LienVietPostBank’s new chairman Nguyen Duc Huong has rejected rumours that his bank will merge with Sacombank. - Photo dtck.vn

LienVietPostBank’s new chairman Nguyen Duc Huong has rejected rumours that his bank will merge with Sacombank.

For the past few days, there have been rumours that the two banks would merge, which has led to a 60 per cent rise in LienVietPostBank’s shares to VND13,000 per unit.

However, Huong, who was voted to LienVietPostBank’s chairman on June 5, clarified that LienVietPostBank has no need to merge with Sacombank, and that if it had a merger and acquisition (M&A) plan with another bank, it would not be with Sacombank. “We buy what we need, and Sacombank does not have what we need,” he said.

Huong said LienVietPostBank has a sufficiently wide distribution network, and is also not targeting Sacombank’s personnel. As for looking for a source of capital or modern technology, the bank will get it from foreign investors, not Sacombank, he said.

There are several reasons why LienVietPostBank will be the most attractive bank for foreign investors, if the central bank lifts restrictions on foreign ownership in domestic banks, Huong said.

Firstly, he said, with around 10,000 transaction offices nationwide, LienVietPostBank tops the country’s banking system in terms of network.

Secondly, compared to the value of its network and total assets, its charter capital is attractive at only VND6.5 trillion (US$285 million), that of a medium-sized bank.

The preparatory work done to get the bank listed on the stock market, and its ability to exploit and develop opportunities are also good, he added.

Speaking about long-term trends in the country’s banking system, Huong said that M&A plans must be implemented if banks want to grow and become more professional. Through M&A, the country should have only about 10-15 banks in all instead of 36 as currently and they should be the best. – VNS