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(VTC News) – Although the most difficult times for the banking industry have passed, many banks are still experiencing price drops.
Stocks trading below par value
The Vietnam Debt Trading Company Limited (DATC) has announced an auction of shares in Orient Commercial Bank (OCB) and Saigon Commercial Bank (SCB). DATC surprised many by announcing an unusually low starting price. It seems that some... Bank rates continue to fall..
Accordingly, DATC will auction off 26.660 OCB shares at a starting price of 4.900 VND/share (equivalent to 130,6 million VND for all 26.660 shares).
In addition, DATC will also auction off 24.662 SCB shares at a starting price of 4.100 VND/share (equivalent to 101,1 million VND for all 24.662 shares).
Both These banks are all lowering their prices. Business performance was not truly good. According to OCB's Q2/2015 financial report, the bank's after-tax profit only reached VND 40,4 billion, a sharp decrease compared to VND 98,6 billion in the same period of 2014.
The reason for this decline is that OCB more than doubled its credit risk provisioning costs. While in Q2 2014, OCB only allocated VND 104,3 billion for provisions, this figure surged to VND 230,8 billion in Q2 2015.
However, even with the same credit risk provisioning costs, the profit of less than 150 billion VND is still very low compared to the bank's charter capital of 3,547 billion VND. This year, OCB wants to increase its charter capital to 4.500 billion VND. But with DATC selling OCB shares at only 5.000 VND/share, it will not be easy for OCB to issue shares at par value.
The business performance at SCB is even more dismal. The bank's after-tax profits in 2014, 2013, and 2012 were VND 90,2 billion, VND 42,6 billion, and VND 63,8 billion, respectively. These are very modest figures, considering that quarterly profits in previous years had reached hundreds of billions of VND.
This profit figure is even more modest when compared to its charter capital. SCB's charter capital increased from VND 12.294 billion to VND 14.294 billion at the end of April 2015. SCB is the fourth largest domestic joint-stock commercial bank in terms of charter capital, after Vietinbank, BIDV, and Vietcombank.
SCB and OCB are not the only bank stocks being sold below par value. Currently, on the OTC market, many bank stocks are in the same situation as SCB and OCB.
Specifically, in recent trading sessions, the successful transaction prices of TCB (Techcombank) ranged from 9.2000 VND/share to 9.800 VND/share, and MSB (Maritime Bank) from 3.500 VND/share to 4.200 VND/share,...
Assets decreased by 15.005 billion VND.
Some banks are lowering prices. This is also due to a sharp decline in assets. Recently, the State Bank of Vietnam published statistics on some basic indicators of the credit institution system in August 2015. Among them, the total assets of banks are one of the indicators that have received much attention.
Accordingly, the total assets of the entire system reached over 6,75 million billion VND by the end of August, an increase of 87.373 billion VND, approximately 1,31%, compared to the end of July. Compared to the July statistics report, the assets of state-owned commercial banks increased by 80.610 billion VND, equivalent to 2,63%.
Previously, Vietcombank caused a shock when it announced that its total assets in the first quarter of 2015 decreased by as much as VND 37.711,11 billion, equivalent to 6,54% compared to the end of 2014.
By the end of August, total assets at Vietcombank and other state-owned commercial banks increased slightly, but in the group of joint-stock commercial banks, total assets at the end of August decreased by 15.005 billion VND.
Notably, while total assets decreased, the charter capital of the credit institution system increased again at the end of August. In July, this indicator unexpectedly decreased by 3.350 billion VND.
The increase in charter capital reached nearly 4.178 billion VND. However, this increase mainly came from joint venture banks, foreign banks, and finance and leasing companies. In state-owned and joint-stock commercial banks, the change was insignificant.
The equity capital of the entire banking system slowed down in August compared to the earlier months of the year. According to statistics from the State Bank of Vietnam, at the end of August, the equity capital of the entire system increased by VND 264 billion compared to the previous month, reaching VND 547.213 billion. Thus, since the beginning of the year, the equity capital of the credit system has increased by VND 50.640 billion (equivalent to a 10,28% increase).
