Business activities of banks in September 2023Saturday, September 30,2023
AsemconnectVietnam - Nam A Bank (NAB) approved the plan to list shares on HOSE; VPBank (VPB) plans to issue more than 30 million ESOP shares, priced at VND10,000/share in Q3/2023; VIB leads the banking industry in the Top 50 Most Effective Business Companies in Vietnam 2023; MB continues to be in the Top 3 businesses most loved by investors; Sacombank’s consolidated pre-tax profit reached VND6,175 billion in the first 8 months of 2023.
Nam A Bank
The Board of Directors of Nam A Commercial Joint Stock Bank (Nam A Bank, code NAB - UPCoM) on August 23 approved a resolution to supplement the plan to list NAB shares at the Ho Chi Minh City Stock Exchange (HOSE).
Accordingly, Nam A Bank's Board of Directors unanimously approved the plan to list all more than 1 billion NAB shares on HOSE. The expected time to send the application for listing registration is in the third or fourth quarter of 2023. The Board of Directors continued to list NAB shares on HOSE according to the additional plan.
At the 2023 Annual General Meeting of Shareholders of Nam A Bank held on March 18, the Bank approved the registration to list all outstanding shares of Nam A Bank on HNX or HOSE depending on market conditions.
Previously, the stock listing plan was approved by the General Meeting of Shareholders in 2022 but then proactively postponed to ensure shareholder rights in the context of an unfavorable macro environment and unpredictable stock market developments.
NAB shares started trading on UPCoM from October 9, 2020 with a reference price of 13,500 dong/share. Currently, NAB shares are trading around 12,500 dong/share at the beginning of the session on August 25, up 85% compared to the beginning of this year.
As of June 30, 2023, Nam A Bank's total assets reached more than VND200,200 billion (up 12.74% compared to the beginning of the year), Nam A Bank joined the group of 20 banks with the largest total assets.
Funds mobilized from residents and economic organizations grew well to nearly VND151,197 billion (increasing by more than 16% compared to the beginning of the year, completing 98% of the plan in 2023); Outstanding customer loans grew in accordance with the credit growth limit licensed by the State Bank, reaching more than VND129,300 billion (up 8.1% compared to the beginning of the year, completing nearly 98% of the 2023 plan).
Since the beginning of the year, the State Bank has reduced the operating interest rate 4 times in a row. The pressure of bad debt and NIM decline was faced by the whole banking system. NPLs at Nam A Bank are not out of the general trend of the industry, currently increasing slightly by 2.7% (but debt needs attention - group 2 of Nam A Bank decreased by more than 21%) due to the macroeconomic situation. adversely affect the financial capacity of the customer.
This is the general situation of the whole industry, so the government and the State Bank of Vietnam have issued many solutions to support the economy, for example, Circular 02/2023/TT-NHNN on debt restructuring to support customers facing difficulties. Asset quality is expected to recover in the coming quarters.
The positive point is that Nam A Bank's NIM has remained stable at over 3.2% in the context of narrowing deposit and lending interest rates, thanks to solutions to optimize the structure of profitable assets and the mobilization structure. Non-interest income is also a bright spot of Nam A Bank when this index has a strong growth. Net profit from service activities reached VND241.6 billion, up 185% over the same period last year.
Moreover, the safety indicators in operation far exceed the level regulated by the State Bank. Nam A Bank has also complied with liquidity indicators, meeting Basel III criteria.
Capital adequacy ratio (CAR) reached over 9.5% (minimum according to the regulations of the State Bank of 8%), the ratio of outstanding loans to deposits of LDR reached 71.6% (the maximum according to regulations of the State Bank is 85 %). is 50%), the 30-day solvency ratio of USD is 38.99% (minimum according to the regulations of the State Bank of 10%), the ratio of short-term funds for medium and long-term loans is 22.58% (minimum). The maximum according to the regulations of the State Bank is less than 34%).
This growth momentum has contributed significantly to Nam A Bank's pre-tax profit of VND1524.8 billion in the first 6 months of 2023 (up nearly 30.21% over the same period in 2022, completing 46% of 2023 plan). The bad debt ratio is controlled according to the regulations of the State Bank.
Vietnam Prosperity Joint Stock Commercial Bank (VPBank, code VPB - HOSE) has just passed the Board of Directors Resolution on implementing the plan to sell treasury shares under the employee selection program (ESOP).
Accordingly, VPBank plans to offer 30.22 million treasury shares to employees at a price of VND10,000/share. Subjects eligible to buy shares are Vietnamese employees who meet the regulations on the offering of treasury shares under the employee selection program. Non-executive members of the Board of Directors are not allowed to buy shares sold under the ESOP program.
Treasury shares sold to employees will be frozen (transfer restricted) for a maximum of 3 years from the date of completion of the offering (the date on which payment for shares from employees ends). Specifically, from the end of the offering, 30% of the shares will be released after 1 year; After 2 years, 35% will be released and after 3 years, 35% of the remaining shares will be released. The benefits arising from the purchased shares (if any) will not be subject to transfer restrictions.
