The stock market has continuously set a new peak over the last period, creating motivation for banks to quickly carry out plans to list stocks on the bourse. This move is considered to bring about opportunities to stock traders, though the differentiation among banks is increasingly clear.
TPBank (coded TPB) plans to list on Hochiminh City Stock Exchange (STC) right in April. TPB shares have also just ceased transactions since March 21 to carry out listing procedures.
Meanwhile, STC has just announced the approval for 555 million TPB shares to be listed on this bourse, with a total value of 5.550 trillion dong. As such, if the listing follows the plan, TPBank will be the second bank to list on STC in 2018, after HDBank.
In 2017, HDBank earned 1.2 trillion dong profit, after having put for risk provision, completing 155.6 percent of the yearly plan and increasing 70.5 percent from the implementation in 2016.
As of the end of 2017, TPBank’s total assets touched more than 124 trillion dong, the mobilisation reached 115 trillion dong and the non-performing loan (NPL) ratio was controlled at 0.87 percent.
Recently, TPBank has disclosed the business results in the first two months of 2018 with the pre-tax profit of 275.8 billion dong, nearly doubling the same period of 2017.
At OCB, Trinh Van Tuan, Chair of the Board said the Board will submit to the upcoming AGM the continued implementation of the plan to list on STC.
In 2018, OCB targets to achieve two trillion dong pre-tax profit, doubling from 2017; more than 100 trillion dong total assets; 115.7 trillion dong capital; mobilised capital growth of 36 percent; growth of oustanding loans to market Ilending to economic organisations and the people (excluding VAMC bonds) at 25 percent.
OCB also plans to increase capital from five trillion dong to 7.5 trillion dong in this year by making dividend payment to shareholders at 14.2 percent, selling to existing shareholders at 20.5 percent at 10,000 dong per share while the remaining will be mobilised from key officers and major shareholders of the bank via the share issuance.
Techcombank also plans to list on STC. This plan was approved by shareholders at the AGM organised at the beginning of March.
A noticeable point is that Techcombank continues making no dividend payment for 2017, the eight consecutive years that this bank retains profits, which, according to the bank’s leaders, aims at reinvesting to create financial advantages, thereby increasing the efficiency of capital use, and creating more added values for each share. However, this was also approved by shareholders.
Reportedly, after putting provision for funds, Techcombank’s remaining residual income is 9.345 trillion dong, equal to 80.17 percent stake.
With impressive business results along with price increase momentum of bank shares, Techcombank’s share price on OTC are now being traded around 60,000 dong each, even 95,000 dong per share, much higher than the 30,000 dong per share more than a year ago.
Apart from the aforementioned banks, LienVietPostBank also intended to shift its listing from Upcom to STC. In spite of not disclosing specific listing plans, the bank’s representative said the implementation will be carried out before 2020.
So far, 15 banks have listed shares on stock exchanges. On STC, there are eight banks including VCB, BID, CTG, MBB, VPB, HDB, STB and EIB. On Hanoi Stock Exchange (HNX), there are three banks including ACB, SHB, and NCB. Meanwhile, Upcom had four banks including VIB, LBP, KLB, and BAB. According to the estimate of Hochiminh City Securities Company (HSC), it is likely that 10 banks will list by the end of 2018.
In 2017, the stock market recorded remarkable growth, including a large contribution of banking stocks. A series of stocks such as BID, VCB, CTG, VPB, ACB, MBB, etc. broke the historical peak.
Recently, these stocks are under pressure to adjust after a long period of price increase. However, in the context that macro economy continues to remain stable and banking profit is forecasted to be positive thanks to improved credit, many commented that the room for bank shares still remains, especially “rockie” stocks, because these will be the motive to bring the group of “King” shares to set a new price level.
According to financial expert Huynh Trung Minh, listing shares not only helps investors make more choices, but also helps banks mobilise capital more easily, operate more transparently, Vietnamese finance and banking system integrate better into the international financial market.
“However, banking stocks will also have strong differentiation. Especially, after the restructuring process, the profits of some banks have increased sharply, while many banks still struggle with bad debts. Therefore, investors need to be cautious when investing”, said Minh.
