CMC Corporation to fully divest BaoVietBank

CMC Corporation will make a full exit from BaoVietBank

Accordingly, the board of members authorised Nguyen Trung Chinh, chairman cum general director of CMC, to transfer all BaoVietBank shares to other investors.

BaoVietBank was established in January 2009 with the initial charter capital of VND1.5 trillion ($65.22 million),52 per cent of which was contributed by Bao Viet Holdings, 8 per cent by Vinamilk, and 9.9 per cent by CMC.

At the end of June 2019, the bank’s capital was VND3 trillion ($130.43 million) with total assets of nearly VND51.2 trillion ($2.23 billion).

According to the financial report for the first half of 2019, the net profit was VND398.2 billion ($17.31 million), up 48 per cent compared to the same period last year.

However, the foreign exchange activities of BaoVietBank only contributed VND3.6 billion ($156,500) to its net interest (down 75 per cent) and securities activities brought only VND4.4 billion ($191,300, down 98 per cent).

Driven down by increasing operating cost, the pre-tax profit in the first half was only VND11 billion ($478,300), down 53 per cent compared to the same period last year. The after-tax profit also went down by 42 per cent to only VND10.5 billion ($456,500).

On September 13, the Board of Directors of BaoVietBank issued Resolution No.3596/2019/NQ-HDQT on the appointment of Nguyen Thi Thanh Huong as acting general director with immediate effect.

Reportedly, BaoVietBank's largest founding shareholder, Bao Viet Holdings (BVH) was still a major shareholder of CMC with 5.04 per cent as of June 30. However, in August, the shareholder structure changed after the company issued separate shares to Samsung SDS Asia-Pacific, reducing BVH's ownership to 3.78 per cent, effectively ceasing its status as a major shareholder.