The general director of Hanoi Stock Exchange (HNX) has approved the registration of stock trading of Saigon Commercial Joint Stock Bank for Industry and Trade (Saigonbank) with SGB stock code. This is the second bank approved by the HNX to list shares after Viet Capital Commercial Joint Stock Bank (code BVB) in 2020.
Accordingly, HNX allowed Saigonbank to bring 308 million shares to trade on the Unlisted Public Company Market (UPCoM) at par value of 10,000 dong per share, equivalent to a registration value of 3.080 trillion dong, equivalent to the bank’s current charter capital.
Both HNX and Saigonbank have not yet provided information on the first trading day of SGB as well as the reference price during the session.
Saigonbank will be the 20th banks to list shares on the public stock exchange (HCM City Stock Exchange, HNX and UPCoM).
Many other banks also have plans to list their stocks on the stock market this year, such as Saigon Commercial Joint Stock Bank (SCB), Nam A Commercial Joint Stock Bank (NamABank), Maritime Commercial Joint Stock Bank (MSB), An Binh Commercial Joint Stock Bank (ABBank), etc.
In the system of credit institutions (CIs) in Vietnam, Saigonbank is now in the small-scaled group. By the end of the first quarter of 2020, the bank’s total assets reached about 20.3 trillion dong, one of the lowest in the system. Regarding the bank’s financial indicators of the bank, it lending to customer was over 14.2 trillion dong, and customer deposits reached nearly 15.5 trillion dong.
In 2019, the bank recorded 864 billion dong of total revenue, up by two percent compared to the previous year. However, thanks to the reduction in provision expenses for credit risks, the bank attained a pre-tax profit of 181 billion dong, 3.5 times higher than the previous year. The profit after deducting corporate income tax was 145 billion dong, up by 245%.
In 2020, the bank targets total assets of 22.968 trillion dong, up by 0.6%; outstanding credit growth of 8.5 percent compared to the realised figure in 2019.
The bank’s leader also predicts a pre-tax profit of 130 billion dong for the whole year this year, down by 28%.
Saigonbank has four major shareholders holding more than five percent of charter capital. These are all units and businesses related to the State. In particular, HCM City Party Committee Office holds 18.18%, being the largest shareholder, Ky Hoa Tourist Trading One Member Limited Liability Company holds 16.35%, Saigon Petro Company Limited holds 14.08%, and Phu Nhuan house construction and business Company Limited holds 16.64%.
Saigombank currently has one foreign shareholder holding 4.944 percent of the bank’s capital. However, since the ownership rate has not reached the ratio to be a major shareholder, this foreign investor’s identity was not provided by the Vietnam Securities Depository (VSD).
Saigonbank has a subsidiary, namely Debt Management and Asset Exploiting Company Limited with a charter capital of 612 billion dong. This unit is wholly-owned by Saigonbank. It is the first debt trading company in the system of Vietnam’s joint stock commercial banks with operation since 2001.
