MHB to merge with BIDV

April 06, 2015 | 16:00

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Mekong Housing Bank (MHB) and the Bank for Investment and Development of Vietnam (BIDV) are going to merge soon, according to the guidance of the governor of the State Bank of Vietnam (SBV).

photo: baodautu.vn

At present, MHB has submitted to the SBV its draft restructuring scheme for 2015. It has co-ordinated with BIDV to deploy the merger since the fourth quarter of 2014.

According to a report by the MHB’s board of directors, in 2014, the bank’s assets and total deposit reached over VND45 trillion ($2.07 billion) and VND37 trillion ($1.7 billion), reflecting respective increases of 17.4 per cent and 14.4 per cent compared to 2013. It made a pre-tax profit of VND162 billion (7.4 million), up 14 per cent on year.

Regarding BIDV business report, in 2014, its total asset value hit VND655 trillion ($30.2 billion), signifying an 18 per cent increase on year, while its total deposit value reached VND557 trillion ($25.6 billion). Its bad debt ratio decreased to 1.8 per cent, lower than the statutory ceiling of 3 per cent.

The deal between MHB and BIDV is one of six bank mergers and acquisitions that the SBV officially expects to be completed this year as part of a general effort to clean up the banking system.

On March 31, the Maritime Bank has officially announced that it would merge with the Mekong Development Bank, marking the first banking merger of 2015.

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