The expected implementation time for ESOP issuance is in the third quarter of 2023. The total expected proceeds after the issuance are nearly VND302.2 billion, which will be used to supplement the Bank's liquidity.
The remaining shares not purchased by employees will be distributed to other employees who meet the requirements of the Regulations on offering treasury shares under the ESOP program at a price not lower than VND10,000/share and/or do not continue offering, only record the actual number of registered purchases.
It is known that the latest issuance under the ESOP program ended on August 16, 2022, with an issued volume of 30 million shares, selling price of VND10,000/share.
Regarding business activities, according to the reviewed 2023 mid-year consolidated financial statements, VPBank recorded net interest income of more than VND18,296 billion, down 10.1% over the same period last year; Profit after tax reached approximately VND4,102 billion, down 66.5% over the same period.
With pre-tax profit in the first 6 months of 2023 reaching more than VND5,162 billion, the Bank has only completed 21.5% of the full year target of VND24,003 billion.
At the recent Honoring Ceremony of "Top 50 Most Effective Business Companies in Vietnam 2023", there were 7 representatives from the banking industry, including: VIB, LPBank, ACB, TPBank, HDBank, Techcombank and Vietcombank. VIB continues to lead the industry in this year's rankings.
TOP50 is evaluated on the basis of measuring business results of companies for 3 consecutive years, based on 3 growth indicators: revenue, return on equity (ROE) and return on shares. With the consultation of leading economic and business experts from Harvard Business School, the measurement results aim to objectively assess the management capacity of Vietnamese businesses.
As of March 2023, TOP50 capitalization value reached about USD80 billion, accounting for 34% of the entire market capitalization value. In terms of operating efficiency through return on equity (ROE), the average TOP50 ROE reaches 19%, about 1.8 times higher than the ROE of the entire listed market (11%).
TOP50 revenue reached nearly USD42 billion, growing 3.4% compared to 2021, accounting for 21.6% of total listed market revenue. Profit after tax reached nearly USD7.8 billion, accounting for 40% of profit after tax of the entire listed market and 7.3 times higher than the market increase of 5.4%.
In the 3 years 2020-2022, VIB's ROE index is outstanding with an average rate of 30%, while ACB is 25%, TPBank (23%), HDBank (23%), Vietcombank (22%), Techcombank (20%), LPBank (18%).
In terms of revenue, VIB increased on average 30%/year, the highest among the 7 banking industry representatives in the Top 50. In terms of stock price, the profit margin VIB shares bring to investors in the period 2020 - 2022 is 82%.
Not only leading the banking industry in the Top 50 Most Effective Business Companies in Vietnam 2023, VIB has also just been included in the list of Top 10 prestigious and effective Public Companies in 2023 by Vietnam Report, along with other representative representatives. Other industry representatives include Vietcombank, Techcombank, MB, ACB and HDBank.
VIB is always highly appreciated by rating agencies and analysts for its business efficiency thanks to the highest proportion of retail loans in the system.
According to MB Securities (MBS), the important factor helping VIB's ROE to be maintained at a high level compared to the entire industry for many consecutive quarters (29-30%) comes from the abundant non-interest income generated from available equity without the need to increase equity capital. In particular, card fee revenue will be an advantage of VIB thanks to taking advantage of the efficiency of digital transformation on the basis of a large retail customer base.
“VIB is still focusing resources to further increase its card business market share, in addition to taking advantage of its large retail loan portfolio to increase cross-selling activities and launch card products with creativity to maintain the growth rate of this business segment", MBS commented.
In addition, with the proportion of outstanding retail loans accounting for nearly 87% of the total loan portfolio, VIB is one of the banks with the lowest concentrated credit risk in the market. Of these, more than 90% of loans have collateral, mainly houses and residential land with full legality and good liquidity.
With the forecast that credit growth will improve in the second half of this year when economic support measures such as reducing interest rates, VAT, public investment, etc. begin to be effective, analysts expect the Banks with a high proportion of retail loans like VIB have many advantages to improve credit growth and business efficiency as Vietnam is gradually entering the initial recovery phase.
Develop investor relations (IR) activities in a professional and effective manner, based on full compliance with legal regulations as well as promoting the application of good practices on transparent information disclosure. According to the announcement, MB continues to be listed in the Top 3 listed enterprises with large capitalization (Large Cap) most loved by investors.
On the morning of September 28, in Ho Chi Minh City, the Vietnam Association of Financial Administrators, Finance and Life e-Magazine and Vietstock.vn co-organized a ceremony to honor listed enterprises with 2023 Investors Relations Best Practice Awards (IR Awards 2023).
The event aims to recognize the efforts and achievements in standardizing investor relations of businesses, and at the same time, aims to raise awareness about the role of IR and the importance of developing operations. IR professionally, approaching international standards.
