Leaders of Hanoi Building Commercial Joint Stock Bank (Habubank) have denied a rumour that the bank will merge into Saigon-Hanoi Commercial Joint Stock Bank (SHB).
SHB is waiting for approval from the State Bank of Vietnam for the merger
Despite not having confirmed merger, an anonymous official of SHB told Dantri/DTiNews reporters that the bank is waiting for approval from the State Bank of Vietnam (SBV) for the issue.
On the morning of March 13, Habubank issued an announcement saying, “The information floating around that SHB will acquire Habubank is incorrect and groundless.”
“Together with market development and in accordance with the Government’s policies, Habubank always welcomes any opportunities to cooperate with investors who can improve operations,” it said in the announcement.
Meanwhile, the SHB official shared, “SHB is a named in the list of fundamentally strong banks. We have been actively seeking partners in order to further expand our operations.”
Recently, there is a rumour that after a month of negotiations, Habubank will merge with SHB.
According to an earlier source that talked with Dantri/DTiNews reporters, leaders of the two banks have almost agreed on the merger and are in the process of seeking approval from the SBV.
The source also said that the merger of Habubank into SHB was entirely different from the recent Ficombank, SCB and TinNghiaBank merger as Habubank was voluntarily seeking a partner for the merger and was not an enforced merger.
While the merger between Sacombank and Eximbank was carried out amid public controversy, leaders of both SHB and Habubank have proven their goodwill towards merger, it noted.
In 2011, Habubank became the first bank to report losses of VND54.6 billion (USD2.61 million) in the fourth quarter of the year.
The bank recorded a fall of 42% in their net profits in 2011 at VND262.29 billion (USD12.56 million), compared to a year earlier.
As of December 31, 2011, Habubank’s assets totalled VND41.868 trillion (over USD2 billion), up VND3.88 billion (USD185.91 million) against a year earlier.
By that time, the bank had increased its registered capital to VND4.05 trillion (USD194.05 million), from a previous VND3 trillion (USD143.74 million). Its bad debt rate ran to 4.7%.
Habubank also recorded a decrease of 4.57% in its credit growth rate compared to 2010.
SHB’s pre-tax profit reached VND753 billion (USD36.08 million) in 2011, up 52% from a year earlier.
As of December 31, 2011, the bank’s total assets were valued at VND70.992 trillion (USD3.4 billion), up 39% from its initial figure.
The bank recorded a credit growth rate of 20%, with a bad debt rate of 2.1% during the year.
According to the SBV’s latest report, nine fundamentally weak banks remain, representing a combined 6% of market share. The SBV is intensifying oversight over these institutions and urging them to pursue restructuring.
SBV Governor Nguyen Van Binh said several investors are seeking to acquire some of the country’s failing banks but the SBV would only approve a merger that would ensure heightened operation and improved management.
