HANOI: The Vietnam Bank for Industry and Trade (Vietinbank), the Bank for Foreign Trade of Vietnam (Vietcombank) and the Bank for Investment and Development of Vietnam (BIDV) announced their merger plans at their recent shareholders’ meetings.
Vietcombank will acquire Saigon Bank for Industry and Trade (SaigonBank), BIDV will acquire Mekong Housing Commercial JS Bank (MHB) and Vietinbank will buy Petrolimex Group Commercial Joint Stock Bank (PGbank). After the merger is completed, will thre be any change in the hierarchy of the three of four state-owned commercial banks in Vietnam?
After the merger, Vietinbank will still be the biggest.It is estimated that after the merger, Vietinbank will still have the largest charter capital and the largest network compared with Vietcombank and BIDV.
Specifically, according to documents released by Vietcombank and Saigonbank, if the two banks are merged, the merged bank will have chartered capital of VND29,730 billion, including VND26,650 billion of Vietcombank and VND4,000 billion of SaigonBank.The network of transaction offices will be 534, including 450 of Vietcombank and 84 of SaigonBank.
The total assets after the merger will be VND656,520 billion, of which VND640,000 billion are of Vietcombank and VND16,520 billion SaigonBank.The total loans by the end of 2014 were VND334,532 billion, of which VND323,332 billion are at Vietcombank and VND11.200 billion at SaigonBank. It is expected that in 2015, Vietcombank’s credit growth will be 13%.
BIDV recently announced at its meeting of shareholders 2015 that the merger with MHB will be completed on May 25.After the merger, the bank will have charter capital of VND31,512 billion, of which VND28,112 billion is with BIDV, and VND3.400 billion with MHB. The network of transaction offices will increase to 171 branches and 787 transaction points.
Total assets of the bank after the merger will be more than VND695,000 billion, with VND45,313 billion at MHB and VND655,000 at BIDV.Total loans by the end of 2014 were VND491,605 billion, including VND461,000 billion at BIDV and VND30,605 billion at MHB. The bank expects credit growth of about 16% this year.
If the merger of BIDV and MHB goes according to plan, this will be the fastest merger deal. The factor considered to be advantageous for the merger is that public shareholders hold up to 90% capital in the two banks.After the merger with PGBank, Vietinbank will still be the leading bank among the listed banks in terms of total assets and market share of lending.
Accordingly, the bank will have chartered capital of VND40,234 billion, of which VND37,234 billion is with Vietinbank and VND3.000 billion with PGBank.Total assets of the bank by the end of 2014 were VND600,039 billion, including VND574,260 billion with Vietinbank and VND25,779 billion with PGBank.
The total outstanding debt was VND454,507 billion, with VND440,000 billion at Vietinbank and VND14,507 billion at PGBank. It is expected that the bank’s credit growth will be about 13 -15% in 2015.The bank after the merger will have 168 branches and 1,063 transaction points, located in the top third of the entire system, behind Agribank and Lienvietpostbank.
