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Banking & Finance

Eximbank reorganizes leadership roles

Released at: 14:24, 05/08/2017

Eximbank reorganizes leadership roles

Photo: Eximbank.com.vn

Bank undergoing major restructuring as part of the "New Eximbank" plan.

by Quang Huy

As part of the mid- and long-term strategic initiatives in its “New Eximbank” project, Eximbank is restructuring its head office to streamline the organization and improve efficiency in the decision-making process.

It has reorganized its existing nine divisions and centers/departments at the head office into seven divisions: corporate banking, retail banking, treasury, risk management, IT & operations, support, and strategic planning.

Meanwhile, its new Board of Management now comprises Chairman and CEO Mr. Le Van Quyet together with six Deputy CEOs: Mr. Tran Tan Loc, Mr. Dao Hong Chau, Ms. Dinh Thi Thu Thao, Ms. Van Thai Bao Nhi, Nguyen Ho Hoang Vu, and Mr. Vo Quang Hien.

Eximbank has also initiated an important new position to support the Board, that of Senior Director. Responsible for executing the bank’s business strategy, the Senior Directors are Mr. Bui Van Dao, Mr. Nguyen Van Hao, Mr. Le Anh Tu, and Mr. Masashi Mochizuki, as well as Head of the New Eximbank plan, Mr. Yutaka Moriwaki.

Eximbank has embarked on a new restructuring and strategic plan since the beginning of this year, called New Eximbank. Having restructured the Board, this is set to fulfill Eximbank’s mission of generating value for all stakeholders: clients, shareholders, employees, and communities, through the continuous growth of Eximbank’s business.

Through this restructuring, every Board member and each division will have clearer missions and functions and will take full responsibility in fulfilling tasks to support the branch network.

Like most other Vietnamese banks, Eximbank last year focused on recovering and resolving substantial non-performing loans (NPLs) under the guidance of the State Bank of Vietnam. According to its 2016 consolidated financial statement, NPLs rose from 1.86 per cent at end-2015 to as high as 5.3 per cent at end-June before falling to 2.95 per cent at end-December, thanks to the conversion of bad debts to bonds from the Vietnam Asset Management Company (VAMC).

On the profitability front, the bank saw better-than-expected business performance during the first half of this year, with the first quarter seeing VND170 billion ($7.48 million) in pre-tax profit and VND136 billion ($5.98 million) in after-tax profit, while net profit in the second quarter jumped 5.2-fold year-on-year to VND190 billion ($8.4 million).

In an interview with VET, Mr. Moriwaki said the absence of a sound business strategy and low staff morale caused by frequent leadership changes are unresolved issues facing Eximbank. This, though, will be dealt with by the “establishment of a fair and transparent human resources system, including setting key performance indicators (KPI) and performance evaluation processes (PEP) to motivate staff,” he said, adding that the restructuring plan will reorganize the decision-making process so that the responsibility of every manager and staff will be made clear.

Building the New Eximbank also relies on leveraging its wide distribution network, consisting of 209 locations and 265 ATMs, to expand its retail banking business, while also focusing on trade financing via the establishment of a wholesale banking division and short-term working capital loans to strengthen the bank’s traditional small and medium-sized enterprise (SME) business.

“At the same time, the bank’s credit risk management and NPL collection will be strengthened,” Mr. Moriwaki said, revealing that Japan’s Sumitomo Mitsui Banking Corporation (SMBC), a major shareholder, has already sent a trade finance expert to lead the wholesale banking division. 

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