Eximbank ranks second biggest joint stock banks

VNStockNews.com - After completing the plan to raise the chartered capital to over 7.219 trillion dong in 2008, Viet Nam Export and Import Commercial Joint Stock Bank (Eximbank) has become one of the two banks having the biggest chartered capital among commercial joint stock banks.

In a bid to promote competitiveness capacity, especially when Vietnam's financial market is opening up for foreign partners, Eximbank in 2009 continues planning to increase its chartered capital and the central bank has recently agreed to allow the bank to raise its chartered capital from 7.219 trillion dong to 8.8 trillion dong.

Accordingly, Eximbank will distribute surplus source from different phases of share issuance to its existing shareholders of previous years. In a recent meeting held on June 26, Eximbank agreed to finalise the list of shareholders that would be distributed shares from capital surplus with a ratio of 22 percent and issue shares to shareholders in August. Not long time ago, Eximbank advanced dividend of 8 percent in cash to its existing shareholders for the first phase of 2009.

Among commercial joint stock banks, Eximbank's chartered capital is lower than only two equitised state-owned banks, Vietcombank and Vietinbank. Compared to some banks of the same scope, Eximbank has big capital strength. This will facilitate banks to further develop against previous time. That means raising chartered capital will help the bank to have money to invest into technologies, expand operation networks as well as promote credit market including large credit contracts.

On July 7, Eximbank officially signed a co-funding contract worth $56 million for Mao Khe Thermo-electricity Plant of Vietnam Coal-Mineral Resource Group (Vinacomin). It is reported that Mao Khe Thermo-electricity Plant is built in Quang Ninh province with capacity of 440 MW and total investment capital of $577 million. The plant will come into operation in 2012 and supply some 2.6 billion KWh of commercial electricity a year.

Eximbank said that the bank in the upcoming time will continue financing big projects of Vinacomin that have been approved by the government and many projects in different areas. In the first six months, Eximbank has opened additional 10 transaction offices, bringing total transaction offices to 121. As scheduled, from now until the end of 2009, Eximbank will have additional 140 transaction points nationwide.

Closing the first six months, Eximbank reported pre-tax profit of 813 billion dong. This year, the bank expected to gain 1.5 trillion dong in pre-tax profit, nearly doubling the figure of last year. Based on the bank's results in the first six months, Eximbank said that it would be likely to over-fulfill the approved target for the entire year.

By June 30, Eximbank posted total assets of nearly 55 trillion dong; total subsidised loans of over six trillion dong, accounting for over 20% of total outstanding loans; total deposits of 40 trillion dong. (DTCK)