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Tag: pgbank

  • Buyers keen to take stake in PGBank

    Buyers keen to take stake in PGBank

    Sixteen potential buyers have registered to purchase a combined 213 million shares of PGBank, almost twice the number its biggest shareholder is selling.

    The buyers, comprised of nine individuals and seven domestic organizations, have signed up to participate in the auction of 120 million shares of PGBank, or a 40% stake, which is being sold by Vietnam’s oil and gas giant Petrolimex.

    At a starting price of VND21,300 ($0.91) per share, Petrolimex is set to get at least VND2.55 trillion from the sale.

    MSB, another lender, is set to seek shareholder permission to buy a domestic credit organization which is “operating normally and high credit quality.”

    PGBank is among the lenders that MSB is interested in buying, a leader of the latter told reporters recently.

    Several key leaders of MSB have left the lender for PGBank in recent years.

    In March 2020, Hoang Xuan Hiep left MSB for PGBank and is now the deputy director in charge of debt handling.

    In November 2020, Nguyen Phi Hung, a former deputy director, became the CEO of MSB.

    In February this year, Do Thanh Cong, who used to be a member of the risk department of MSB, became a deputy director of PGBank.

    PGBank had total assets of nearly VND49 trillion last year and equity of VND3 trillion, the lowest in the banking system.

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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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  • PGBank pulls plug on merger plans after 2nd debacle

    PGBank pulls plug on merger plans after 2nd debacle

    After calling off its merger with HDBank, lender PGBank does not plan to look for other partners and will remain independent, its chairman, Nguyen Quang Dinh, has said.

    “In the last six years, PGBank planned to merge with VietinBank and HDBank, but both deals were unsuccessful, which has been affecting the bank’s business.”

    “So the board of directors now aims to develop the bank as an independent entity,” he said at the lender’s annual general meeting on March 30.

    Shareholders approved rescindment of the merger plan, which never received approval from the State Bank of Vietnam.

    PGBank’s proposal to merge with state-owned VietinBank collapsed in 2014 after two years of negotiations.

    The bank targets a 46 percent rise in pre-tax profits this year to VND310 billion ($13.4 million).

    First-quarter profit was up 5 percent year-on-year to VND80 billion, according to its CEO, Nguyen Phi Hung.

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  • Vietnam’s HDBank to absorb PGBank

    Vietnam’s HDBank to absorb PGBank

    Each share of PGBank will be converted into 0.621 HDBank share. Vietnam’s Ho Chi Minh City Development Joint Stock Bank, better known as HDBank, said its shareholders approved on Saturday a plan to merge with the unlisted Petrolimex Group Commercial Joint Stock Bank as it seeks to expand operations in the country.

    The merger is scheduled to take place by August this year, the bank said in a statement.

    Each share of Petrolimex Group Commercial Joint Stock Bank, or PGBank, will be converted into 0.621 HDBank share, it said, adding that HDBank will issue 300 million new shares for the conversion.

    The merger will enable HDBank to expand its client base, including with Vietnam National Petroleum Group, which holds a 40 percent stake in PGBank and a share of around 50 percent of Vietnam’s retail-transport fuel market.

    The shareholders also approved a pretax profit target of VND3.92 trillion ($172.15 million) for this year, a 62.2 percent increase from last year.

    HDBank, a retail bank whose vice chairwoman is Nguyen Thi Phuong Thao, the billionaire founder and chairwoman of Vietjet Aviation, is targeting to grow total assets to VND242.87 trillion by the end of this year, up 28.3 percent from end-2017.

    HDBank, which listed its shares on the Ho Chi Minh Stock Exchange in January following a $300 million IPO in November, reported pretax profit of 1.045 trillion dong in the first quarter this year, up 170 percent from a year earlier. ($1 = 22,771 dong)