Major Vietnamese lender Sacombank set to expand after merger

Thanh Nien News

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The Sacombank's headquarters in Ho Chi Minh City. Photo credit: Saigon Times Online
Sacombank, one of Vietnam's largest partly private lenders, will see an increase of 68.4 percent in its assets after a merger with Phuong Nam Bank (Southernbank) later this year. 
The deal, to be completed in the final quarter, will raise Sacombank's assets to over VND290.86 trillion (US$13.31 billion), news website Saigon Times Online reported. 
Its charter capital will be over VND18.85 trillion ($863.18 million) while its bad debt ratio will be 3 percent.
According to the merger plan, one Southernbank share will be swapped for 0.75 Sacombank share, and the dividend rate after the merger will be 3 percent a year.
Sacombank stock closed at VND18,600 on Tuesday, stable from the level seen early this month. 
The merger is one of at least six mergers and acquisitions planned among commercial banks this year as part of the government's efforts to consolidate the overcrowded banking sector. 
Three similar deals took place last year.

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