VietNamNet Bridge - As the banking sector has overcome a difficult period, rich investors have poured money into bank shares, including bankers’ wives, children, fathers, mothers, brothers and sisters.

The latest report from the National Finance Supervision Council showed that bank profit increased by 40 percent compared with the same period last year, while credit has been growing sharply since 2010 and the bad debt ratio decreasing rapidly,

Another report from the State Bank of Vietnam showed commercial banks were optimistic about 2017 and 2018. Nearly 90 percent of banks said their profit would see 2-digit growth rates this year. 

The strong recovery of the banking sector has attracted strong cash flow. The prices of most of the banks have increased sharply. 

The strong recovery of the banking sector has attracted strong cash flow. The prices of most of the banks have increased sharply.

MBB of Military Bank and TCB of Techcombank have seen a two-fold price increase. NVB of National Citizen Bank soared from VND4,000 to VND10,000 in price. The price of ACB of Asian Commercial Bank increased by 60 percent, and SHB by 70 percent.

Not only Vietnamese but foreign investors are also eyeing bank shares. When VP Bank offered its shares overseas, it registered to buy up to $1.2 billion worth shares (double the offered shares), which no Vietnamese company could do before.

Since listing shares on the bourse, VP Bank shares have been hunted by foreign investment funds and big individual investors. Three individual investors spent VND6.4 trillion to acquire 11 percent of VP Bank capital.

Meanwhile, TP Bank successfully sold a 5 percent stake to IFC for VND400 billion.

Other banks have reportedly gained important steps forward in negotiations with foreign investors. One investor has expressed his willingness to take over the ‘zero dong’ Ocean Bank.

Bankers have spent big money to collect shares of their banks. Sacombank’s chair Duong Cong Minh has bought 18 million shares at VND200 billion. Pham Doan Son, CEO of LienVietPost Bank, spent VND50 billion to buy 5 milion shares. Do Chi Dung, chair of VP Bank, and other senior executives have also collected shares.

Local newspapers reported that Lo Bang Giang, deputy chair of VP Bank, and his wife, mother and sister in July and August spent VND3.8 trillion to buy 110 million VP Bank shares.

Analysts noted that many banks are now family-run businesses. At ACB, Tran Mong Hung is the founder and member of board of directors, while his wife is also a member and his son is on chair of the board. Two daughters of Hung also hold large proportions of shares.

Tran Hung Huy, chair of ACB and son of Hung, is holding shares worth VND900 billion.

US$1=VND22,000

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