High return from share sale

The Asia Co妹妹ercial Joint Stock Bank (ACB) may earn between VNĐ 一. 三 trillion (US$ 五 七. 八 million) and VNĐ 一. 五 trillion from selling treasury shares, according to HCM City Securities Corp (HSC).— Photo ndh.vn

HÀ NỘI — The Asia Co妹妹ercial Joint Stock Bank (ACB) may earn between VNĐ 一. 三 trillion (US$ 五 七. 八 million) and VNĐ 一. 五 trillion from selling treasury shares, according to HCM City Securities Corp (HSC).

ACB is holding more than  四 一. 四 million treasury shares out of its  一. 一 二 billion listed on the Hà Nội Stock Exchange, equal to  四.0 三 per cent of the total shares.

The bank bought those treasury shares back from investors in January  二0 一 五, May  二0 一 四 and July  二0 一 三 for an average price level of VNĐ 一 六,0 八0 ( 七 一. 五 US cents) per share.

HSC said in a recent report there has been no news about of the bank selling its treasury, however, it could be a good way to increase its charter capital.

If ACB decides to sell at the current market price, it could generate VNĐ 一. 三 trillion to VNĐ 一. 五 trillion in profit that could be added into the bank’s share premium.

ACB shares closed Wednesday at VNĐ 三 八, 四00 per share, nearly  二. 四 times the average price the bank paid.

ACB has some VNĐ 三 trillion worth of guarantees related to various loans, including stocks and some real estate projects. The bank is forecast to sell entire or a part of those assets in the next few years, HSC said.

HSC also forecast that ACB would record VNĐ 六 trillion in pre-tax profit, a yearly increase of  一 二 七 per cent.

Total lending and raised deposit would rise  一 八 per cent each to VNĐ 二 三 四 trillion and VNĐ 二 八 四 trillion at the end of the year, HSC said, adding that the bank’s net interest margin (NIM) rate would increase to  三. 五 五 per cent from  三. 四 八 per cent in  二0 一 七.

ACB would be able to reduce its provision set aside to pay for anticipated future losses by  八 一 per cent as it would clear entire VAMC bonds and loans to eight companies involved in the prosecution of the bank’s former chairman Nguyễn Đức Kiên, HSC said. The bank’s non-performing ratio is also estimated at 0. 八 per cent this year. — VNS