Thanh Ha
Stocks trading below par value
The Vietnam Debt Trading Company Limited (DATC) has announced an auction of shares in Orient Commercial Bank (OCB) and Saigon Commercial Bank (SCB). DATC surprised many by announcing an unusually low starting price. It seems that some... Bank rates continue to fall..
Accordingly, DATC will auction off 26.660 OCB shares at a starting price of 4.900 VND/share (equivalent to 130,6 million VND for all 26.660 shares).
In addition, DATC will also auction off 24.662 SCB shares at a starting price of 4.100 VND/share (equivalent to 101,1 million VND for all 24.662 shares).
Both These banks are all lowering their prices. Business performance was not truly good. According to OCB's Q2/2015 financial report, the bank's after-tax profit only reached VND 40,4 billion, a sharp decrease compared to VND 98,6 billion in the same period of 2014.
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| SCB shares are being sold below par value. |
However, even with the same credit risk provisioning costs, the profit of less than 150 billion VND is still very low compared to the bank's charter capital of 3,547 billion VND. This year, OCB wants to increase its charter capital to 4.500 billion VND. But with DATC selling OCB shares at only 5.000 VND/share, it will not be easy for OCB to issue shares at par value.
The business performance at SCB is even more dismal. The bank's after-tax profits in 2014, 2013, and 2012 were VND 90,2 billion, VND 42,6 billion, and VND 63,8 billion, respectively. These are very modest figures, considering that quarterly profits in previous years had reached hundreds of billions of VND.
This profit figure is even more modest when compared to its charter capital. SCB's charter capital increased from VND 12.294 billion to VND 14.294 billion at the end of April 2015. SCB is the fourth largest domestic joint-stock commercial bank in terms of charter capital, after Vietinbank, BIDV, and Vietcombank.
SCB and OCB are not the only bank stocks being sold below par value. Currently, on the OTC market, many bank stocks are in the same situation as SCB and OCB.
Specifically, in recent trading sessions, the successful transaction prices of TCB (Techcombank) ranged from 9.2000 VND/share to 9.800 VND/share, and MSB (Maritime Bank) from 3.500 VND/share to 4.200 VND/share,...
Assets decreased by 15.005 billion VND.
Some banks are lowering prices. This is also due to a sharp decline in assets. Recently, the State Bank of Vietnam published statistics on some basic indicators of the credit institution system in August 2015. Among them, the total assets of banks are one of the indicators that have received much attention.
Accordingly, the total assets of the entire system reached over 6,75 million billion VND by the end of August, an increase of 87.373 billion VND, approximately 1,31%, compared to the end of July. Compared to the July statistics report, the assets of state-owned commercial banks increased by 80.610 billion VND, equivalent to 2,63%.
Previously, Vietcombank caused a shock when it announced that its total assets in the first quarter of 2015 decreased by as much as VND 37.711,11 billion, equivalent to 6,54% compared to the end of 2014.
By the end of August, total assets at Vietcombank and other state-owned commercial banks increased slightly, but in the group of joint-stock commercial banks, total assets at the end of August decreased by 15.005 billion VND.
Notably, while total assets decreased, the charter capital of the credit institution system increased again at the end of August. In July, this indicator unexpectedly decreased by 3.350 billion VND.
The increase in charter capital reached nearly 4.178 billion VND. However, this increase mainly came from joint venture banks, foreign banks, and finance and leasing companies. In state-owned and joint-stock commercial banks, the change was insignificant.
The equity capital of the entire banking system slowed down in August compared to the earlier months of the year. According to statistics from the State Bank of Vietnam, at the end of August, the equity capital of the entire system increased by VND 264 billion compared to the previous month, reaching VND 547.213 billion. Thus, since the beginning of the year, the equity capital of the credit system has increased by VND 50.640 billion (equivalent to a 10,28% increase).
Thanh Ha
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