IT firm CMC to offload entire stake in BaoViet Bank

By Trang Tuan   September 23, 2019 | 05:53 pm PT
IT firm CMC to offload entire stake in BaoViet Bank
A BaoViet Bank branch in Hanoi. Photo courtesy of BaoVietBank.
The board of IT services provider CMC Corporation has approved the sale of its entire 10.3 percent holdings in BaoViet Bank.

CMC’s chairman has been authorized by the board to complete all procedures necessary for the sale to interested investors, a company representative who did not want to be named told VnExpress.

The CMC source did not comment on the reason for the divestment decision.

According to BaoViet Bank's semi-annual financial report, as of June 30, 2019, CMC owned a 10.3 percent stake the private bank, equivalent to over VND324 billion ($13.97 million) at par value.

Insurance giant Bao Viet Group, a co-founder of the bank, owns 49.5 percent while diary giant Vinamilk owns 14.03 percent. The remaining 26.15 percent is held by minority shareholders.

In the first six months this year, BaoViet Bank’s net profits had fallen 42 percent year-on-year to VND10.5 billion ($453,000), a result of rising operating costs and falling income from foreign exchange and financial services, according to the bank’s latest financial report.

Total bank assets at the end of June this year were valued at VND52.16 trillion ($2.25 billion), down more than VND3.7 trillion ($159.56 million) compared to the end of 2018.

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