On October 9, 2019, the Governor of the State Bank of Vietnam (SBV) issued Document No. 7891/NHNN-TTGSNH, about establishing the branch of Vietnam Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) in Australia. Accordingly, the branch approved for establishment with full name Joint Stock Commercial Bank for Foreign Trade of VietnamAustralia Branch. The office was located in SydneyAustralia and had a branch funding of 71 million Australian Dollar.
Within 12 months from the date of approval of SBV, Vietcombank must complete the opening of a branch operation in Australia. Beyond this time limit, SBV’s written authorisation would automatically expire.
SBV’s written approval also stated that Vietcombank was responsible for: Complying with the provisions of the law on offshore investment and other regulations related to the establishment and operation of branches abroad; Carrying out procedures for establishing and opening Branches in Australia in accordance with local laws; Reporting in writing to SBV (via Banking Inspection and Supervision Agency) within 14 working days before the opening of Vietcombank’s Australia branch; Managing and monitoring the activities of the Australia Branches ensuring safety, efficient operation, in compliance with local regulations.
The approval of SBV to establish such a branch was in the plan discussed at the Annual general Meeting of Shareholders and approved by shareholders in April this year.
Recently, at the end of September, SBV also approved for Vietcombank to set up 31 transaction offices nationwide. Earlier, in June, the bank was issued an official operating license by the New York State Department of Financial Services (NYDFS) for Vietcombank’s Representative Office in New York City.
Not only had the excellent news gathered about network expansion, Vietcombank also recently announced impressive business results. Accordingly, in the first nine months of the year, profit before tax of the parent bank reached 17.25 trillion dong, increasing 51.9 percent over the same period in 2018, reaching 85.4 percent of the plan in 2019. Consolidated profit reached 17.592 trillion dong, increased by 50.6 percent over the same period, reaching 85.8 percent of the 2019 plan. The Return on Average Assets (ROAA) and Return on Average Equity (ROAE) ratios were 1.65 percent and 25.75 percent, respectively, sharply increased compared to 2018 and higher than the standard level. With this result, Vietcombank continued to hold the first position in terms of profit.
In the stock market, Vietcombank also continued to hold the top position in terms of market capitalisation. Particularly in the banking sector, VCB’s stock was currently at a high level, separated from all other banks. At the close of the trading session on October 9, VCB stood at 84,500 dong per share, with a market capitalisation of more than 313.4 trillion dong, equivalent to over $13.5 billion.
