After M&A, Public Bank Vietnam Securities received an additional VND 865 billion from the parent bank

After M&A, Public Bank Vietnam Securities received an additional VND 865 billion from the parent bank

Public Bank Vietnam decided to contribute an additional VND865 billion in cash just four months after the acquisition of this securities company.

According to the announcement from Public Bank Vietnam Securities Company Limited, Public Bank Vietnam Limited (Public Bank Vietnam - the organization owning 100% of the capital) has approved increasing its charter capital by VND865 billion to VND1,000 billion.

“Public Bank Vietnam will contribute additional capital in cash,” the bank’s decision said. The company will then submit an application to increase its charter capital to the State Securities Commission. After receiving approval from the agency, the bank will transfer the money to the blocked account of Public Bank Vietnam Securities Company Limited.

Public Bank Securities Vietnam Company Limited, formerly RHB Securities Vietnam Company Limited, was established on November 27, 2006 with a charter capital of VND 9 billion. In 2009, RHBIB became a strategic partner after acquiring 49% of shares. By 2018, RHBIB completed the acquisition of 100% of capital, then changed the name of this securities company to RHB Securities Vietnam and switched to a one-member limited liability company model from 2019.

Recently, on June 4, the State Securities Commission approved the transfer of 100% of the capital in this securities company between Public Bank Vietnam and RHB Investment Bank (Malaysia). On June 21, the State Securities Commission (SSC) granted a license to change the name. Thus, 4 months after changing ownership, Public Bank Vietnam Securities Company Limited received a large additional capital injection.

In the third quarter of 2024, the business results of Public Bank Securities Vietnam have not escaped the loss. Revenue in the third quarter continued to be modest and decreased by 21% compared to the same period due to a decrease in revenue from securities brokerage activities and profits from investments. The loss after tax in the last quarter was more than 2.2 billion VND.

Public Bank Vietnam is a 100% foreign-owned bank, owned by Public Bank Berhad (Malaysia). This is also a bank converted from one of the first joint venture banks in Vietnam between BIDV and Public Bank Berhad (Malaysia) established in March 1992. By the end of 2023, the Bank's charter capital will be VND 6,000 billion and total assets will be VND 49,327 billion.

Recently, ACBS - a securities company also 100% owned by the bank - has just announced a plan to increase its capital to 10,000 billion VND. Asia Commercial Joint Stock Bank (code ACB , HoSE) - the parent company of ACBS has "finalized" increasing ACBS's capital by 3,000 billion VND. This is the third capital increase of this securities company in the past year.

Previously, this securities company increased its capital from VND 3,000 billion to VND 4,000 billion in the fourth quarter of 2023; and continued to increase to VND 7,000 billion in the first quarter of 2024. Many securities companies with large additional resources from parent banks are strongly expanding their operations recently. In particular, Techcom Securities, of which Techcombank is the parent company's shareholder, is climbing rapidly in the market share rankings and has just entered the top 3 in the third quarter.

Source: https://baodautu.vn/hau-ma-chung-khoan-public-bank-viet-nam-nhan-them-865-ty-dong-tu-ngan-hang-me-d228146.html