On the morning of April 19, Asia Commercial Joint Stock Bank (ACB) will hold its annual General Meeting of Shareholders (AGM) and elect the Board of Directors for the 2018-2021 term. According to ACB’s announcement about introducing 11 members, of which 10 candidates are introduced by the Board of Directors, only Mr. Nguyen Duy Hung is represented by a group of shareholders with over 10% of shares.
< strong>Election Kien’s shock
List of candidates by the Board of Directors ACB nominated to be submitted to the congress including 10 members including 6 old faces are members of the Board of Directors for the old term 2013-2017: Mr. Tran Hung Huy Mr. Nguyen Thanh Long Ms. Dinh Thi Hoa Mr. Dominic Timothy Charles Scriven Ms. Dang Thu Thuy Mr. Dam Van Tuan.
Mr. Tran Mong Hung and Mr. Tran Trong Kien is no longer on the list of nominated members of the Board of Directors this time. Instead, two members of ACB’s Executive Board, Mr. Do Minh Toan (General Director) and Nguyen Van Hoa (Deputy General Director), are the candidates. New candidate to the Board of Directors.
Notable is the 11th candidate nominated by the shareholder group to be elected member of the Board of Directors of ACB is Mr. Nguyen Duy Hung.
Mr. Nguyen Duy Hung used to hold the position of Vice Chairman of the Board of Directors and General Director of Vietnam Commercial Bank (VietBank) where Bau Kien’s family lives. currently holds nearly 16% of charter capital.
With the introduction of Mr. Nguyen Duy Hung as a member of the Board of Directors of ACB and the withdrawal of Mr. Tran Mong Hung, investors speculate that this is a return to the Board of Directors of ACB. left by Bau Kien and his wife.
Up to now, Mr. Tran Mong Hung’s family owns over 8% and Mr. Nguyen Duc Kien’s family owns over 10%. In addition, Mr. Kien’s family and Mr. Hung’s family co-own over 5% of ACB shares through the Group’s group of companies finance Asia (AFG). Thus, the group related to Bau Kien is the group with the largest ownership in ACB.
Last time, because Bau Kien was serving a sentence, one seat on the Board of Directors was vacant, so Mr. Tran Mong Hung’s family had 2 seats. in which his son Tran Huy Hung is currently holding the position of Chairman of the Board of Directors. Now Bau Kien wants to return to ACB, so Mr. Tran Mong Hung is forced to withdraw?
In 1993, Asia Commercial Joint Stock Bank (ACB) was established by two large shareholder groups, Mr. Tran Mong’s family. Hung and Mr. Nguyen Duc Kien’s family and a number of other shareholders. Over the past 25 years, ACB has been one of the top 3 joint stock banks with profits of trillions of billions and August 21, 2012 was a memorable day marking the decline of ACB when Mr. Nguyen Duc Kien (aka Bau Kien) was arrested. arrested and detained for “illegal business” behavior.
ACB was one of the strongest joint stock commercial banks in Vietnam at that time with total assets recorded on June 30, 2012 is approximately 256 trillion VND. After the incident on September 30, 2012, this number was recorded as about 214 trillion VND remaining and one year later, on June 30, 2013, ACB’s total remaining assets were about 169 trillion VND. In particular, profits dropped sharply from more than 4,000 billion VND in 2011 to 963 billion VND in 2012. Bad debt soared to 2,525 billion VND, especially group 5 debt, which increased sharply from nearly 300 billion VND to more than 1,150 billion VND.
In ACB’s 2012 financial report, a part related to Bau Kien began to appear: the outstanding debt related to a group of 6 companies amounted to more than 7,400 billion VND, a huge number at that time. hours.
Immediately after the incident about the former leaders, another strong blow was dealt to ACB when the State Bank required commercial banks to settle and stop mobilizing gold from customers. This is a contributing factor to the decline in ACB’s total assets and is the direct cause of ACB’s loss of over VND 1,700 billion in the fourth quarter of 2012. It is the above reasons that have caused the structure of ACB’s balance sheet to have huge changes.
Along with the change in the balance sheet structure of ACB’s management apparatus There are also big changes when almost all the old Board members related to Bau Kien are no longer there. A new Board of Directors has been formed with two main pillars: The family of Mr. Tran Mong Hung, founder of ACB, and strategic shareholder of ACB, Standard Chartered Bank.
What is the future for ACB?
Mr. Tran Mong Hung’s family once again returned to the bank with all employees to rebuild ACB to a new page. Up to now, after more than 5 years of events, ACB has quickly bounced back from being turned upside down. By the end of 2017, pre-tax profit reached 2,656 billion VND, double compared to last year’s 1,325 billion VND.
However, there are still hidden uncertainties. By the end of 2017, ACB’s receivables increased by more than 1,000 billion VND to 8,893 billion VND. Of which, 4,255 billion VND is receivable from customers. Along with that, credit risk provision costs skyrocketed from VND 1,217 billion in 2016 to VND 2,565 billion and operating costs also increased from VND 4,677 billion to VND 6,217 billion.
In the past 5 years, ACB has made efforts to overcome and handle debts related to Bau Kien through increasing provisioning. In 2014, the bank’s leaders said that the plan was to resolve old problems by 2016 so that ACB could return to its prosperous period as before with a profit of VND 3,000 billion, but by the end of 2017, the bank would There is still an outstanding debt of nearly 560 billion VND. However, the efforts of this entire bank are undeniable.
After more than 5 years of overcoming the storm, ACB has revived and people have seen a change in shareholder structure. Standard Chartered Bank’s divestment and the withdrawal of Mr. Tran Mong Hung.
As for Bau Kien, although he is serving a sentence, information about the transaction shares related to him are still implemented through through his wife, Mrs. Dang Ngoc Lan. At the beginning of the year, the group of related shareholders, Ms. Dang Ngoc Lan, registered to divest 46% of the total capital of 15 96% of shares in Vietbank. In particular, Mr. Bau Kien personally transferred more than 4 million shares to reduce his holding rate at this bank to 3.32%.
At ACB, Mr. Nguyen Duc Kien currently owns 31.57 million. shares and Mrs. Dang Ngoc Lan (Bau Kien’s wife) owns over 38,5 million shares. Calculating the closing price of the trading session on April 18, Bau Kien and his wife currently have more than 3,423 billion VND.
(According to Dan Viet)
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