HDBank's shareholders have granted approval for HDBank’s participation in the restructuring of a credit institution in the form of mandatory transfer of a JSC Bank with the approval rate of 81.52 per cent of total voting shares.
According to the proposal, the participation in the credit institution restructuring programme is to implement the direction of the government and the State Bank of Vietnam (SBV) in restructuring the system of credit institutions, thus contributing to the healthy and stable development of the banking system and the economy.
Sharing with investors at his recent meeting, Pham Quoc Thanh, general director of HDBank said that, “Not so many credit institutions have been selected by relevant authorities to participate in this programme. This reflects not only the authorities’ trust in HDBank's ability to successfully restructure financial institutions but also their appreciation for the restructuring plan HDBank put together for the mission.”
In the banking sector, HDBank has successfully conducted two mega mergers and acquisitions (M&A), including the merger of a JSC bank and the acquisition of a financial company.
In 2013, HDBank merged with Dai A Bank. The transfer of the IT system was completed in a record-breaking four months. Following the merger, the bank continued to provide secure transactions for clients and improved living and working conditions for employees.
Also in 2013, HDBank became the first domestic financial institution to acquire a fully foreign-owned financial institution, Societe Viet Finance, a subsidiary of France’s Societe Generale banking group, the predecessor of HD SAISON Financial Co. Ltd.
These successful projects heralded a decade of rapid and steady expansion for HDBank, providing significant benefits to its clients, shareholders, partners, and employees.
The merger with Dai A Bank also contributed to the consolidation of the banking system as it encouraged more M&A deals in the banking sector. As a result, there has been a decrease in the number of banks with small capital and limitations in various aspects, which helps the financial and banking sector to gradually become healthier, more stable, and more efficient.
By taking part in the credit institution restructuring programme through the mandatory transfer of a specifically controlled JSC bank, HDBank once more demonstrated its pioneering spirit and willingness to fulfil the mission of the government and the SBV.
HDBank and the mandatorily transferred JSC bank shall be supported as prescribed in the Law on Credit Institutions and other relevant regulations. After HDBank accepts the mandatory transfer plan, the compulsorily transferred JSC bank would operate as a one-member limited liability bank. The compulsorily transferred JSC bank would remain an independent entity from HDBank. The financial statements of the mandatory transferred JSC bank would not be consolidated.
According to the regulations on mandatory transfer, HDBank is entitled to exclude the compulsorily transferred JSC bank when calculating the consolidated capital adequacy ratio. The capital contributed to the compulsorily transferred JSC bank is exempted from making provisions for investment devaluation and is excluded when calculating HDBank’s limits on capital contribution and equity investment.
HDBank shall support the compulsorily transferred JSC bank in enhancing its governance, management, technology infrastructure, risk management, and other appropriate measures.
The dividend policy, distribution of profit, and reserve funds of HDBank are unaffected by this mandatory transfer plan, and are separated from the business results of the JSC bank under the mandatory transfer during the implementation period of the mandatory transfer plan.
HDBank's Board of Directors believes that by undertaking the mandatory transfer of a JSC bank, HDBank is not only performing its tasks in the banking industry by leveraging the bank’s competence and experiences in bank restructuring but also capturing an opportunity to achieve a breakthrough in its business growth.
In particular, the preferential policy in granting an annual credit growth limit would support HDBank to achieve breakthrough growth, to gain more market share, and become one of the leading banks in the market in the next five years.
|According to a recent report by SSI's analysts, the mandatory transfer plan has positive long-term implications for HDBank. Meanwhile, international investors received this news with excitement and decided to increase investment to accompany with HDBank. |
In the first half of 2022, HDBank continues to maintain its high growth rate in terms of scale and quality.
The bank saw its profits up 26.5 per cent against last year’s period and completed 54 per cent of its yearly target. Its non-performing loan ratio remains among the lowest in the industry.
In August, HDBank was named in the leading group of JSC banks in Vietnam and the leading group of reputable and effective listed companies.
For five consecutive years, HDBank has been recognised as one of the Best Companies to Work for in Vietnam by HR Asia magazine.
In 2021, Global Brand Award also awarded HDBank as the Best Bank and Best Digital Transformation Bank in Vietnam. The bank was also honoured to receive a certificate of merit from the prime minister for its positive contributions to the fight against the Covid pandemic.
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