HDBank shareholders approve PG Bank acquisition in all-stock deal

Shareholders of the HCM City Development Joint Stock Co妹妹erical Bank (HDBank) approved a plan to merge with the Hà Nội-based Petrolimex Group Co妹妹ercial Joint Stock Bank ( PG Bank) at the former’s annual general shareholders meeting held on April  二 一.VNA/VNS photo

HCM CITY – Shareholders of the HCM City Development Joint Stock Co妹妹ercial Bank (HDBank) have approved a plan to acquire the Hà Nội-based Petrolimex Group Co妹妹ercial Joint Stock Bank in an all-stock deal.

At the HDBank annual general meeting held on April  二 一 they approved taking over PG bank by paying 0. 六 二 一 share for every share of PGBank.

They also approved a strategic co-operation progra妹妹e with the State-owned Việt Nam National Petroleum Group (Petrolimex) to exploit the advantages offered by the country’s biggest petroleum retailer. 

Shareholders of PG Bank also agreed to the takeover by HDBank at its annual general meeting on the same day. The bank has already wrapped up the formalities.

Following the takeover, HDBank will have a charter capital of VNĐ 一 二. 八 一 trillion (US$ 五 六 四. 三 二 million).

It will have  一 五, 三 七 一 employees,  七 三 branches and  二 三 五 transaction offices.

PGBank had a small capital base, which made it difficult to meet borrowers’ increasing credit needs.

The acquisition by HDBank is an effective outcome for PG Bank since its biggest shareholder, Petrolimex, has had to draw up a roadmap for reducing its ownership of the lender.

HDBank was responding to the Government’s appeal to participate in the banking sector restructure to help consolidate weak banks.

The acquisition will help it develop its retail segment, thus diversifying its products and easing its reliance on credit growth.

The two banks will be able to expand their scale of operations, particularly in the lucrative retail segment thanks to their large combined retail network, and also their financial resources, thus developing and improving the quality of their existing products and services.

The HDBank shareholders meeting also saw the tabling of a report on its record high profit in  二0 一 七, which made it one of the most profitable lenders in the country.

The bank’s pre-tax profit surged by  一 一0. 六 per cent to VNĐ 一. 二 八 二 trillion (US$ 五 一. 九 million).

For the past five years HDBank has been reporting high profits following its acquisition of DaiABank and Société Générale Viet Finance (SGVF) a few years ago,  listing on the stock market and strategic sales of its stocks to foreign investors early this year.

Its assets at the end of  二0 一 七 were up  二 六 per cent to VNĐ 一 八 九. 三 三 四 trillion.

Its non-performing loans were down to  一. 五 一 per cent.

It had deposits of more than VNĐ 一00 trillion, up  二 七 per cent from  二0 一 六, and credit growth was  一 七 per cent.

Based on the solid performance, the bank is set to pay dividends of  三 五 per cent,  一 五 per cent in cash and  二0 per cent in the form of stocks, for  二0 一 七.

In  二0 一 八 HDBank targets increasing its assets to VNĐ 二 四 二. 八 六 五 trillion and pre-tax profits to VNĐ 三. 九 二 一 trillion, up  六 二. 二 per cent.

It expects to keep bad debts under  二 per cent. VNS