Vietnam Export-Import Commercial Joint Stock Bank (Eximbank - EIB) recently released its consolidated financial report for the first half of 2024, showcasing several positive figures.

Eximbank achieved a pre-tax profit of over 1,475 billion VND, a 5% increase compared to the first half of last year. Although this accounts for only 28% of the annual target, the bank's profit outlook appears promising as business profits continue to rise quarterly.

Specifically, the second-quarter 2024 profit reached 813 billion VND, a significant 52% increase from the same period last year. This impressive recovery is largely attributed to a 38% increase in net interest income, reaching nearly 1,512 billion VND. Meanwhile, net income from other activities reached 213 billion VND, three times the amount of the second quarter of 2023.

In the past quarter, Eximbank also allocated 221 billion VND for credit risk provisioning, a 24% increase from the same period, indicating the bank's focus on asset quality, even as the non-performing loan ratio slightly decreased from 2.65% at the beginning of the year to 2.64% as of June 30, 2024.

Comparing 29 commercial banks that have announced second-quarter financial reports, Eximbank is a rare bank with no outstanding loans from corporate bond lending. This is a significant plus for Eximbank's asset quality amid the ongoing corporate bond market crisis since 2022.

In addition to the aforementioned profit results, several key business indicators for Eximbank also suggest optimism, such as customer deposits increasing by 4.3% to 163,051 billion VND at the end of the second quarter.

Meanwhile, customer loans increased by 8% compared to the end of last year, with the capital supplied to the market reaching 151,328 billion VND.

Despite a moderate credit growth rate, reduced deposit interest rates compared to the same period led to a 37% decrease in customer deposit interest expenses, down to 1,708 billion VND.

As of June 30, 2024, Eximbank's total assets reached 211,999 billion VND, a 5.3% increase from the end of last year.

Notably, employee expenses for the first half of the year (salaries, allowances, and contributions based on salaries) increased significantly by 34% compared to the same period, reaching nearly 543 billion VND, even though the number of employees increased slightly (6,226 employees as of June 30, 2024, up 196 from the same period last year).

Calculations show that the average income (including salary and allowances) for Eximbank employees in the first half of the year was 24.34 million VND per person per month, a significant increase from 17.21 million VND per person per month in 2023.

In 2024, Eximbank aims for a pre-tax profit of 5,180 billion VND, an increase of 90.5% compared to last year's results. The total assets are expected to increase by 11%, reaching 223,500 billion VND; and capital mobilization is projected to rise by 10.5%, reaching 175,000 billion VND.

Previously, Eximbank announced a 3% cash dividend payout from undistributed accumulated profits until 2023. With over 1.74 billion shares listed and circulating, Eximbank will spend approximately 522 billion VND on dividends. This marks the first time in 10 years that the bank has distributed cash dividends.

Emergence of a major shareholder

Having previously had a "golden opportunity" to become a leading bank in the system due to past internal developments, Eximbank is now showing a solid comeback after the Board of Directors effectively managed internal affairs over the past year.

Notably, the State Bank of Vietnam recently approved Gelex Group, a leading Vietnamese investment group with major brands such as Viglacera, CADIVI Electric Cable, EMIC Electrical Measurement Equipment, THIBIDI Transformers, HEM Electric Motors, CFT Copper Wire, and Song Da Clean Water Plant, to acquire Eximbank shares.

Following the transaction, Gelex will become a major shareholder in the bank.

According to the approval document, the transaction is expected to be conducted through order matching and/or agreement transactions via the Ho Chi Minh City Stock Exchange trading system this year.

If the transaction is successful, Gelex will increase its ownership stake to an estimated 10% of Eximbank's charter capital. This is also the maximum percentage that an institutional shareholder can own at a credit institution according to the Law on Credit Institutions 2024.

In early July, the State Bank of Vietnam also approved a plan to increase Eximbank's charter capital through the issuance of shares to pay dividends to shareholders. Specifically, Eximbank will issue an additional 121.9 million new shares, equivalent to an increase of nearly 1,219 billion VND in charter capital. After issuance, the bank's charter capital will reach 18,688 billion VND.

Eximbank recently announced the list of shareholders owning from 1% of the bank's charter capital. Among them, Gelex Group Joint Stock Company is the largest shareholder, holding 4.9% of the charter capital. Next is VIX Securities Joint Stock Company, holding 3.58%, and Thang Phuong Joint Stock Company, holding 3.07%.

Tuan Nguyen