CBA Increases Stake at VIB

Recently, Vietnam International Bank (VIB) and Commonwealth Bank of Australia (CBA) officially announced CBA’s increased stake as a strategic shareholder at VIB. CBA has invested an additional amount of VND1,150 billion in VIB in order to further strengthen the capital base and capital adequacy ratio (CAR), and expand business opportunities and operation scale for the bank. Accordingly, CBA’s stake was increased to 20 percent from 15 percent in VIB’s charter capital. VIB's shareholders’ equity is now more than VND 8,200 billion.

 

In the past, CBA has not only invested capital in VIB but also conducted a "capability transfer” program with the view to helping further improve the latter’s business, management, and risk management capabilities, and strengthen its competitiveness. Now two senior members from CBA’s Board of Management, Mr Garry Lynton Mackrell – Director of Bank West, Director of Hangzhou Bank, Director of ASB LTD Bank and Director of (Life) ASB LTD Group – a bank under Commonwealth Bank Group, and Mr Wayne Hoy – GM of International Financial Services Division of CBA Sydney, represent the bank at VIB’s Board of Directors. CBA also has a representative at VIB’s Supervisory Board and more than 20 other experts working at the bank in such key areas as retail banking, risk management, human resources, information technology, treasury and finance. The number of CBA experts to work at VIB will be 40 in 2012 and continue to gradually increase in following years. The exchange of people between VIB and CBA will also accelerate as VIB continues its quest to become a best practice financial services organisation in Vietnam.