VietinBank to sell more stakes by the end of the year

Vietinbank goes through with a deal to sell 20% more stake to a foreign partner in the fourth quarter, said the chairman.

The Vietnam Joint Stock Commercial Bank for Industry (Vietinbank) goes through with a deal to sell 20% more stake to a foreign partner in the fourth quarter, said the chairman on May 16.

The Vietnam Joint Stock Commercial Bank for Industry (Vietinbank) goes through with a deal to sell 20% more stake to a foreign partner in the fourth quarter, said the chairman on May 16.

Vietnam’s largest commercial joint stock bank, measured by total assets and chartered capital, made this announcement at an event named 2012 Analyst Day, held in Hanoi on May 16. The bank’s chairman, Pham Huy Hung, confirmed that they planned to complete talks over the deal in the third quarter and finalise the deal in the fourth. The plan would cut state stakes to 51% over the next two years, as instructed by the Prime Minister.

According to Hung, they have also contemplated a merger, but would pend direction from the state bank.

Vietinbank has successfully mobilised $250 million in funds from international bonds at an interest rate of 8%. Hung said that the bank will use the money to  invest in 14 key projects that are in need of foreign currency in sectors such as oil and gas, steel, seaports, fertilisers and hospitality.

The bank announced that its unconsolidated net profit had reached VND1.39 trillion in the first quarter of this year, 60.4% higher than last year, helped in large part by growth in loans.

Its pre-tax profit also reached VND1.8 trillion in the first quarter, an 80.6% on-year increase, which met 20.66% its full-year pre-tax profit target set during the 2012 Annual General Meeting.

Among its key profit components, Vietinbank’s core business, or net interest income, stood at VND4.25 trillion in the first quarter, up 2.9% the same period last year.