Revealing the “biggest” bank of the year
The recently published document of VPBank’s Annual General Meeting of Shareholders has shown the bank’s ambitious business strategy in the coming time.
Specifically, VPBank achieved a profit target of VND 29,662 billion in 2022, an increase of 107% compared to 2021. This plan is much higher than that of Techcombank (the target of VND 27,000 billion).
It is known that in the first quarter of 2022, VPBank’s profit reached more than 11,000 billion dong, equal to 1/3 of the whole year plan. The bank has recorded a sudden revenue from the extension of the exclusive insurance distribution cooperation agreement with AIA from 15 years to 19 years.
In addition, VPBank also plans to increase its capital to nearly 80,000 billion dong, through selling capital to foreign investors and paying dividends in shares.
VPBank also surprised investors more with the bank’s ecosystem expansion strategy.
Specifically, VPBank will submit to shareholders for approval the plan to buy OPES Insurance Joint Stock Company. It is known that this company has a charter capital of 550 billion VND, dealing in non-life insurance, health insurance business, reinsurance business, fund management and capital investment.
The specific amount of contributed capital/shares purchased depends on the agreement with the company’s existing shareholders and relevant regulations on the company’s legal model, ensuring compliance with the law and bringing the Company to the next level. OPES insurance shares became a subsidiary of the bank. The purchase price is expected to be no more than 1.5 times the book value of the company.
In addition, VPBank also submitted to shareholders for approval of additional capital contribution to ASC Securities Company with a maximum total investment/contribution of VND 15,000 billion.
Previously, in mid-January 2022, VPBank announced the purchase of more than 97% shares of ASC Securities JSC. Then, in February 2022, the company’s general meeting of shareholders approved the change of name to VPBank Securities Company (VPBank Securities). At the same time, the Board of Directors of ASC also submitted and approved the plan to issue shares to shareholders. Accordingly, this enterprise will offer more than 865 million shares to increase its charter capital to 8,920 billion dong, becoming one of the leading securities companies with charter capital in the market.
ASC Securities is a small securities company with a charter capital of 56 billion dong and has withdrawn from the securities brokerage business to restructure its business activities since 2016. With the acquisition and strong capital injection by VPBank, the company This stock is expected to change in the near future. If VPBank “plays big” to pour 15,000 billion dong, ASC may become the securities company with the largest charter capital in Vietnam.
In addition to the above two plans, VPBank also left open another M&A option. The Bank will submit to shareholders to agree on the policy and approve the plans/transactions VPBank will contribute capital/buy shares, establish or acquire subsidiaries, associate, cooperate, participate in plans to restructure/support credit institutions, weak credit funds or other forms with other businesses and credit institutions.
VPBank has abundant capital after selling 49% of FE Credit’s capital to Japanese investor SMBC last year. By the end of 2021, VPBank is one of the banks with the equity in the top group of the system, reaching more than 86,000 billion VND.
At the meeting with investors at the beginning of the year, Mr. Nguyen Duc Vinh, CEO of VPBank, said that the thickened capital base helps this bank to expand into other business segments, creating a high growth engine for the future. triple, quadruple in the next 5 years. The bank will focus on expanding the investment banking ecosystem, serving hundreds of thousands of high-end customers who have investment needs besides savings, loans, etc. such as bond investment, development consulting issuing bonds, fund certificates, securities brokerage, margin lending, etc. Securities companies will coordinate with banks to create better added value.
VPBank’s acquisition of a securities company and an insurance company is highly anticipated by the market, when the bank was very successful with the acquisition of a financial company in 2014. Specifically, this bank has acquired. Vietnam Coal Minerals Group Finance Company – a traditional financial company, and transformed into a consumer finance company with the brand name FE Credit. After only a short time, FE Credit beat foreign “big guys” such as Home Credit, Prudential to become the largest consumer finance company in Vietnam.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
