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Banking & Finance

PSI now a subsidiary of PVCombank

Released at: 16:03, 19/10/2016

PSI now a subsidiary of PVCombank

Photo: Duc Anh

PetroVietnam Securities to benefit greatly after PVCombank secures majority holding.

by Hung Nguyen

PetroVietnam Securities Incorporated (PSI) became a subsidiary of PVCombank after the latter increased its holding in the former from 9.32 per cent to 50.21 per cent on October 12.

“PSI will benefit from becoming a subsidiary of PVCombank, gaining access to its customer network, transaction points and office systems, enhancing PSI’s product diversification and cross-selling opportunities,” Mr. Nguyen Anh Tuan, Chairman of PSI, told VET.

PVCombank purchased shares from four previous shareholders: 22.5 per cent from Vietinbank Capital, 6.7 per cent from the Vietnam investment and Asset Trading Joint Stock Company (VNassets), 6.6 per cent from the PetroVietnam Trade Union Finance Investment Corporation (PVFI), and 4.6 per cent from the My Khe Vietnam Joint Stock Company (MKV), according an announcement from PSI on October 12.

The swap ratio between PVCombank and PSI is set at 1:1, according to a resolution from PSI’s 2016 annual general meeting.

PSI’s business plan is unlikely to undergo any significant change in the short term. “The business plan from earlier in the year will continue to be implemented,” Mr. Tuan said. “From 2017 the plan will be based on market circumstances and the general plan of PVCombank.”

PSI has secured all the benefits of investors, both local and international, and there is no change to its Board of Management, he further added. PVCombank did not provide any further information when contacted by VET.

PSI targeted total revenue of VND88 billion ($3.94 million) and profit of VND5 billion ($224,150) this year.

In the first half it recorded revenue of VND42 billion ($1.88 million), an increase of 12.6 per cent year-on-year. After-tax profit was VND2.5 billion ($112,075), compared to a loss of VND5.6 billion ($251,048) in the first half of last year. Operating costs fell 6.6 per cent to VND41.85 billion ($1.87 million), from VND37.115 billion ($1.66 million).

It also saw significant declines in total assets, by 43.18 per cent from VND1.12 trillion ($50.2 million) to VND636.52 billion ($28.53 million), due to falls in cash and equivalent.

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