LienVietPostBank plans to list on HOSE

Tuesday, Jun 16, 2020 11:34

Transactions at LienVietPostBank. LienVietPostBank plans to increase its charter capital by issuing shares to pay dividends for existing shareholders and offering to foreign investors. — Photo LPB

LienVietPostBank has announced a plan to shift its listing from the Unlisted Public Company Market (UPCoM) to Ho Chi Minh Stock Exchange (HOSE) in 2020.

In a report sent to shareholders, LienVietPostBank said that the shift aimed to improve its image and brand identity in both domestic and international markets.

The listing would also help enhance its share’s liquidity as the VN-Index is highly representative of Viet Nam's stock market and often used by investment funds as a benchmark to measure investment efficiency.

LienVietPostBank also planned to increase its charter capital by issuing shares to pay dividends for existing shareholders with a rate of 10 per cent in 2020. It would also offer foreign investors with a rate of less than 4.99 per cent.

LietVietPostBank has been one of the few banks paying dividends regularly since its establishment.

The bank said the capital increase was necessary to help them follow strict regulations on capital adequacy ratio (CAR) regulated by the State Bank of Viet Nam and meeting Basel II standards. This would also improve the bank’s financial capacity, operation scale and competitiveness in the following years.

According to the audited financial report, LienVietPostBank posted a pre-tax profit of more than VND2 trillion (US$86.1 million) in 2019, up 68 per cent year-on-year and surpassing 107 per cent of the yearly target. This was the highest pre-tax profit level since its establishment.

Of which, the service sector saw impressive results, especially bancassurance with a high growth rate of 217 per cent. It contributed to growth in service sector revenue in 2019 by 2.5 times over the previous year.

Other business targets also saw high growth such as capital mobilisation rising 20 per cent to VND166.1 trillion, outstanding loans increasing 16 per cent to VND140.8 trillion and total assets rising 15 per cent to VND202 trillion. — VNS

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