LienVietPostBank to change name, raise charter capital to $1.22 bln
Private Vietnamese lender LienVietPostBank plans to change its name to LPBank and increase its charter capital to VND28.68 trillion ($1.22 billion).
At its 2023 annual general meeting on Sunday, shareholders approved a target of VND6 trillion ($255.37 million) in pre-tax profit this year, a year-on-year rise of 5.4%.
The bank’s 2023 total assets are set to reach VND375 trillion ($15.96 billion), up 14.4% compared to the previous year. Of this, total credit will account for nearly VND273.5 trillion, with deposits at VND295.74 trillion, up 16% and 17.8%, respectively.
The lender plans to pay share dividends at a rate of 19% in 2022 and 12% in 2023. It is also looking to raise charter capital via issuing 328.5 million shares to pay dividends, offering 500 million shares to existing shareholders, organizing the private placement of 300 million shares for foreign investors, and issuing 10 million shares under the employee stock ownership plan.
Its charter capital is planned to rise nearly 66% from VND17,291 billion ($73.94 million) to VND28,676 billion ($1.22 billion) within 2023-2024.
The meeting also elected a seven-member board of directors, including an independent member, and a supervisory board for the new term 2023-2028.
The new board consists of chairman Nguyen Duc Thuy, Huynh Ngoc Huy, Le Hong Phong, Nguyen Van Thuy (the chairman's younger brother), Le Minh Tam, Ho Nam Tien, and Bui Thai Ha.
At the end of 2022, Nguyen Duc Thuy was elected board chairman to replace Huynh Ngoc Huy, who resigned for personal reasons. Meanwhile, Ho Nam Tien, standing deputy general director, has served as acting general director since March 17, 2023.
According to Tien, in 2022, the bank’s outstanding loans hit more than VND26 trillion ($1.1 billion), with nearly 54% in agriculture and 15% in real estate, all backed by collateral.
Amid the corporate bond crisis, the acting general director affirmed that LienVietPostBank had not invested or distributed corporate bonds so it would not be adversely affected.
Regarding Vietnam Post's (VNPost) unsuccessful divestment from LienVietPostBank, deputy general director Bui Thai Ha said that the price gap was the main reason as it offered a starting price of VND22,908 ($0.97) per share while the market price was around VND14,000 ($0.6).
On April 21, VNPost tried to auction more than 140.5 million LienVietPostBank shares, but was unsuccessful due to the high asking price.
At the beginning of 2022, VNPost also put on sale more than 122 million LPB shares with a starting price of VND28,930 ($1.16) per unit. The sale was also unsuccessful after the registration deadline (January 25 to February 16) to buy expired. Only seven Vietnamese individuals registered to buy a total of 800 LPB shares, equivalent to about VND23 billion ($926,000).
“LienVietPostBank and VNPost have signed a 50-year cooperation agreement so the latter’s divestment does not affect our collaboration,” Ha noted.
Mentioning the bank’s future strategic direction, chairman Nguyen Duc Thuy said that the lender will promote digital transformation and persist with its retail strategy, especially in rural areas.
The bank will restructure to optimize business development; increase the proportion of revenue from non-credit activities, and continue to improve risk management and bad debt settlements, he added.
In 2022, LienVietPostBank recorded a pre-tax profit of VND5.69 trillion ($240.35 million), up 56% year-on-year and hitting 118% of its target.
As of January 31, 2022, the bank's total assets had increased by 13.3% compared to the beginning of the year to more than VND327.7 trillion ($13.84 billion). Of this, customer loans increased by 12.1% to VND230.64 trillion ($9.74 billion), while loan risk provision increased by 53.6%.
On the Ho Chi Minh Stock Exchange (HoSE), LienVietPostBank (LPB) shares closed at VND13,650 ($0.58) on Friday.
- Read More
Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE
Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.
Finance - Thu, November 21, 2024 | 11:29 am GMT+7
Posco keen on investing in Vietnam's $2.2 bln LNG power project
South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.
Energy - Thu, November 21, 2024 | 10:42 am GMT+7
Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta
The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.
Industries - Thu, November 21, 2024 | 10:31 am GMT+7
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7
Malaysia’s Halal industry to make up 10.8% of GDP by 2030
Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).
Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7
- Consulting
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
In trade and investment, ASEAN and China are better together
-
AI can be a game changer for Vietnam tourism
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?