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Tag: Kienlongbank

  • KienlongBank postpones stock exchange listing

    KienlongBank postpones stock exchange listing

    Kien Long Commercial Joint Stock Bank has postponed its listing on the Ho Chi Minh City Stock Exchange (HoSE), citing unfavorable market conditions.

    The bank approved a resolution to withdraw its application to list on Friday, also citing “shareholder interests” as a deciding factor.

    The move comes five months after KienlongBank (KLB) submitted its initial application request to HoSE.

    The bank reported that it would inform shareholders when it decides to attempt listing again under more favorable conditions in the future.

    According to the lender, KLB General Director Tran Ngoc Minh will negotiate and terminate the bank’s stock listing consulting contract with Nhat Viet Securities Company.

    Currently, KLB trades at UPCoM at VND12,200 (US$0.52) per share, less than a third of its peak set in March 2022.

    KienlongBank had begun planning to list shares on the stock exchange towards the end of 2021.

    KLB also once applied to change its name to KSBank, but the motion was not approved by the State Bank of Vietnam.

    In the first nine months of 2022, KienlongBank’s consolidated profit dropped to VND513 billion, a decline of 40% year-on-year due to a sharp increase in bad debts and a rapid increase in operating expenses.

    The bank has also had difficulty mobilizing deposits from customers after its deposit balance decreased by 18% to just VND42,200 billion over the first nine months of last year. Outstanding loans at the end of the third quarter of 2022 increased by 7% to VND41 trillion.

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  • Bank deposit interest rates surpass 10%

    Bank deposit interest rates surpass 10%

    Some banks have hiked deposit interest rates to 10-10.35% amid low liquidity in the system. NCB is paying the highest interest rate of 10.35% for 12-month deposits of VND1 billion (US$40,300) downwards made online. For six-month deposits, it is offering 10%. Over the past month, lenders have increased deposit interest rates frequently, even weekly in some cases.

    At least ten banks are now offering more than 9% deposit interest rates. Most have also launched promotions offering higher rates than officially listed to attract depositors. MSB is offering 9.9% to new clients if they place a deposit of at least VND1 million.

    Many, including Kienlongbank, GPBank, BaoVietBank, PGBank, OCB, VPBank, VietBank, Sacombank, and SeABank, are paying over 9% for 12-month deposits. Public banks are offering around 8% for 12 months.

    For periods of below six months most banks are paying around 6%. Banks lack liquidity and so have had to sharply hike the rates to meet the needs of business borrowers, Nguyen Quoc Hung, general secretary of the Vietnam Banks Association, said.

    The director of a large bank said the tightened bond and property markets mean some lenders have to increase deposit interest rates to ensure liquidity steeply.

    In the last two months, interest rates on deposits of six months or more have increased by 1.5-2.5 percentage points, leading to higher lending interest rates. Floating interest rates are predicted to soon surge to 15% yearly for individual borrowers and 11-12% for businesses.

    Now they are around 13% and 9%.

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