Commercial banks are facing challenges, including an increase in bad debts because of Covid-19 and pressure that has forced them to increase charter capital. But bank shares remain attractive to investors.
According to the HCM City Stock Exchange (HOSE), the foreign CEO of Techcombank Jens Lottner has registered to buy 439,000 TCB shares of the bank under the puy-through mode. The share collection will be implemented in October 1-27, 2020.
Techcombank's president Ho Hung Anh
If noting that the current market price is VND23,000 per share, the CEO would have to pay more than VND10 billion to buy the shares of Techcombank, owned by billionaire Ho Hung Anh.
Prior to that, Techcombank decided to raise the ceiling foreign ownership ratio from 22.5 percent to 22.51 percent of charter capital so as to pave the way for the newly appointed foreign CEO to increase his ownership ratio in the bank.
Like many other banks, Techcombank has fixed the ‘room’ for foreign investors to reserve shares for strategic partners.
Prior to that, a big shareholder of HDBank, Sovico, of the female dollar billionaire Nguyen Thi Phuong Thao, completed purchase of 10 million HDBank shares as registered. With the deal, Sovico increased its ownership ratio from 13.34 percent to 14.36 percent.
Bank shares have attracted special attention from investors recently. A lot of banks reported high profit of trillions of dong and high growth rates over previous years, despite the impact of Covid-19.
In H1, Techcombank’s provisions against credit risks were five times higher than that of the same period last year, but its pre-tax and post-tax profits still increased by 20 percent to 6.7 trillion and VND5.4 trillion, respectively. The bank aims to obtain pre-tax profit of VND13 trillion for the whole year of 2020.
STB shares of Sacombank owned by Duong Cong Minh have also seen prices soaring recently thanks to the rumor that Thaco, a Vietnamese owned automobile manufacturer, will buy shares of the bank.
Lien Viet Securities has said it has successfully divested 3 million STB shares under the order matching mode.
Sacombank in recent years has stepped up the settlement of bad debts in order to pave the way for the new development period.
It has offered to sell Phong Phu IZ in Binh Chanh district in HCM City, which is collateral for the loans, in order to collect debts.
Many other banks have also offered to sell mortgaged assets to settle bad debts and have hurried to increase charter capital to satisfy criteria under international standards.
MBBank, OCB, LienVietPostBank, VIB, ACB, HDBank, BacABank and SeABank are increasing capital through different ways. ACB is planning to list another 500 million shares.
Commercial banks have six months to fulfill procedures to list their shares on the bourse, as requested by the Prime Minister.
Some organisations have rushed to sell shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) to retrieve bad debts, but it was not easy to find buyers agreeing with the offered price.