Pham Ngoc Long, CEO of VietinBank Leasing. VietinBank Leasing is wholly owned by VietinBank, operating in the field of financial leasing for businesses, individuals, households and other organisations. — Photo courtesy of VietinBank.

Vietinbank (CTG) has approved a plan to sell 50 per cent of its holdings in the bank’s financial arm Vietinbank Leasing Company Limited.

The bank will sell 49 per cent of its capital in Vietinbank Leasing to Mitsubishi UFJ Lease & Finance Co Ltd and 1 per cent to another domestic investor.

The bank’s Board of Directors also approved the plan to transfer the legal form of VietinBank Leasing, from single-member limited liability company to a limited liability company with two or more members.

VietinBank Leasing is wholly owned by VietinBank, operating in the field of financial leasing for businesses, individuals, households and other organisations.

By the end of 2019, total assets of VietinBank Leasing reached VND3 trillion (US$129.5 million), up 6 per cent compared to the beginning of the year.

Total revenue last year hit VND274 billion, an increase of 10 per cent compared to 2018, mainly from financial leasing activities which totalled VND272 billion, up 33 per cent compared to 2018. Total expenses were VND152 billion, a rise of 15 per cent year-on-year.

Total outstanding loans for financial leasing reached VND2.8 trillion, up 12 per cent compared to 2018. Non-performing loans ratio accounted for 0.4 per cent.

Pre-tax profit in 2019 was VND122 billion, down 7 per cent compared to 2018 mainly due to the rise in input costs.

Divesting capital from subsidiaries and associates is one of the options that help VietinBank increase its capital adequacy ratio.

Last year, Vietinbank also divested capital from Saigonbank, VietinBank Gold & Jewellery Co Ltd and VietinBank Fund Management Company Limited. — VNS