EAB: A TradingBridge for Enterprises

After 14 years of operation, Eastern Asia Commercial Bank (EAB) takes pride in its achievements. This features the geometric progression growth in chartered capital, total assets, credit balances and mobilised capital or profit. The most prominent feat is the long-step development of a modern bank via global linking tools to support enterprise development.

 

The foreign exchange and international payment services of EAB have grown quite fast. The import-export payment turnover in 2005 reached US$1.104 billion, up 15 per cent and the foreign currency buying and selling turnover attained US$1.926 billion, up 8 per cent. In the first quarter of 2006, the international payment revenue hit US$291.4 million, equalling 26.4 per cent of the yearly target, while the foreign currency buying and selling revenue was US$261.2 million, equalling 16.5 per cent of this year’s target. Targeted clients of the bank are enterprises having import-export payment transactions with foreign banks. Besides, the bank also serves current clients like students, entrepreneurs on business trips abroad and other legitimate clients, which hold foreign currencies. EAB uses a full package service to attract potential foreign-exchange clients. The full package service comprises of swift and simple lending modes, preferential interest rates, low L/C opening rate and a high title-deed discount rate.

 

Actively seeking partners, cooperating technical and technology transfer, building the VNBC system and linking the world

 

With the construction of the core banking programme with Flexcube Group and the internet-supported network of 80 branches and transaction offices nationwide and the completion of ADSL internet connections for all security terminals, EAB is able to secure all safety transactions. EAB together with Habubank, Mekong Housing Bank and Sacombank is a foundation member of the Vietnam Bankcard (VNBC) system with 400 ATMs nationwide and 1,200 machines accepting POS payment. Last but not least, the VNBC system has connected with China UnionPay (CUP) Group via ATM and POS systems. CUP is a national card system in China, which accounts for 99 per cent of market shares in China, Hong Kong and Macao. Via GRG, EAB has carried out a CUP card accepting project, enabling CUP cardholders to withdraw cash and make payment at VNBC systems and vice versa. 

 

To increase quality and prestige, the bank carries out management reform (reshuffling its organisation, issuing regulations and instructing implementation) and personnel training for its all staff. In addition, EAB also attaches much importance to internal checking activities. Annually, all divisions and branches are entirely checked at least once. As for enterprises, especially small and medium ones, when they need capital, they should visit the bank directly to receive direct consultancy. Enterprises must have clear business plans and investment projects and send them to banks for consideration.

In the near future, EAB will sell a significant volume of shares to a foreign bank. “This is one of the world’s largest banks and has headquarters in Vietnam.” This information was announced by EAB General Director Tran Phuong Binh at the shareholder meeting.

 

EAB has set a target to mobilise VND800 billion (US$50 million) in 2006, an increase of VND300 billion (US$18.75 million) compared with the current level. The bank will focus its finances and human resources on developing a multifunctional card service to raise its card numbers to 800,000 with 450 new ATMs to be built in 2006.

As for issuance of stocks, EAB will reduce the denomination of VND2 million (US$12.5) per share to VND1 million. Each old shareholder of EAB will be allowed to buy additional 54 per cent of the existing shares at basis price. EAB intends to sell VND80 billion (US$5 million) of shares for strategic shareholders at a price trebling the denomination. Mr Tran Phuong Binhaffirmed “Strategic shareholders must be persons having the potential to provide professional and financial assistance to develop the bank.”