Eximbank has undergone another senior personnel reshuffle following its stock being placed under injunction on the southern stock exchange.
The Ho Chi Minh City-based lender recently accepted the resignation of Cao Xuan Ninh, a member of Eximbank’s Board of Directors (BOD). Ninh was elected as a board member last mid-December, at Eximbank’s unusual general meeting. His tenure was supposed to end in 2020.
At the beginning of April, Eximbank’s stock (EIB) received a warning from the Ho Chi Minh City Stock Exchange for misleading its investors. Not long afterwards, Eximbank appointed Le Van Quyet as the bank’s new general director, pending approval from the State Bank of Vietnam.
Prior to his appointment, Quyet had only been a member of Eximbank’s BOD since December 15, 2015. He replaced Tran Tan Loc, who formerly served as the bank’s acting general director. Loc, meanwhile, has been assigned as Eximbank’s standing deputy general director.
Eximbank’s major shareholders include Japan’s Sumitomo Mitsui Banking Corporation, Vietcombank, and VinaCapital’s Vietnam Opportunity Fund, which hold 15.07, 8.24, and 4.99 per cent of the bank’s stakes, respectively. The remaining shares are held by private individuals.
In order to remove the warning that took effect on April 8, the bank has mapped out its business plan for 2016. Eximbank has set its pre-tax profit target at VND720 billion ($33.02 million) and its post-tax profit target at VND576 billion ($26.42 million). It also expects to recover a sum of VND298 billion ($13.66 million), as accounts receivable from a previous property sale.
Given the bank’s 2015 post-tax profit of VND576 billion ($26.2 million), factoring in the accounts receivable of VND298 billion ($13.54 million), and VND817.47 billion ($37.49 million) in accumulated losses, the bank will post an accumulated profit of VND57 billion ($2.61 million) for the year ending 2016, helping it to get from under its current injunction.
According to VinaCapital managing director Andy Ho, the bank will need some time to clear up its financial issues.
“Our investment standpoint is from a US perspective, meaning that they should gather up all the issues, replace personnel, and kick-start it all over again, instead of fleeing from their troubles or leaving them unattended. This is consistent with the bank’s present situation,” said Ho during an interview last week.