A new chapter - new expectations at Eximbank

Eximbank welcomes a "new wave"

Vietnam Export Import Commercial Bank (Eximbank - HoSE: EIB) has just updated the list of shareholders owning 1% or more of the bank's charter capital.

Accordingly, Gelex Group Joint Stock Company currently holds nearly 174.7 million EIB shares, equivalent to 10% of the bank's capital. This is also the maximum amount that institutional shareholders are allowed to own according to the Law on Credit Institutions 2024.

Previously, on August 7-8, 2024, Gelex purchased 50 million and 39 million EIB shares respectively through transactions on the Ho Chi Minh City Stock Exchange.

Following the completion of the transaction, Gelex's ownership increased from 85.5 million shares, representing 4.9%, to 174.6 million shares, equivalent to 10% of the bank's charter capital.

Prior to Gelex's presence at Eximbank, Sumitomo Mitsui Banking (SMBC) was a strategic shareholder of the bank, holding a 15% stake.

List of Eximbank shareholders owning 1% or more of the capital.

Established in 1990, Gelex Group owns companies such as Viglacera, CADIVI electrical cables, EMIC electrical measuring equipment, THIBIDI transformers, etc. As of the end of June 2024, the company had a charter capital of VND 8,515 billion, equity of nearly VND 22,300 billion, and total assets of over VND 52,400 billion.

Besides Gelex's presence, another notable name appearing at Eximbank is Mr. Nguyen Ho Nam, who has been appointed as Vice Chairman of the bank's Board of Directors. Mr. Nam was previously the Chairman of the Board of Directors of Bamboo Capital.

Bamboo Capital is a diversified conglomerate with over 60 affiliated companies (focusing on renewable energy, real estate, construction, and finance). As of June 2024, Bamboo Capital had equity capital of VND 21,300 billion and total assets exceeding VND 45,300 billion.

Eximbank welcomes a new major shareholder amidst positive business performance. At the end of the first six months of 2024, Eximbank recorded net interest income of VND 2,870 billion, an increase of 23%. The bank reported after-tax profit of nearly VND 1,119 billion, up 4.6% compared to the first six months of 2023.

At the same time, Eximbank also plans to distribute cash dividends from accumulated undistributed profits up to 2023 after allocating funds, totaling VND 552 billion.

For the first time in a decade since 2014, Eximbank shareholders have received cash dividends again. After distributing cash dividends at a rate of 4% in 2024, Eximbank did not distribute any cash dividends between 2015 and 2023.

What are the opportunities for a "resurgence"?

However, the question remains whether this group of shareholders can help Eximbank return to its "golden age"?

Eximbank was established in 1989, initially named Vietnam Export Import Bank, with a registered charter capital of 50 billion VND, making it one of the first joint-stock commercial banks in Vietnam.

Despite its early beginnings, after more than three decades, the bank's chartered capital has remained at a medium level, at nearly 17,470 billion VND.

However, there was a time when Eximbank showed strong resilience. Specifically, during the period from 2007-2011, the bank achieved impressive growth results, with total assets increasing from VND 33,710 billion at the end of 2007 to VND 183,567 billion at the end of 2011. Within five years, the bank's asset size increased nearly 5.5 times.

At the same time, Eximbank's profits also increased sharply, from a pre-tax profit of VND 629 billion in 2007 to VND 4,056 billion in 2011.

However, by 2012, the profit level had decreased to 2,851 billion VND and gradually declined, with Eximbank reporting pre-tax profits of less than 100 billion VND in 2014 and 2015.

During the period from 2015 to 2021, Eximbank's total assets and profits gradually recovered, but they have not yet returned to their previous levels.

There was a time when the bank was embroiled in disputes between shareholder groups vying for control. This was evidenced by the constant changes at the top management of Eximbank.

From April 2019 to September 2021, Eximbank even left the position of General Director vacant. In September 2021, after two years, the Board of Directors of Eximbank officially appointed Mr. Tran Tan Loc as General Director. Currently, Mr. Nguyen Hoang Hai is serving as Acting General Director of the bank.

From 2019 to 2022, Eximbank repeatedly held unsuccessful General Shareholders' Meetings, resulting in the inability to approve decisions within the authority of the General Shareholders' Meeting, as well as documents related to the bank's business operations and development strategy.

In the documents for the 2019 extraordinary general meeting, specifically the petition requesting Eximbank to seek the State Bank of Vietnam's opinion on holding an extraordinary general meeting and proposing the addition of a new member to the Board of Directors, Eximbank shareholders also expressed their anxiety and unease over the bank's successive general meetings failing to approve any agenda items.

This shows that Eximbank's shareholders do not share the same views, are not united, and the existing conflicts among shareholders are deepening, leading to unsuccessful bank meetings, wasting money, time, and human resources, and affecting the rights of legitimate shareholders.

Over the past nine years, the "hot seat" of Chairman of the Board of Directors of Eximbank has constantly changed. From Mr. Le Hung Dung to Mr. Le Minh Quoc, then Ms. Luong Thi Cam Tu. Then it returned to Mr. Le Minh Quoc, followed by Mr. Cao Xuan Ninh, Mr. Yasuhiro Saitoh, and Mr. Nguyen Quang Thong. The cycle continued when Mr. Yasuhiro Saitoh once again assumed the position of Chairman. This was followed by Ms. Luong Thi Cam Tu and Ms. Do Ha Phuong.

On April 27th, Eximbank officially dismissed Ms. Do Ha Phuong from her position as Chairwoman of the Board of Directors following her resignation, which was approved by the Board of Directors on April 26th, 2024. Simultaneously, Mr. Nguyen Canh Anh was appointed to the position of Chairwoman of the Board of Directors for the seventh term (2020-2025).

With the arrival of a new Chairman and a new major shareholder, these two factors are expected to bring about significant changes at Eximbank in the near future.

In its latest analysis, MB Securities projects Eximbank's credit growth in the 2024-2025 period to be positive, with the main growth driver coming from wholesale and retail lending (which accounted for 36% of the bank's loan portfolio in 2023).

MB Securities assesses that Eximbank's asset quality will gradually improve over the quarters. Eximbank's bad debt coverage ratio will increase significantly in 2025.

Source: https://www.nguoiduatin.vn/chuong-moi-ky-vong-moi-o-eximbank-204240814203432195.htm