The board of directors of CMC Corporation late last week approved divestment at Bao Viet Commercial Joint Stock Bank (BaoVietBank).
The board authorised Nguyen Trung Chinh, Chair and CEO of CMC, to carry out procedures to transfer all BaoVietBank shares owned by CMC to other investors.
CMC is one of the founding shareholders of BaoVietBank, with contributed capital of VND324 billion (US$14 million) at the end of June this year.
BaoVietBank was established in January 2009 with initial charter capital of VND1.5 trillion, of which the contributed capital ratios of three founding shareholders Bao Viet Group, Vietnam Dairy Products Joint Stock Company (Vinamilk) and CMC were 52 per cent, 8 per cent and 9.9 per cent, respectively.
By the end of the first quarter this year, the shareholders were still BaoVietBank’s major shareholders holding more than 5 per cent of the bank’s charter capital, of which Bao Viet Group owned 49.52 per cent; Vinamilk 14.03 per cent; and CMC 10.3 per cent.
BaoVietBank has recently released information related to its business performance in the first six months of 2019. Accordingly, credit activities played a key role in bringing the bank a profit of nearly VND400 billion, up 49 per cent over the same period of last year.
The bank’s net profit from services also rose up by 53 per cent compared to the same period of last year, reaching more than VND43 billion.
By the end of June 2019, BaoVietBank’s total assets reached nearly VND52.16 trillion. The bank’s mobilised capital was VND32.26 trillion while its lending was VND24.98 trillion. The bank’s non-performing loan ratio was more than 3 per cent of total outstanding loans.
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