Japan financial group MUFG to help VietinBank arrange $1 bln for sustainability initiatives

Mitsubishi UFJ Financial Group (MUFG), among the biggest banking institutions in Japan, will help state-run VietinBank arrange $1 billion in capital for sustainable growth and environmental, social, and corporate governance (ESG) initiatives in Vietnam.

A memorandum of understanding (MoU) to this effect was signed under the auspices of the 28th UN Climate Change Conference of the Parties (COP28) in Dubai, VietinBank said Monday.

Under the MoU, MUFG, which holds a 19.73% stake in VietinBank, will share financial and technical expertise and ESG experiences with the Hanoi-based bank. It will also cooperate with VietinBank in making recommendations related to climate change adaptation and sustainable growth, as also collaborate in the deployment of the Just Energy Transition Partnership (JETP).

Also at the COP28, VietinBank and Standard Chartered discussed ways to boost climate change finance. The Vietnamese bank also held talks on wind energy business opportunities in Vietnam with China-based wind turbine manufacturer Goldwind.

VietinBank, listed on the Ho Chi Minh Stock Exchange as CTG, recorded year-on-year growth in all business segments with a Jan-Sept net interest income of VND38.51 trillion ($1.58 billion).

Profits from non-interest incomes grew sharply by 39% for services and 43% for foreign exchange trading. However, profits from other activities fell 20% compared to the same period last year.

Customer deposits expanded 5% to VND1,310 trillion ($53.8 billion). Government and Vietnam central bank deposits dropped 80% to VND21.58 trillion ($886.3 million), and those from other credit institutions surged 76% to VND247.17 trillion ($10.15 billion).

VietinBank shares closed Monday at VND26,550 ($1.1), up 0.95%.