Hanoi (VNA) – The Vietnam Export Import Industrial Joint Inventory Financial institution (Eximbank) will terminate its partnership with Japanese Sumitomo Mitsui Banking Company (SMBC) as from February 7, in keeping with a decision of the financial institution’s board of administrators.
Earlier on January 5, SMBC proposed ending its strategic alliance with Eximbank.
In late 2007, SMBC invested 225 million USD in Eximbank to develop into the biggest shareholder of the financial institution with a 15 p.c stake. With Eximbank shares valued at 35,950 VND per unit on February 7, the withdrawal will assist SMBC gather practically 300 million USD.
Over the previous 14 years, SMBC funding in Eximbank was thought of ineffective, particularly since 2013 when the financial institution’s shareholders haven’t been paid dividends, to not point out the fluctuated costs of EIB shares.
Hearsay about SMBC’s withdrawal from Eximbank has been round for nearly one 12 months since SMBC paid practically 1.4 billion USD for 49 p.c of FE Credit score of VPBank.
In 2021, Eximbank earned pre-tax revenue of over 1.2 trillion VND, down 10 p.c 12 months on 12 months, turning into one of some banks struggling reducing revenue.
Eximbank can be the one financial institution that has but to organise its shareholders’ assembly for 2021./.