Possessing strong potential in terms of development history, a large customer ecosystem, a concentrated shareholder structure and a plan to move its headquarters to Hanoi, according to experts, Eximbank will soon return to the race of the Vietnamese banking industry.
Important milestones create positive changes
The banking and finance industry is on the threshold of major changes in the coming time, as technological factors, global economic fluctuations and monetary policies are simultaneously reshaping the market.
Established in 1989, Eximbank is one of the first joint stock commercial banks in Vietnam. Over more than three decades of development, the bank has built a stable financial foundation, a widespread branch system and a strong network of international partners.
With the advantage of focusing on the Southern region, Eximbank has established a loyal customer network including many large import-export enterprises and small and medium enterprises (SMEs). This gives the bank the opportunity to expand its services and grow its revenue sustainably.
Faced with major changes in the finance and banking industry, Eximbank took an important step when at the 2024 Extraordinary General Meeting of Shareholders, Eximbank shareholders approved the decision to move the Head Office from Ho Chi Minh City to Hanoi. Not only demonstrating the consensus of shareholders in expanding the market to welcome new potential, this move also shows the determination to create a new beginning, laying the foundation for strategic reforms in Eximbank's governance and operations.
Dr. Le Xuan Nghia, former Vice Chairman of the National Financial Supervisory Commission, said: Moving the headquarters to Hanoi helps Eximbank conveniently collect and process administrative and macroeconomic information; facilitate open market operations and foreign exchange transactions, which require quick information processing and decision making.
According to Dr. Nguyen Tri Hieu, founder of First Vietnamese American Bank in the US, the headquarters is the face of the bank and choosing the location of the headquarters is strategically important. The decision to move the headquarters from Ho Chi Minh City to Hanoi shows positive signals from Eximbank. Moreover, Hanoi is the political, economic and social center, especially the State Bank of Vietnam has its headquarters here. This brings convenience for the bank to exchange and work with the management agency.
Strengthening a solid financial foundation
Along with moving headquarters and expanding markets, Eximbank has carried out comprehensive reforms from top management to governance structure. The strong participation and strategic direction from major shareholders in recent times have become key factors helping the bank's business results improve significantly.
In the first 9 months of 2024, Eximbank achieved impressive business results. Total assets increased by 11% compared to the beginning of the year. Capital mobilization increased by 9.1% from the beginning of the year and 12.2% compared to the same period, while outstanding loans increased by 15.1% and achieved a growth rate of 18.9% compared to the previous year.
Eximbank's Q3/2024 report shows that pre-tax profit reached VND904 billion, up 11% compared to Q2 and nearly doubled (over VND597 billion) compared to the same period. Notably, the capital adequacy ratio (CAR) is always at 12-14%, exceeding the State Bank's prescribed threshold of 8%. S&P Global Ratings also maintained the B+ credit rating with a "Stable" outlook, affirming the prestige and development potential of this bank.
On November 27, Eximbank successfully raised VND1,400 billion from international financial institutions through the issuance of Tier 1 bonds with a term of 5 years. This transaction helps Eximbank reduce short-term capital pressure, optimize capital structure and improve financial capacity, meeting safety standards in the banking industry.
Previously, on November 25, Eximbank was approved by the State Bank to increase its charter capital to VND18,688 billion through the issuance of shares to pay dividends from accumulated undistributed profits until 2023. This plan was approved by the 2024 Annual General Meeting of Shareholders.
In addition, the Asian Development Bank (ADB) also increased the trade finance limit for Eximbank from 75 million USD to 115 million USD thanks to transparent business operations and effective risk management. This event helps Eximbank increase support for businesses, especially small and medium enterprises (SMEs).
“Increasing charter capital is a prerequisite for increasing the total assets of the bank (increasing mobilization and lending). On the other hand, increasing charter capital also increases the bank's risk tolerance (increasing the minimum capital adequacy ratio CAR) according to the regulations of the State Bank,” said Dr. Le Xuan Nghia.
Eximbank is currently stepping up its efforts to realize its goal of becoming “the leading commercial bank in Vietnam, led by professionalism and integrity”. This is not only the strategic vision announced by the bank, but also a great expectation from customers and investors.
To achieve the above goal, according to experts, Eximbank needs to continue focusing on restructuring governance, enhancing competitiveness and improving service quality, thereby building a solid and stable foundation to soon return to its position as one of the leading joint stock commercial banks in Vietnam.
“As long as the Board of Directors has a high level of consensus on strategic vision and long-term, sustainable goals, Eximbank will develop dramatically because this bank has certain advantages, especially in the field of import and export,” Associate Professor Dr. Nguyen Huu Huan, Faculty of Banking, Ho Chi Minh City University of Economics, stated his opinion.
Vinh Phu
Source: https://vietnamnet.vn/tu-tai-co-cau-va-nhung-co-hoi-moi-cho-eximbank-2365185.html
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