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GELEX has become Eximbank’s largest shareholder.
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Specifically, on August 7 and 8, 2024, GELEX purchased 50 million and 39 million EIB shares, respectively, through trading on the Ho Chi Minh City Stock Exchange. After completing the transaction, GELEX’s ownership increased from 85.5 million shares, or 4.9%, to 174.6 million shares, equivalent to a 10% stake in the bank. Thus, GELEX is now Eximbank’s largest shareholder.
Eximbank welcomes its new shareholder amid positive signals and promising future prospects.
S&P Global Ratings, a leading international credit rating agency, recently affirmed Eximbank’s long-term credit rating at “B+” with a “Stable” outlook, consistent with the rating assigned in July 2023.
Notably, the rating agency highlighted positive improvements in Eximbank’s operational efficiency and profitability metrics in 2023. Eximbank’s profit returned to normal levels, with a Return on Assets (ROA) of 1.1%, compared to 1.7% in 2022. This reflects the compression in the Net Interest Margin (NIM) following a series of policy rate cuts by the State Bank of Vietnam.
Despite this, Military Bank Securities’ statistics show that Eximbank is one of the few mid-sized joint-stock commercial banks to have experienced a positive improvement in NIM recently, along with HDBank, TPBank, Seabank, and Techcombank.
Additionally, S&P Global recognized Eximbank’s efforts in rebalancing its loan portfolio towards higher-yielding segments, focusing on consumer and SME lending, while also addressing legacy non-performing loans.
These business restructuring efforts have helped the bank maintain higher profitability. This forms the basis for maintaining Eximbank’s long-term credit rating at B+ with a “Stable” outlook, despite the challenging economic environment.
Regarding GELEX, for the first seven months of the year, the company recorded consolidated net revenue of VND 18,527 billion, equivalent to 57% of the annual plan, and consolidated pre-tax profit of VND 1,975 billion, surpassing the full-year plan by 3%.
The company attributed this performance to profits from the completion of the transfer of three out of four renewable energy projects to Sembcorp, as well as positive results from its electrical equipment manufacturing subsidiaries, which focused on product research and development, market expansion, enhanced governance, and aggressive marketing and sales strategies.
Currently, GELEX is also partnering with Singaporean giants such as Sembcorp and Frasers Property to develop premium-grade industrial parks and explore opportunities in the field of renewable energy.
In 2023, GELEX earns nearly 1,400 billion VND
In the face of macroeconomic pressures over the past year, GELEX Corporation has implemented flexible strategies to maintain stability and strive for sustainable growth.
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