Acquiring PG Bank increases HDBank's expected profit up to over $200 million
By Ngoc Anh
April 25, 2018 | 10:11 AM GMT+7
Instead of VietinBank, HDBank is taking requisite steps to acquire PG Bank and the strategic deal is expected to finalize in this September after a merger request to be submitted to the State Bank in this month.
PG Bank will merge with HDBank
“The merger of PG Bank and HDBank will give HDBank an opportunity to become the top retail bank, small and medium enterprises (SME) and consumer finance bank in Vietnam,” said Nguyen Huu Dang, CEO of HDBank.
On April 20 2018, HDBank, also known as Ho Chi Minh city Development Joint Stock Commercial Bank and Vietnam National Petroleum Group (Petrolimex) signed a strategic cooperation agreement, which included the merger of Petrolimex Group Commercial Joint Stock Bank - PG Bank with HDBank.
The scene of the annual shareholders meeting. Photo: Cafef
Shareholders from HDBank and PG Bank approved the merger with a high consent proportion, 100 percent from PG Bank and 94.28 percent from HDBank.
Each share of PG Bank will be exchanged for 0.621 common stock of HDBank.
The positive effect from the strategic cooperation agreement with Petrolimex and the merger of PG Bank will help HDBank increase its business efficiency and deliver tremendous benefits to the bank, shareholders, partners and customers and employees.
Nguyen Thi Phuong Thao, vice chairwoman of the Board of Directors at HDBank said that HDBank will have a chartered capital of $673 million, 370 branches and transaction offices, over 15,000 financial transaction points upon merging with PG Bank.
Other financial indicators will sharply increase in 2018 with total asset value of $11.7 billion, total credit outstanding balance of $7.4 billion and particularly the estimated pre-tax profit of $206 million.
“PG Bank is a fairly clean bank as the majority of its shareholders are the State. Bad debt of this bank is also quite positive, it can definitely balance the bad debt of HDBank, at least making it better than now,” said Thao, in regards to the concern of shareholders on PG Bank's bad debt.
Since PG Bank is a relatively small scale bank, its weaknesses will not have much effect on HDBank after merging.
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