The Ho Chi Minh City-based Sacombank has entered into a cooperation deal with the Saigon Jewelry Company (SJC) to boost both enterprises’ gold business.
Under the deal signed Tuesday the two sides will increase cooperation in gold trade bank accounts, a new trading device in Vietnam.
They will work together to grab gold price fluctuation opportunities on both the international and domestic markets for the highest profits.
SJC is set to open the first gold bonded warehouse next month, facilitating the two sides’ cooperation.
In a recent meeting, the listed-bank mulled cooperative opportunities in trading and manufacturing gold bullion with the Singapore-based United Overseas Bank (UOB).
The two parties discussed the possibility of UOB providing the local bank with software programs to trade gold through bank accounts.
Sacombank has projected pre-tax profits of VND845 billion ($52.6 million) this year, up 55% from last year.
Its outstanding loans at the end of last year were 73% higher than 2005 at VND14.54 trillion ($905 million). Deposits increased 75% to VND21.52 trillion ($1.3 billion).
Sacombank shares started trading on July 12, 2006 in the Ho Chi Minh City Securities Trading Center, making the lender the country's largest listed company at the time and boosting Vietnam's stock market value by 53%.
The bank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank, which altogether hold 26.3% of company.
Sources said the central bank might lift the cap on foreign investors’ holdings in the bank.
Earlier this year, the UOB acquired a 10% stake in Sacombank for US$30 million in cash. The Singaporean bank expected to up these holdings to 20%.
According to one UOB representative, its 20% ownership in the VND1.29 trillion-local bank would not be the final target.
Source: Thanh Nien
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