As the market price has not met expectations, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) said it will not sell any of the 6.09 million registered treasury shares.
Specifically, in a report sent to the Ho Chi Minh City Stock Exchange on the afternoon of February 20, Vietnam Export Import Commercial Joint Stock Bank (Eximbank, stock code: EIB) said it could not sell any shares from January 15 to February 7 because the market price did not meet expectations compared to the bank's target selling price.
During this period, EIB shares experienced many alternating sessions of increase and decrease, so the market price fluctuated in the range of 18,700-20,200 VND. However, this stock did not have any session closing higher than the average target price previously announced by the bank of 20,199 VND.
The plan to handle 6.09 million treasury shares was approved by Eximbank's general meeting of shareholders at the annual meeting in mid-April 2023. Eximbank had two options for handling treasury stocks: selling or using as bonus stocks. However, at that time, the Board of Directors said that the bank had just finished issuing shares to increase its charter capital and also had plans and options to increase its charter capital, so choosing to sell treasury stocks was appropriate.
These are all the shares that the bank bought back as treasury shares during the period of January 2-16, 2014 and has held until now. In the transaction information disclosure, the bank said the purpose of selling treasury shares is to supplement business capital. According to the plan, on each trading day, Eximbank will place a minimum sale order of 3% and a maximum of 10% of the transaction volume registered with the State Securities Commission.
EIB shares closed at VND18,650 on February 202, down 0.8% from the reference price and extending the slight decline for the third consecutive session. However, stock liquidity is improving. Market capitalization at current market price is VND32,467 billion.
In 2023, Eximbank reported a pre-tax profit of VND 2,720 billion, achieving 55% of the target set for the past year. According to Eximbank, due to the influence of factors such as proactively reducing lending interest rates to support customers in accordance with the State Bank's policy to stimulate demand in the context of economic difficulties and to retain customers in the situation where banks entice customers to borrow capital.
By the end of 2023, Eximbank's total assets increased by 8.8%; capital mobilization increased by 6.5%; outstanding credit increased by 7.6%; service activities such as foreign exchange trading, cards, and remittances all grew compared to 2022; liquidity and safety indicators in operations are always well controlled and comply with regulations of the State Bank.
This year, Eximbank targets pre-tax profit of VND5,180 billion. Total assets are expected to increase by 11% to VND223,500 billion, and capital mobilization to increase by 10.5% to VND175,000 billion.
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