Vietinbank serves its customers in Ha Noi. Tha bank seeks M&A to expand its business. — Photo vietinbank.vn

HA NOI - The Viet Nam Bank for Industry and Trade (Vietinbank) will continually look for merger and acquisition (M&A) opportunities with other banks to expand its reach and market share.

Vietinbank Chairman Nguyen Van Thang said at the bank's shareholders meeting on Tuesday that in future M&As in the banking industry would be indispensable and Vietinbank would scrutinise more such deals if and when it sees a good business opportunity.

Vietinbank General Director Le Duc Tho also announced that Vietinbank expected to conclude a long awaited merger with PG Bank before September.

At the shareholders meeting last year, Vietinbank approved a merger plan with PG Bank. However, the merger has so far not been completed due to complicated procedures, as the State holds majority stakes in both Vietinbank and PG Bank.

At the meeting on Tuesday, Vietinbank reported a pre-tax profit of VND7.345 trillion (US$326 million) last year, up 0.6 per cent against the previous year.

The bank's non-performing loans (NPLs) by the end of last year stood at 0.73 per cent of its total outstanding loans.

Despite the good business results last year, Vietinbank said that it would not pay dividends in an effort to enhance the financial status to meet growth demands and safety requirements for funds regulated by the central bank.

Vietinbank this year targeted total assets of VND890 trillion, up 14 per cent against last year, while the charter capital would rise 32 per cent to VND49.2 trillion. Its pre-tax profit was also expected to increase 8 per cent to VND7.9 trillion.

At the meeting, Thang also said that Vietinbank has so far also contributed to help the business performance of Ocean Bank and GP Bank stabilise. Early last year, the central bank acquired Ocean Bank and GP Bank and appointed Vietinbank's officials to manage the two ailing banks.

Under Vietinbank's management, the two banks have so far registered good liquidity, Thang said, and added that a number of NPLs of the banks have also been retrieved. – VNS