Following 2022, this year, MB continues to enroll in the Top 3 businesses most loved by investors. MB is highly appreciated by the IR Awards 2023 Organizing Committee as a listed enterprise that "complies with information disclosure activities, has strategic management, transparent financial communication, and achieves effective communication between businesses and the financial community and other components, thereby optimizing business value."
In 2022 and the first 6 months of 2023, MB has organized events, met, contacted, and exchanged with shareholders, investors, domestic and foreign analysts to update its operations. MB's operations, business results, strategies as well as discussions about the macroeconomic context, financial - banking situation and business environment in Vietnam. Thereby, information about MB's business activities is fully, quickly, promptly and accurately transmitted to investors and the market, contributing to maintaining its position in capitalization value as well as investment efficiency in MB shares. MB's capitalization as of June 30, 2023 reached VND91,586 billion, up 21% compared to the beginning of the year.
MB Bank in general and MB's investor relations activities in particular are always highly appreciated by funds, shown by the fact that MBB's foreign room is always fully purchased.
Sharing about IR activities, MB representative affirmed: "Understanding the importance of compliance, transparency, timeliness and equality in providing information about business operations to investors." Investment and information disclosure activities are always given special attention and focus by MB.”
In 2022, MB's annual report will be integrated with an ESG sustainable development report, ranking in the Top 7 best annual reports of listed businesses voted by investors according to the program of the Securities Commission and Securities and the Ho Chi Minh City Stock Exchange (HSX).
The awards and positive feedback from investors are testament to the dedication and continuous efforts in investor relations over the years, contributing to enhancing the image of MB and its member companies with shareholders, the investor community and domestic and international customers.
According to information from the IR Awards 2023 Organizing Committee, the honored businesses have gone through rounds of surveys, carefully and comprehensively quantifying information disclosure activities among 731 listed businesses within 12 months ( from May 1, 2022 to April 30, 2023); Evaluates IR activities through a scoring system from 33 leading financial institutions, along with votes from the investor community.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, code STB - HOSE) said that consolidated pre-tax profit for 8 months reached VND6,175 billion, up 56% over the same period last year, completing 65% of the whole year plan.
In the first 8 months of 2023, Sacombank's total assets continue to expand and maintain its position in scale, reaching more than VND635 trillion, an increase of more than 7% compared to the beginning of the year.
Asset quality improved strongly with profitable assets increasing by 9.4%, accounting for 91% of total assets; Profitability also increased significantly, ROA - ROE reached 1.21% and 18.13%, respectively, up 0.3% and 4.3% compared to the previous year.
In addition, Sacombank also strengthens control of the quality of risky assets, regularly reviews and evaluates key risk portfolios, risk appetite and endurance tests to comprehensively assess the ability meet the capital adequacy ratio in the most stressful cases, thereby having appropriate capital planning and capital allocation.
Sacombank's equity as of August 31, 2023 reached more than VND43 trillion, an increase of nearly 12%, mainly from undistributed profits. Of which, charter capital is VND18,852 billion, accounting for 43.7% of equity.
The mobilized capital structure ensures liquidity safety, the Bank's total mobilization at the same time reached nearly VND558 trillion, an increase of more than 7% compared to the beginning of the year, of which, mobilization from economic organizations and people Housing increased by more than 11%, accounting for 4.2% of the entire industry market share.
At the same time, Sacombank said that it actively promoted non-credit activities to diversify revenue sources, especially digital banking and foreign exchange services, helping total income grow high compared to the same period last year.
Sacombank's total net income in the first 8 months of 2023 reached nearly VND17,500 billion, an increase of 9.3%. Operating costs are strictly controlled. Consolidated pre-tax profit reached VND6,175 billion, up 56% over the same period last year, reaching 65% of the plan assigned by the General Meeting of Shareholders. In 2023, Sacombank sets a profit target of VND9,500 billion, an increase of 50% compared to 2022.
Sacombank (STB): Consolidated pre-tax profit reached VND6,175 billion in the first 8 months of 2023
Business activities of securities companies in September 2023
APG Securities divested all capital at Angimex
Hoang Anh Gia Lai (HAG) recorded VND660 billion net revenue in August, up 47%
Tan Viet Securities (TVSI) escaped special control
Bao Viet Securities (BVS) is about to finalize the list of shareholders to receive cash dividends at a rate of 10%
International exhibition on Industrial Machinery, Equipment, Technology and Products in Ho Chi Minh City (VINAMAC EXPO 2023)
VIB leads the banking industry in the Top 50 Most Effective Business Companies in Vietnam 2023
VPBank (VPB) plans to issue more than 30 million ESOP shares, priced at VND10,000/share in Q3/2023
Koterasu reached an agreement to invest USD10 million in An Gia (AGG)
Loc Troi Group Joint Stock Company (LTG) dissolved a subsidiary
APG Securities divested all capital at Angimex
FPT reported VND6,000 billion pre-tax profit in the first 8 months of 2023
CEN Invest lost more than VND30 billion in the first 6 months of 2023