What do banks calculate when pouring trillions into securities?
Vietcombank’s Board of Directors recently approved a plan to increase charter capital for securities companies under VCBS from 1,000 billion to 2,500 billion. The capital for implementation comes from Vietcombank’s contributed capital (VND 1,035 billion) and VCBS’ own capital (VND 465 billion).
After successfully raising capital, VCBS will approach two names in the TOP 10, which are ACBS (3,000 billion) and KB Securities (3,001 billion).
VCB’s move to increase capital for VCBS takes place in the context that banks tend to increase their influence in securities companies.
Recently, VPBank marked its return to the securities business by transferring nearly 26.2 million shares of ASC Securities Joint Stock Company (ASC), equivalent to 97.42% of charter capital.
At the recent annual general meeting of shareholders, ASC approved the change of name to VPBank Securities Company (VPBank Securities). At the same time, ASC shareholders also approved the plan to offer more than 865 million shares to increase charter capital to 8,920 billion dong, becoming one of the securities companies with the leading charter capital in the market. In which, VPBank will spend more than 8,400 billion VND to buy more than 842 million shares of ASC.
On VPBank’s side, this bank’s shareholder also agreed to supplement capital for ASC with a maximum total investment/contribution of up to 20,000 billion VND.
At MBS, shareholders of MB’s subsidiary have just approved the offering of 59.49 million shares to existing shareholders, the issue price is 10,000 VND/share. With the ownership of more than 79.4% shares, MB is expected to pour more than 470 billion dong to increase capital for MBS.
In 2021, ACB has injected additional 1,500 billion VND to ACBS, raising charter capital from 1,500 billion VND to 3,000 billion VND.
Previously, TPBank also “admitted” TPS into the ecosystem and brought people to hold key positions at this company from 2019. Not only that, TPBank also continuously poured money in capital increases. TPS’s recent “terrible” in order to maintain its ownership ratio and at the same time, TPBank Vice Chairman Do Anh Tu is holding the position of Chairman of TPS.
What do the bankers calculate?
According to the State Bank of Vietnam, there are currently 10 commercial banks owning securities companies to carry out activities of buying and selling stocks on the market. In addition, the State Bank also licensed a number of credit institutions to participate in the derivatives market in accordance with the provisions of the Securities Law.
The law does not allow credit institutions not to directly invest in shares, but can invest in shares through the establishment or acquisition of subsidiaries and associated companies to carry out buying activities. , sell stocks.
Meanwhile, the “boom” of the stock market in recent years has prompted banks to expand their business activities or increase capital inflows into securities companies to strengthen their financial potential. , increase profits.
“If 5 years ago was an opportunity for banking and consumer finance, the next 5 years would be an opportunity for securities and investment banking and VPBank would not miss this market opportunity. We see a great opportunity for a professional investment bank,” VPBank’s leaders said at the last shareholder meeting.
According to General Director Nguyen Duc Vinh, in the coming time, VPBank will basically buy 100% of capital at ASCS and make the company a member of VPBank’s ecosystem, helping the bank develop a variety of services.
“Buying a securities company is a strategic policy that the company’s leadership has decided to make, in order to return to the investment banking segment. The decision to divest from VPS Securities that VPBank made 5 years ago This was reasonable at that time, because at that time, the bank’s capital was not large, it had to focus on retail and consumer credit, but now, VPBank’s capital is abundant, allowing the bank to can return to develop the investment banking segment,” said Vinh.
Answering investors’ questions at the investor meeting on the afternoon of March 15, MB’s General Director Luu Trung Thai also confirmed that the bank did not intend to divest from MBS, because this is the nucleus to help MB complete its business. structure of leading financial groups.
In addition to the need to diversify business activities, holding a securities company will effectively support the bank in the issuance of valuable papers, especially in the context that this is an issuer group. most bonds.
Data from the Vietnam Bond Market Association (VBMA) shows that the bank leads the bond issuance activities in 2021 with a total issuance value of more than VND 233 trillion. In terms of stocks, this group is also the champion with over 10 billion shares put on the market.
With such a large demand, owning a unit specialized in securities will greatly assist banks in arranging and mobilizing capital in the issuance of valuable papers.
In fact, in most of the recent issuance of shares and bonds, banks have used affiliated securities companies as consulting units and organizations for registration, depository and even underwriting. .
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
