Eximbank Reports 51% Drop in H1 Profit Amidst Leadership Shake-up

Eximbank of Vietnam has announced a significant 51% year-on-year drop in its pre-tax profit for the first half of the year, reaching VND730 billion (approximately $28.7 million). This figure represents 41% of its annual target. In response, the bank held an extraordinary shareholders' meeting to approve the dismissal of three board members and the election of five new ones. Among the new appointees are Nguyen Le Quoc Anh, former CEO of Techcombank, and Michael Richard Harte. Chairwoman Pham Thi Huyen Trang asserted that despite high-level leadership changes, Eximbank's development strategy will remain unchanged. "A sustainably developing bank must operate on a solid governance foundation, independent of any single individual," she stated. As of the end of the second quarter, total assets stood at VND266.5 trillion, a decrease of about VND6 trillion from the year-end. Loan outstanding exceeded VND200 trillion, with a non-performing loan ratio of 2.88%, remaining below the bank's 3% target. Compared to its peers, Eximbank's profit lags behind banks like VPBank and Techcombank, which reported profits nearing VND20 trillion. However, it surpassed BVBank's VND500 billion profit. Management assured shareholders about the bank's liquidity, noting that its Capital Adequacy Ratio (CAR) is 12.5%, well above the State Bank of Vietnam's minimum requirement of 8%. The 30-day payment capacity ratio also exceeded 80%, indicating a healthy financial standing. Gelex Group is currently Eximbank's largest shareholder, holding a 10% stake. Gelex, which appeared on the shareholder list in July 2024, positions itself as a long-term strategic investor and seeks regulatory approval to increase its ownership. Source: VnExpress