Vietnam’s Eximbank seeks to move headquarters to Hanoi after ownership changes

Eximbank, among the leading mid-sized banks in Vietnam, has announced a plan to move its head office from Ho Chi Minh City, the largest economic hub in the south, to Hanoi after recent changes in shareholders.

The bank’s board of directors has reached a consensus on picking a new location addressed No. 27-29 Ly Thai To street, Hoan Kiem district, Hanoi. Its current headquarters is located at Vincom Center building, 72 Le Thanh Ton, District 1, HCMC.

Hoan Kiem is home to the headquarters of the State Bank of Vietnam (SBV) and other leading banks such as Vietcombank (HoSE: VCB), VietinBank (HoSE: CTG), and BIDV (HoSE: BID).

In a document sent to shareholders on Tuesday, Eximbank’s leadership argued that the dynamic northern market holds vast potential to tap in, in addition to enhancing its footing in the south. Therefore, the bank aims to expand its network in the north.

Furthermore, moving to Hoan Kiem district, which is Hanoi’s crucial administrative, commercial and service center, is a “strategic move” that will help the bank scale up its operations and implement its business strategy effectively.

Such a change in headquarters will only be realized if more than 51% of shareholders endorse it at an extraordinary general meeting to be held at Melia Hanoi hotel on November 28, and is pending SBV approval, Eximbank said.

The bank will also submit to shareholders’ approval a document on dropping a 2022 plan to construct its headquarters at No. 7 Le Thi Hong Gam, District 1, HCMC.

In a regulatory disclosure last month, Eximbank (HoSE: EIB) said state-controlled Vietcombank had emerged as the second largest shareholder with a 4.51% stake. Gelex Group (HoSE: GEX) remains the largest shareholder with 10%. The third largest shareholder is VIX Securities JSC (HoSE: VIX) with 3.58%.

Eximbank earned a net profit of VND721.2 billion ($28.6 million) in Q3/2024, up 198.25% year-on-year, thanks to income from lending and forex trading.

In the first nine months of this year, the bank’s net profit was up 39% year-on-year to VND1,891 billion ($74.96 million).

EIB shares traded at VND19,400 ($0.76) apiece at 9:50 a.m. on Wednesday.