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In late 2011 Ficombank, TinNghiaBank and Saigon Commercial Bank (SCB) merged into one due to their liquidity difficulty. The new bank came into operation in early 2012. SCB became the first merged bank in State Bank’s banking system restructuring scheme.
According to State Bank’s statement, the bank’s financial capacity was improved significantly. The improvement was due to such solutions as increasing chartered capital, calling for foreign investors’ capital contribution, reinforcing the collateral assets value and speeding up debt settlement process.
“SCB now can ensure the state’s assets safety, normal payment to customers’ deposits and can pay back all its refinanced loans,” said State Bank.
By the end of 2012, the bank had a total assets of VND148,697 billion ($7.1 billion), total mobilised capital of VND106,044 billion ($5.1 billion) and total outstanding loans of VND88,166 billion ($4.2 billion). The bank reaped a pre-tax profit of VND82 billion ($3.9 million).
In the first two months of 2013, the bank’s mobilised capital increased by 7 per cent against the end of last year.
SCB last week got approval from State Bank to raise chartered capital from VN10,584 billion ($508 million) to VND13,584 billion ($652 million).
State Bank required SCB to report to upcoming annual general shareholder meeting about the plan and required the bank’s shareholders not to use loan from SCB to contribute capital to the bank.
Previously, State Bank also approved the transference of SCB’s stake to foreign investors. Thus, since February 27, 2013, SCB shareholders structure can have the participation of individual foreign investors.