An Binh Bank Sets Ambitious Target This Year

Ho Chi Minh City-based An Binh Joint Stock Commercial Bank (ABB) at the shareholder meeting on February 17 worked out ambitious plans for this year including tripling the registered capital and quadrupling profits.

 

Accordingly, ABB targets to raise its registered capital to a maximum VND500 billion (US$31.6 million), three times higher than the current amount. With a larger capital, the bank eyes to open more than eight branches and transaction offices in provinces around Vietnam.

 

A securities trading arm will be established under the affiliated form or joint venture, according to the shareholder meeting.

 

ABB, with large shareholders such as the Electricity of Vietnam Corporation (EVN) and the Vietnam Dairy Corporation (Vinamilk), decided to develop the bank into an investment bank as the initial target when it was set up. The board of managers has plans to raise profit to VND36 billion (US$2.28 million) this year, much higher than the VND8.3 billion (US$525,300) yelled in 2005 and pay dividends of 7 per cent. However, many shareholders said that the targets were lower than the banks potential.

 

EVN, which has estimated investment capital of more than VND100 trillion, is a big advantage for ABB as it is holding 45 per cent stake in the bank.