MB finalises strategy for acquisition of distressed bank

April 22, 2024 | 16:33

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At Military Bank's (MB) AGM on April 19, CEO Pham Nhu Anh revealed that the bank has completed all necessary procedures for the compulsory transfer of a troubled bank, with a target completion date set for this year or 2025, contingent on government approval.

MB finalises strategy for acquisition of distressed bank

Luu Trung Thai, chairman of MB

"We have finalised our proposal for the transfer and submitted it to the State Bank of Vietnam for government review. We aim to finalise this transaction this year or next, which would provide MB with new opportunities for growth, especially in terms of credit expansion," Anh said.

Luu Trung Thai, chairman of MB, added, "We are fully prepared for this task, with only the government's approval pending."

During a banking conference at the start of the year, Thai called on the government to fast-track the approval process for the transfer within the first quarter.

The identity of the troubled bank MB intends to acquire was not disclosed during the shareholder meeting. However, information shared by a bank executive last year indicated that the bank in question had accrued losses of approximately $833 million and had a non-performing loan ratio of 47 per cent.

This points to the likely acquisition of Oceanbank, previously taken over at no cost due to its severe financial difficulties.

Besides Oceanbank, there are four other financial institutions under special supervision: Construction Bank, Global Petroleum Bank, DongA Bank, and Saigon Commercial Bank.

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By Celine Luu

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