VietinBank to merge with PG Bank
Thang said that the equity and asset scales of major banks in Vietnam are much smaller than those of their peers in the region. Merging to grow stronger is among the measures that VietinBank has taken into account to stay relevant among the leading financial institutions nationwide, and to foster regional integration.
This year will bring opportunities for the bank to boost growth and expand markets, he added.
In January, State Bank of Vietnam Governor Nguyen Van Binh urged Vietinbank, along with Vietcombank, to actively take part in the national banking reform process by handling weak lenders in the country. This is in line with general schemes to consolidate the two banks' positions in the market in the future, he said.
VietinBank currently has nearly 661 trillion VND (31.48 billion USD) in total assets, second to the State-run Agribank. Its charter capital reached more than 37 trillion VND (1.76 billion USD) at the end of last year, the largest equity value in the domestic banking system.
In 2014, its pre-tax profits hit about 7.3 trillion VND (347.62 million USD), down six 6 percent over the previous year. Outstanding loans grew 17 percent year-on-year, to touch 440 trillion VND (20.95 billion USD).
In 2015, the bank has projected asset growth of at least 15 percent, deposit and loan growth of 13 to 15 percent, and control of the bad debt ratio at below three percent.
Thang said that VietinBank will drastically restructure financial resources, operational modes, management ability and distribution networks. It will also step up the reorganisation of information technology infrastructure and human resources.
PG Bank has more than 80 branches and transaction offices nationwide. The Vietnam National Petroleum Group (Petrolimex) is the largest shareholder of the bank, holding 40 percent of its equity.
