SCB will consider selling shares in 2019 after the restructuring is completed. (Photo: SCB)Hanoi (VNS/VNA) -Despite the current increasing foreign investment inflows, merged and acquiredbanks will consider selling stakes to foreign investors after completing therestructuring to up the attractiveness of sales, bank officials said.
After the merger and acquisition (M&A) process, most banks such as SaigonCommercial Bank (SCB), Sacombank, Saigon-Hanoi Bank (SHB), and Maritime Banksaid they are now still focusing on promoting restructuring.
CEO of the Saigon Commercial Bank (SCB) Vo Tan Hoang Van said his bank’sfinancial situation had improved remarkably under the restructuring process asit accelerated bad debt settlement and cleaned its balance sheet.
SCB will consider selling shares in 2019 after the restructuring is completed,Van said, expecting that the move to attract foreign investment next year wouldbring more advantages to SCB as the bank’s business performance will be muchbetter than currently.
The Saigon-Hanoi Bank (SHB) is taking the same route. Do Quang Hien, SHB Chairman,said that many foreign investors are interested in buying SHB’s stakes.However, the bank would make sure the investors it attracts are those who havelong-term investment demands and the ability to support the bank in enhancinggovernance.
SHB’s board of directors wants foreign strategic shareholders to be economicorganisations that have long-term investment demand as well as clear managementand governance policies to participate in the bank’s governance and providetechnological support to ensure its sustained development, Hien said.
The bank expects to cooperate with financial groups and foreign investmentfunds to accelerate its retail segment, exploit capital sources and invest inVietnamese projects and businesses, he said.
This strategy will set the stage for SHB to make a breakthrough in 2018 and thefollowing years, facilitating profit and revenue growth,
Hien said.
Banking experts said it is reasonable for some merged or acquired banks to becautious and wait for good opportunities to find foreign partners and targetstrategic partners.
The experts explained after the M&A process, it will take banks severalyears to recover as they need to pay off bad debts. Banks eventually becomestronger after finishing the restructuring process, which in turn helps themeasier find the most suitable strategic investors.
Economist Tran Du Lich said that restructured banks need to enhance theirstrength through support from strategic partners. However, they must becautious in finding investors as foreign inflows to Vietnamese banks areincreasing but are mainly in the form of short-term investments, which does nothelp them enhance governance and improve technologies.-VNS/VNA
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