SHB bank, VPBank raise foreign ownership limits

SHB has tripled its foreign ownership limit to 30%, the maximum allowed under the law, while VPBank previously raised its figure from 15% to 17.5%.

The adjustment at SHB came into effect on March 4, Vietnam Securities Depository (VSD) reported.

According Decree No.01/2014/ND-CP on foreign investors’ purchase of a Vietnamese credit institution’s shares, the ownership ratio of foreign investors must not exceed 5% of the charter capital for an individual and 15% for an institution. The aggregate foreign ownership is capped at 30%.

In August 2021, SHB locked its foreign ownership at 10% to make public offerings which were approved by its shareholders in 2021.

In its latest offering, SHB successfully sold over 539 million shares to existing shareholders, raising its chartered capital to over VND26.67 trillion ($1.17 billion).

In 2021, SHB achieved positive business results, with pre-tax profit rising 90.3% to VND6.22 trillion ($272 million), equivalent to 107% of its plan.

As of December 31, 2021, SHB’s total assets reached VND506.5 trillion ($22.18 billion), an increase of 23% compared to the end of 2020. The stock closed the trading session on Tuesday at VND 21,000 ($0.92) per share.

Meanwhile, VPBank (VPB) last Friday raised its foreign ownership from 15% to 17.5% of its chartered capital, enough for the bank to issue new shares to a foreign strategic investor.

At a recent briefing on business results, VPBank said that the private placement for a foreign strategic partner is still on schedule and expected to be done in the first half of 2022.

If the issuance is successful, the bank’s equity could reach VND120 trillion ($5.25 billion), making it one of the country’s leading banks.

Nguyen Duc Vinh, CEO of VPBank, said the bank will continue to strengthen its capital base in 2022 by looking for a strategic investor and this plan is being actively implemented.

There appeared information on the market that VPBank would sell a stake to SMBC, a Japanese banking and financial services institution. On February 2, Eximbank’s board agreed to SMBC’s request to divest its entire 15% in this bank as a strategic investor.

In 2021, SMBC signed to acquire a 49% stake of FE Credit from VPBank. The deal valued FE Credit at $2.8 billion.

VPBank’s profit growth in 2022 is expected to be more positive than in 2021. The price of VPB shares at the end of the trading session on March 9 was VND36,850 ($1.61) per share.

Other banks plan to sell shares to foreign investors include OCB (10%), Viet Capital Bank (5%), and Nam A Bank (15-20%).