DongA Bank, Eximbank chairmen resign from posts

Wednesday, Jul 22, 2015 17:55

A transaction is carried out at DongA Bank. The chairman of this bank has offered his resignation. — Photo

HA NOI (Biz Hub) — DongA Bank chairman Cao Sy Kiem offered his resignation and withdrawal from the management board at the bank's shareholders meeting on July 21, citing "personal reasons".

Kiem was formerly the governor of the State Bank of Viet Nam (SBV). He joined DongA's management board in March 2012 and became chairman of the bank in April 2014.

He will continue to hold his position until an irregular shareholders meeting is organised to discuss the personnel issue.

Shareholders heard that the pre-tax profit DongA attained last year was not up to expectations, reaching VND35 billion (US$1.60 million), as new SBV regulations on asset classification had affected the establishment of provisional funds against risks.

However, they were also told that the bank was taking "slow but solid" steps in upgrading technology and infrastructure and renewing transaction services, as well as reorganising its operational structure and debts.

The bank's ratio of bad debt had soared from 1.69 per cent in 2011 to 3.95 per cent in 2012, continuing to 3.99 per cent in 2013, before easing to 3.76 per cent at the end of last year.

On July 21, Eximbank chairman Le Hung Dung also told a shareholders' meeting that he would not stand for election for the next managerial tenure.

He reportedly said he was "willing to step down" after the bank had faced sharp profit declines.

Eximbank posted a gross profit of VND69 billion ($3.17 million) in 2014, attributing unsatisfactory results to issues related to provision and settlement of non-performing loans.

The bank's profit improved during the first half of this year, reaching VND570 billion ($26.15 million), or 57 per cent of the target it had set for 2015. — VNS

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