Shareholders of Sacombank cast votes on the bank's merger with smaller lender Southern Bank. Photo courtesy of Tuoi Tre
Sacombank, Vietnam's ninth-biggest bank by assets, will merge with smaller local lender Southern Bank, following shareholders' approval, Sacombank said in a statement on Tuesday.
Unlisted Southern Bank, or Phuong Nam as it is known locally, is 20 percent owned by Singapore's United Overseas Bank .
Sacombank's management board would draft a detailed plan for the merger, the statement said. It gave no timeframe for the move.
On Tuesday, Sacombank shareholders also approved expansion of loans by 13 percent in 2014 to 124.6 trillion dong ($5.9 billion). Its annual gross profit is projected to rise 6 percent from last year to 3 trillion dong, the statement said.
Sacombank shares ended up 0.96 percent on Tuesday at 21,100 dong ($1) each.