The HCM Stock Exchange (HOSE) on Tuesday approved the listing of more than 1.33 billion shares of Viet Nam Prosperity Joint Stock Commercial Bank (VPBank).

Information on the first trading day and the reference price of VPBank shares, code VPB, have not yet been disclosed, but Viet Capital Securities Company (VCSC), the bank’s share listing consultant, has forecast a list price of VND40,000 per share.

The bank’s market capitalisation is expected to be VND56.2 trillion (US$2.5 billion), which will make VPBank the largest private bank on the HOSE (based on market capitalisation), the VCSC said.

VPBank has targeted a consolidated net profit of VND8.5 trillion ($374 million) in 2018, 1.5 times the 2017 figure, the business news website cafef.vn reported.

The net profit of the parent bank is expected to reach over VND4 trillion, with the rest going to the VPBank Finance Company Limited (FE CREDIT). The bank will pay shareholders a 15 per cent dividend in 2018.

VPBank’s outstanding loans in 2018 are estimated to increase by 26.4 per cent against 2017 to over VND230 trillion.

This financial plan shows that VPBank is not likely to sell its consumer finance arm FE Credit in the near future as announced by the bank earlier, cafef.vn reported.

In 2017, the parent bank expects to earn a net profit of VND2.4 trillion, up 17.9 per cent against 2016 (excluding profits from subsidiaries), bringing VPBank’s consolidated net profit in 2017 to VND5.7 trillion.

In the first six months of 2017, VPBank’s profit touched VND2.6 illion, equivalent to 40 per cent of the annual target.

As of the end of June, VPBank’s total assets were VND250 trillion, much lower than those of the three largest state-owned commercial banks: BIDV (VND1 quadrillion), Vietinbank (VND1 quadrillion) and Vietcombank (VND850 trillion).

Regarding equity, as of end of June, VPBank’s equity was estimated at VND19.5 trillion, while the equity of BIDV, Vietinbank and Vietcombank were VND44 trillion, VND58 trillion and VND50.8 trillion, respectively.

However, if VPBank achieves the targets set for 2018, the bank’s profit will be equivalent to that of Vietcombank and even overtake BIDV’s and Vietinbank’s. — VNS