Shareholders of HCMC Development Joint Stock Commercial Bank (HDBank) have approved a plan in which Petrolimex Group Commercial Joint Stock Bank (PG Bank) will be merged into HDBank.

Customers transact with HDBank in this file photo. Shareholders of HDBank has approved a plan in which PG Bank will be merged into HDBank 

At the annual general meeting on April 21, HDBank said it will finalize a list of shareholders this July, and the merger can be completed a month later. Shareholders of PG Bank last week okayed the merger plan while 94.28% of HDBank shareholders gave approval.

According to HDBank, it signed a strategic cooperation deal with Vietnam National Petroleum Group (Petrolimex) on April 20, which includes the PG Bank-HDBank merger.

After the merger, HDBank expects its pre-tax profit to reach VND4.6 trillion and its respective ratios of return on asset (ROA) and return on equity (ROE) to be 1.3% and 21%.

PG Bank earlier had plans to merge into Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), but the deal faltered.

VietinBank shareholders at a meeting in Hanoi agreed to abandon the merger plan. PG Bank last year sent a document to VietinBank, officially proposing dropping the plan.

The document stated VietinBank and PG Bank had differences over benefits and shareholders, which made the merger impossible.

In reply to shareholders’ concerns about the cancelled deal, VietinBank general director Le Duc Tho said both sides could not arrive at agreement despite lengthy talks. “Regarding the possibility that VietinBank takes over another bank, it may happen as long as it is good for the bank.”

According to Tho, last year VietinBank continued to maintain its position as a leading joint stock commercial bank in terms of assets, equity and profitability. Its total assets amounted to VND1,100 trillion in end-2017, up 15.4% against 2016 and equivalent to 101.2% of the target.

VietinBank made VND9.206 trillion in pre-tax profit, saw a 16.2% increase in capital mobilization and an 18% rise in outstanding loans, and kept bad debt at 1.13% of total outstanding loans. Its ROA and ROE ratios were 0.9% and 12.02% respectively.

VietinBank’s stock price has grown by over 100% in the past year.

SGT