Maritime Bank sold its entire stakes acquired in Military Bank

By Minh An - Aug 16, 2017 | 11:12 AM GMT+7

TheLEADERThanks to this deal, Maritime Bank reported a hefty profit in the second quarter of 2017.

Maritime Bank sold its entire stakes acquired in Military Bank
Photo: Internet

Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank, code MSB) has sold more than 81 million shares that it has already acquired in Military Bank (MB Bank). This number is equivalent to 4.83% of MB Bank's charter capital.

The deal was done at a price that was beyond the margin of MB Bank stocks. Therefore, investors could not observe the transaction on the electronic board when it happened. MBB's share price has nearly doubled since the beginning of this year and reached VND22,900 (roughly US$1.01) per share on August 15th.

The buyer has spent nearly VND2 trillion (approximately US$88.1 million) on this transaction based on Maritime Bank's recorded profits and costs of capital of over VND1,149 billion (about US$50 million), according to the financial statement announced in early August.

The profits from the transaction has helped banks to report a net profit of VND561 billion (about US$24.7 million) in the second quarter. In the previous quarter, this bank suffered a loss of VND31 billion (about US$1.3 million).

Meanwhile, the core business of the bank is shown by the fall of 10% in the net interest income in the first half of this year, compared to the same period last year. Also, Maritime Bank's customer lending decreased by 2.8% while customer deposits rose 3.6%.

Last year, Maritime Bank also transferred 64.2 million MB shares to institutional investors managed by DragonCapital. This transaction helped the bank reduce its stake in MB to less than 5% to meet regulatory requirements.

Despite having divested from MB, Maritime Bank still holds shares in two other banks namely PGBank and PVCombank with the rate of 9.98% and 4.66% respectively.