The merger with HCM City Development Commercial Joint Stock Bank (HDBank) is expected to be completed in 2018 but has not yet been successful. While waiting for the merger, the scale of Petrolimex Group Commercial Joint Stock Bank (PGBank) has slowed down, but the bank still recorded relatively satisfactory business results in 2018.
PGBank has announced its fourth quarter (Q4) 2018 financial statement. Specifically, the bank’s pre-tax profit was over 193 billion dong, up by 140 percent compared to 2017, while the provisions for risks were still high at 517 billion dong, up by 12 percent over the same period and accounting for nearly 73 percent of the bank’s net profit.
PGBank’s net interest income reached 883 billion dong, up by 12.6 percent over 2017. The net income from service activities slightly increased by 2.3 percent to 30.7 billion dong. Meanwhile, the income from foreign exchange trading rose by 38.8 percent to more than 42 billion dong. Notably, the bank’s income from other activities skyrocketed 55 percent to 268 billion dong. Only the bank’s securities trading declined by 30 percent with a modest profit of just above six billion dong.
PGBank’s total operating income grew by 19.88 percent to 1.230 trillion dong, while operating expenses slightly increased by 8.9 percent to 519.6 billion dong.
As of December 31st 2018, the total assets of PGBank were slightly up by 2.2 percent compared to the beginning of the year, reaching 29.935 trillion dong. In which, the outstanding loans to customers slightly increased by three percent to 21.829 trillion dong, and mobilisation from customers only increased by two percent to 23.345 trillion dong.
The total bad debts of PGBank were 653 billion dong, down by 37 billion dong over the beginning of the year and accounting for 2.96 percent of the bank’s total outstanding loans.
Previously, in September 2018, the State Bank of Vietnam (SBV) issued document to officially approve in principle the merger of PGBank into HDBank. In 60 days, HDBank would have to submit the SBV a set of documents applying for approval of merger as prescribed. However, until now, the deal has not been completed.
According to the plan, HDBank and PGBank will merge with a swap ratio of 1:0.621 (one PGBank share is swap for 0.621 HDBank share). HDBank will issue 300 million common shares to swap with PGBank’s shares. The bank’s charter capital after the issuance will be 12.810 trillion dong (9.810 trillion dong of HDBank) and three trillion dong of PGBank.
For HDBank, closing the year 2018, the bank recorded a pre-tax profit of 4.005 trillion dong, the highest in its history and up by 65.7 percent compared to 2017. In particular, service activities continued to be the bright spot with net income of 438 billion dong, nearly double 2017. HDBank’s asset size as of December 31st 2018 reached 216.108 trillion dong, up by 14.1 percent over 2017. The bank’s total mobilisation reached 191.588 trillion dong. Its equity rose up by 14 percent to 16.828 trillion dong.
Notably, HDBank continuously expanded its network in 2018 with an addition of 45 branches and transaction offices, raising the network scale to 285 units.
