Saigon Thuong Tin Commercial Joint Stock Bank plans to sell shares in an initial public offering of its securities unit by the end of 2010, the lender's chairman, Dang Van Thanh, said.
The fifth-biggest company by market value on the Ho Chi Minh Stock Exchange, known as Sacombank, would also sell shares in its leasing and asset management companies by the end of next year, he said.
"Sacombank will use only 25 percent of these companies' capital to invest in other businesses," Thanh told shareholders at a meeting in Ho Chi Minh City Friday.
The lender announced audited pretax profit of VND1.09 trillion (US$63.4 million) last year, a 25 percent drop from 2007, according to a report released at the meeting. The HCMC-based bank January 6 reported a pretax profit of VND1.2 trillion for 2008, or a 17.4 percent drop from the previous year.
Deposits rose 7 percent to VND58.6 trillion ($3.36 billion) and outstanding loans fell 1.8 percent to VND33.7 trillion, the bank said in the report. The bad debt rate was almost 1 percent.
Sacombank plans to raise its registered capital to VND6.7 trillion, from VND5.1 trillion as of the end of last year, by selling about 158.5 million shares at VND10,000 to existing shareholders, Thanh said.
However, Australia & New Zealand Banking Group Ltd., known as ANZ, which holds 10 percent stake in Sacombank, objected to the plan at the meeting. Thanh Nien Daily was unable to contact the Australian lender to find out the reason for its objection.
"ANZ's objection will not affect our plan as we can call on other interested investors to take over ANZ's rights to purchase shares,ââ‚¬ Thanh told Bloomberg in an interview.
The bank would set up a financial company by the second quarter next year, and upgrade its card center to a card company by the end of 2010, Thanh said.
SHAREHOLDERS OK PROPOSALS
Sacombank's shareholders at the annual meeting in HCMC approved nine key financial targets for 2009, including:
Increasing the chartered capital by 31 percent to VND6.7 trillion.
Issuing 76,737,462 shares equivalent to the 2008 dividend payment of 15 percent (whereby existing shareholders who own 100 shares will get 15 new shares)
Offering 76,737,462 shares on a rights basis to existing shareholders at the rate of 15 shares for every 100 held at face value and 5 million shares to the bank's key employees.
Total deposits shall exceed VND 83 trillion.
Total outstanding loans will reach at least VND50 trillion.
Total assets will reach at least VND 95.5 trillion.
Pretax profit will reach at least VND1.6 trillion.
Overdue debts will be less than 2.5 percent of total outstanding loans. ^ Increasing capital adequacy ratio to 12 percent from 10 percent.
The shareholders gave approval to equitize Sacombank's securities, leasing and asset management units.
They also approved a plan to establish a finance company and a card company as entities under Sacombank by 2010.