Foreign bank acquires a securities company with capital of hundreds of billions

Public Bank Vietnam is a 100% foreign-owned bank - Photo: PBV

Public Bank Vietnam - a 100% foreign-owned bank - has just announced that it has received a transfer of 100% of its capital contribution at RHB Vietnam Securities Company Limited.

Also according to information from this bank, the Vietnam Securities Commission has approved the above transfer transaction.

"Except for objective reasons, this transfer transaction will be completed in the third quarter of 2024," the bank said.

The agreement between Public Bank Vietnam and RHB Bank (Malaysia) on receiving the transfer of capital contribution at RHB Securities Vietnam took place since February this year.

According to the website introduction, Public Bank Vietnam is a 100% foreign-owned bank owned by Public Bank Berhad, Malaysia.

This bank was converted from the joint venture bank VID Public with a 50-50 capital contribution ratio between the Bank for Investment and Development of Vietnam (BIDV) and Public Bank Berhad, Malaysia.

According to information from the 2023 financial report, Public Bank Vietnam's charter capital is 6,000 billion VND with a total of 1,121 employees.

Regarding business performance, this foreign bank's net interest income reached 1,481 billion VND last year, while its after-tax profit was more than 436 billion VND.

RHB Vietnam Securities, formerly Vietnam Securities Joint Stock Company, was established in Vietnam in 2006.

Following the transfer from VSEC, the owner of this securities company is RHB Investment Bank Berhad, established in Malaysia.

At the end of March 2024, RHB Securities had a total of 23 employees. The initial charter capital was 9 billion VND, increasing to 135 billion VND in 2009.

RHB Securities' revenue is quite small, with the first quarter of this year only reaching over VND4.25 billion, a slight decrease compared to the same period last year. After deducting expenses, this securities company lost VND5 million.

RHB's total assets as of the end of March this year were over VND187 billion, including VND67 billion deposited at Public Bank Vietnam and over VND80 billion in margin loans.

Source: https://tuoitre.vn/ngan-hang-ngoai-thau-tom-mot-cong-ty-chung-khoan-von-tram-ti-20240625173841303.htm