Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has just announced a plan to merge with Southern Bank this year as part of the effort to step up the bank restructuring process.
Sacombank may acquire Southern Bank
Sacombank will submit the plan at its annual shareholders’ meeting, scheduled for March 25 in HCM City.
Sacombank’s Board of Directors proposed that its shareholders authorise them to make a feasibility study for the plan as well as accomplish all required procedures for the merger.
“When the merger plan is approved it can be done within the year,” they said in the statement.
They said the plan is in line with the policies of both the government and the SBV, who are making efforts to restructure commercial banks.
Sacombank has aspirations to become a leading modern and multi-functional retail bank in the Southeast Asian region in the near future.
After the acquisition, the newly-founded bank would retain the name Sacombank, and its chartered capital would increase by 8.5%, to VND13.482 trillion (USD638.2 million) this year. Its total assets would be also increased by 14% to VND183 trillion (USD6.53 billion) in 2014.
This year the bank plans to increase its deposits by 14% to VND160.5 trillion (USD7.6 billion), and its total outstanding loans by 13% to VND124.6 trillion (USD5.9 billion), as well as make a pre-tax profit of VND3 trillion (USD142 million), up 6% from a year earlier.
