MHB to be merged with BIDV

In late 2014 and at the beginning of 2015, there were rumours about banks to be merged with large ones such as Vietcombank, BIDV, and Vietinbank. Of which, BIDV was supposed to merge with Mekong Delta Housing Development Bank (MHB). However, the rumours were just rumours as no bank spoke up about this issue.

On the first days of April, the rumours have become true when MHB published documents for the upcoming annual general meeting (AGM). In the operational direction of the Board of directors in 2015, MHB specifies the bank that is going to cooperate with BIDV to complete the merge scheme under the direction of the State Bank of Vietnam (SBV).

According to the evaluation of the Board of directors, in 2014, MHB fulfilled business targets following the resolution of the AGM meeting. Accordingly, the pre-tax profit reached 162 billion dong, up 14 percent year-on-year.

At the end of 2014, MHB’s total assets reached 45.313 trillion dong, up 17.4 percent; the capital mobilisation touched over 37 trillion dong, up 14.4 percent from 2013. The paid deposits/funds mobilisation rate was 23.9 percent.

Also in the year, MHB boosted lending. The bank’s credit growth stood at 13.8 percent. The total loans arrived at more than 30.605 trillion dong (including the sale to the Vietnam Asset Management Company (VAMC) and the usage of 2014 reserves for risks).

At the end of 2014, the bad debt ratio in this bank was 2.72 percent which was relatively low.

Source: http://www.intellasia.net