.
These sales follow Vietcombank’s previous share offloading of 23.7 million shares of MB and 35 million shares of Eximbank in November 30 and December 4.
In total, Vietcombank sold 43.09 million shares of MB and 41.7 million shares of Eximbank.
At the current market price of VND21,000 (US$0.90) for MB share and VND14,200 (US$0.61) for Eximbank, Vietcombank raised a return of VND900 billion (US$38.40 million) and VND600 billion (US$25.6 million), respectively.
This resulted in a net profit of VND350 billion (US$14.93 million) from divesting shares in Eximbank and VND608 billion (US$25.94 million) from MB.
Vietcombank previously divested its shares in a number of credit institutions, including SaigonBank, Cement Finance Company (CFC) and entire shareholding in Orient Commercial Bank (OCB) on September 6.
Illustrative photo.
|
Under the regulation set by the State Bank of Vietnam (SBV), commercial banks are permitted to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5%. The SBV requires banks to comply with its requirements before June 30 next year.
On December 6, Vietcombank offloaded 6.68 million Eximbank’s shares, reducing its shareholding from 5.39% to 4.84%.
From December 3 to 7, Vietcombank sold 19.39 million shares of MB, translating into a reduction in stake-holding from 5.39% to 4.98%.
These sales follow Vietcombank’s previous share offloading of 23.7 million shares of MB and 35 million shares of Eximbank in November 30 and December 4.
In total, Vietcombank sold 43.09 million shares of MB and 41.7 million shares of Eximbank.
At the current market price of VND21,000 (US$0.90) for MB share and VND14,200 (US$0.61) for Eximbank, Vietcombank raised a return of VND900 billion (US$38.40 million) and VND600 billion (US$25.6 million), respectively.
This resulted in a net profit of VND350 billion (US$14.93 million) from divesting shares in Eximbank and VND608 billion (US$25.94 million) from MB.
Vietcombank previously divested its shares in a number of credit institutions, including SaigonBank, Cement Finance Company (CFC) and entire shareholding in Orient Commercial Bank (OCB) on September 6.
Other News
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech
- Vietnamese leader urges Boeing to build production facility in Vietnam
- Foreign capital pouring into Vietnam's real estate market
- Vietnam news in brief - August 24
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
Trending
-
Vietnam’s future path hinges on ASEAN robust development: Party Chief
-
Vietnam news in brief - November 24
-
Are Vietnamese people living healthier lives?
-
Finding ways to unlock Hanoi's suburban tourism potential
-
Hang Ma Street gears up for festive season
-
A Hanoi artisan turns straw into appealing tourism product
-
“Look! It’s Amadeus Vu Tan Dan” workshop - an artistic journey for kids
-
Vietnam news in brief - November 15
-
Experiencing ingenious spaces at the Hanoi Creative Design Festival 2024