Dragon Capital becomes largest shareholder of VPBank

The divestment from FE Credit helped VPBank have more capital to put into business, increasing growth room.

By acquiring an additional 3.15 million shares, Dragon Capital has increased its ownership in VPB from 4.99 to 5.12 per cent. The value of VPB shares held by Dragon Capital is about VND8.376 trillion ($364.17 million).

The bank's annual report from last year said that no shareholder held more than 5 per cent at the end of 2020. Therefore, Dragon Capital has become the largest and only major shareholder of VPBank.

In particular, Dragon Capital's funds bought 3.15 million VPB shares. Of this, Vietnam Enterprise Investments Limited (VEIL) bought the most with 1.5 million shares, DC Developing Markets Strategies Pcl. bought 600,000 shares, CTBC Vietnam Equity Fund and Norges Bank bought 500,000 shares;, and Samsung Vietnam Securities Master Investment Trust fund bought 50,000 shares.

VPB shares have doubled since the beginning of the year. Since the sale of 49 per cent stake in FE Credit, the bank not only earned nearly $1.4 billion and planned to triple its charter capital by 2022 but its stock has grown even more strongly with record liquidity.

In 2021, VPBank plans to make a pre-tax profit of VND16.654 trillion ($724 million), an increase of nearly 28 per cent compared to 2020. However, Ngo Chi Dung, chairman of the Board of Directors, said that the board is putting pressure on the board of management to achieve a higher profit.

In the first quarter of 2021, VPBank's business results are very positive with a profit increase of 38 per cent, reaching more than VND4 trillion ($173.9 million). Of this, the profit of individual banks increased by more than 55 per cent on-year. The divestment from FE Credit provided VPBank with more capital to put into business, increasing growth room.