First AGM in two years to review 2015 and 2016, plan for 2017, and elect leadership positions.
After not holding an annual general meeting (AGM) last year, Sacombank will hold its 2017 AGM on April 28 in Ho Chi Minh City, with its Board of Directors (BoD) expected to have seven members in the 2017-2021 period.
The new Supervisory Board is expected to consist of four members, up from three, while the next BoD is expected to remain unchanged in number, with one independent member and at least half of members not participating in or managing the bank’s daily operations. The specific number, however, will be decided at the meeting.
The AGM will discuss profit distribution plans for 2015 and 2016 while reviewing the bank’s business performance over the last two years. Key business targets for 2017 will also be revealed. The deadline for submitting nominations for open positions is no later than April 10.
At an average price of VND10,900 ($0.48) per share, Chairman Mr. Kieu Huu Dung spent some VND3.3 billion ($144,000) on acquiring his first 300,000 Sacombank shares on March 3 after being in the position since 2014.
In recent changes to the bank’s BoD, Mr. Tram Be and his son Mr. Tram Khai Hoa resigned as members of the management board on February 24, which was part of a government plan to reform the banking system, the State Bank of Vietnam (SBV) said.
The Ho Chi Minh City-based Sacombank is the country’s fifth-largest partly-private bank in terms of total assets, which were estimated at VND290.86 trillion ($12.77 billion) after it merged with Phuong Nam (Southern) Bank in 2015, with the central bank taking over all Sacombank shares owned by then Deputy Chairman Mr. Be.
Post-merger, Mr. Be authorized the Vietnam Asset Management Company (VAMC) to take over his entire holdings and those of related shareholders in Sacombank if the lender was to be consolidated. This authorization was conducted upon the SBV’s request.
“Mr. Be and related parties have the responsibility to continue resolving outstanding issues at Sacombank in accordance with existing laws,” the central bank statement said.
The bank’s business performance has experienced a downturn after being merged with Southern Bank in 2015. It recorded pre-tax profit for 2016 of just VND531 billion ($23.4 million), down 64 per cent year-on-year, and after-tax profit of VND372 billion ($16.4 million). Its charter capital remained at VND18.85 trillion ($832.6 million) as at December 31, 2016.
Total assets stood at VND333.3 trillion ($14.7 billion) at end-2016, up 14 per cent from the beginning of the year. Customer lending was VND198.8 trillion ($8.8 billion), up 6.9 per cent, while customer deposits reached VND291 trillion ($12.85 billion), up 11 per cent.
In January, Sacombank was named one of the top five banks to undergo restructuring in 2017, together with the four banks the central bank acquired at a price of zero Vietnam dong in 2015: VNCB, PG Bank, Ocean Bank and Dong A Bank.
Mr. Dung declared that Sacombank is not a weak bank, pointing out that it still leads the commercial group. He also revealed that many potential investors are keen to lend a hand to address the consequences of the Southern Bank merger and, in the meantime, the bank’s restructuring plan is to be submitted to the central bank.
In the latest news, the restructuring plan for five weak banks has been submitted to and approved by the Politburo. The SBV encourages mergers and acquisitions (M&As) for weak credit institutions on a voluntary basis with relevant rights for both parties assured. This will become compulsory, however, if the institutions do not volunteer.