VIETNAM CHAMBER OF COMMERCE AND INDUSTRY
Liên Đoàn Thương Mại Và Công Nghiệp Việt Nam
Thu, Feb 25, 2021, 09:01:00
VPBank will either sell its stake in fully-owned subsidiary FE Credit next quarter or make an initial public offering by year end.
It expects to wrap up ongoing negotiations for the sale soon, brokerage SSI Securities Corporation said.
A sale of 49 percent stake could fetch the bank around VND21 trillion ($913 million) after tax, it said in a note.
If the talks fail, it would prepare for an IPO later this year, the note added.
FE Credit is the largest player in Vietnam’s consumer lending market with a 55 percent share in 2019, according to financial data provider FiinGroup.
As of the end of 2020, its outstanding loans were VND66 trillion. Its non-performing loans ratio was 6.6 percent.
It reported revenues of VND17.4 trillion and pre-tax profits of VND3.71 billion, a 17 percent decline from 2019.
VPBank has a profit growth target in 2021 of 20-30 percent for itself and 20-25 percent for FE Credit.
