Established in 1989 and one of the first joint stock commercial banks in Vietnam, Eximbank was a strong brand in the finance and banking sector in Vietnam in the doi moi (renovation) period.

After one decade of development, Eximbank has charter capital of VND17.47 trillion and a network of 216 transaction points nationwide. 

EIB shares of Eximbank were once ‘hot’ shares in the stock market. The Japanese leading financial group Sumitomo Mitsui Banking Corporation (SMBC) once poured $225 million into EIB to become a big shareholder of the bank, holding 15 percent of its shares in 2007.

However, the infighting among major shareholders put Eximbank, which was a powerful bank, in a ‘mess’ over the last years. Its profit dropped from VND4 trillion in 2011 to VND2.7 trillion in 2023. 

The last years have been described by domestic media as ‘a decade of chaos’. Nine presidents were replaced within 10 years. After Le Hung Dung resigned from his post of chair of the board of directors, Eximbank appointed many other individuals, including Le Minh Quoc, Luong Thi Cam Tu, Cao Xuan Ninh, Yasuhiro Saitoh, Nguyen Quang Thong, Yasuhiro Saitoh, Luong Thi Cam Tu, Do Ha Phuong. The person currently holding the post is Nguyen Canh Anh.

Behind every replacement was an uncompromising struggle among groups of shareholders.

In January 2023, SMBC stated that it was no longer a big shareholder at Eximbank. Prior to that, in October 2022, the group of shareholders related to Thanh Cong Group also divested from the bank.

As the conflicts among groups of shareholders escalated, many shareholder meetings were unsuccessful and Eximbank was a hot topic of discussion in every shareholder’ meeting season.

Turning point needed

Eximbank’s shareholders once hoped that the situation would be better when Eximbank admitted two new shareholders, the two biggest of the bank – Gelex Group, with 10 percent of shares, and Vietcombank, 4.51 percent.

A document, called ‘urgent proposals and reflections on serious risks leading to unsafe operations and the risk of collapse of the Eximbank system’ has been spread recently. Eximbank affirmed that the document did not originate from the bank and is not verified.

Eximbank plans to organize an extraordinary shareholders’ meeting in Hanoi, slated for November 28, 2024. Participants at the meeting will discuss the plan to relocate its head office from HCM City to Hanoi.

Analysts commented that the move, if taken, will be a big push to the bank, helping it have a new look. The bank needs a restructuring strategy to solve existing problems, and consolidate and upgrade business operations and risk management.

Eximbank can learn from the successful restructuring of TPBank after DOJI Group owned by Do Minh Phu poured capital into the bank and participated in the restructuring process. The cooperation of powerful shareholders/strategic partners who are not controlled by groups of interest, plus a board of management, capable, enthusiastic and experienced all have helped TPBank change its look.

Eximbank’s latest report about the list of shareholders, holding one percent or more of charter capital, shows that there are three biggest shareholders, namely Gelex, Vietcombank and VIX Securities. There are only two individual shareholders, including Luong Thi Cam Tu (1.12 percent) and Le Thi Mai Loan (1.03 percent).

The ‘condensed’ structure of shareholders, plus relocating to Hanoi, has made investors hope that Eximbank will leave the ‘decade of chaos’ behind and its leaders join forces to regain its strength.

Eximbank is believed to have capability and advantages to become a dynamic and effective bank.

As of the end of the third quarter of 2024, the bank’s total assets had increased by 11 percent compared with the beginning of the year, reaching VND223.683 trillion. 

Its outstanding loans had increased by 14 percent to VND159.483 trillion, while the capital mobilized from economic institutions and the public had increased by 7 percent to VND167.603 trillion.

Eximbank reported the pre-tax profit of VND2.378 trillion in the first nine months of the year, an increase of 39 percent over the same period last year.

Tuan Nguyen