(DTCK) Kien Long Commercial Bank Joint Stock Bank (Kienlongbank ticker: KLB) aims to become one of local leading modern and multi-disciplinary retail banks in Vietnam.
KLB registered to trade stock on UPCoM toward listing to improve the increase the transparency, facilitating shareholders’ stock trading as well as giving the bank a chance to access to long-term deposit channel via stock market.
Mr. Vo Quoc Thang - Chairman of Board of Administration said on the first day of KLB stock trading, June 29th, 2017.
Could you tell me the reason why Kienlongbank decides to trade stocks on UPCoM at this time?
To implement the Resolution of 2016 Annual General Meeting of Shareholders, Kienlongbank has made a plan to list stocks on UPCoM before June 30th, 2017. At present, every legal procedure has been successfully completed and the day June 29th, 2017 is the first stock trading day.
What is this event’s meaning to Kienlongbank?
Listing/registering to trade in the stock market is vital for corporate development in particular and benefits for Vietnam economy in general. Upon listing/registering for trading, an ocean of pressure in various aspects is suffered by the enterprise. Therefore, the enterprise must set higher business targets, greater motivation effort for success and sustainable development.
In fact, by comparing to the time when the enterprises are not listed or registered for trading, most of enterprises are subject to increase in market value, goodwill, etc. In the long term, such factors shall be convenient for Kienlongbank to increase its market share and sustainable development.
KLB stock's preference price on the first trading day is 10,000 VND/stock. Do you think this price attracts investors?
According to various related factors, Kienlongbank stock price shall be determined by the market. Price of 10,000 VND/stock is only the reference basis before official trading in stock market. Price change margin in the first trading day on UPCoM is 40% compared to reference price.
Kienlongbank stock price is varied by the demand and supply development as well as investors’ pricing in the market. Comparing to book value of 11,549 VND/share as released on March 31st, 2017, the reference price on first offering day was lower than book value by 1,549 VND/share.
With favorable developments of stock exchange in general and banking shares in particular, it is expected for Kienlongbank share price to be increased in the coming time.
After registering for trading on UPCoM, shall Kienlongbank plan to list stocks?
KLB share offering to be traded on UPCoM marks an important breakthrough in 22 anniversaries of Kienlongbank history and development. Thanks to that, we can improve the transparency, facilitating shareholders and investors’ stock trading and especially give chance of accessing long-term mobilization channels on the market, timely meeting Kienlongbank's future business plan.
We will select the proper time to submit it the General Meeting of Shareholder to approve stock listing on HOSE or HNX for the best benefits of the bank and its shareholders.
What are the bank's key business plan and target in 2017?
Regarding the 2017 target and plan, it is expected that total asset will be VND 36,500, increasing by 20%; total deposit will be VND 32,500 billion, increasing by 23%; credit outstanding balance will reach VND 24,700 billion, increasing 25% compared to those of 2016; bad debt ratio will be lower than 2.5%. Accordingly, consolidated before-tax profit plan will be VND 250 billion, increasing 65% compared to that of 2016; anticipated dividend will be 8%.
In order to fulfill the above plan, our key task in 2017 is to continue implementing Kienlongbank restructure in 2016 - 2020 in accordance with the method submitted to the State Bank of Vietnam.
Simultaneously, we concentrate on perfecting the credit policy and reforming facility procedure to be so convenient that borrowers can access to the bank’s capital and services, of which credit will be focused on production and business, priority factor of the economy.
Along with boosting core business activities, developing a wide range of customers and credit products, the bank will maximize e-banking utilities, increasing noncredit income.
In addition, we will increasingly modernize banking technology, gradually applying automation to activities; developing and completing the reporting, data storage and processing system to make it state-of-the-art, safe and confidential.
Could you tell me business performance of 3 first months of 2017?
At the end of first quarter of 2017, Kienlongbank's total assets reached VND 32,216 billion, increasing by 5.8%; total deposit reached VND 28,251 billion, increasing by 7.15%; credit outstanding balance was VND 21,750 billion , increasing by 10.04%; before-tax profit was VND 72,375 billion, bad debt ratio was 0.86% and possessed 117 nationwide active branches and offices. Comparing to the indicated plan, almost all important targets of the first quarter were successfully fulfilled by Kienlongbank.
Kienlongbank possesses an extensive operating network, could you tell me which location offer the best advantages to the bank?
Kienlongbank is the home of 117 transaction outlets, including 28 branches and 89 transaction offices, available at key markets, nationwide. Among that, we determine that the Southwestern area is the most advantageous place, remarkably contributing to the bank’s development.
Could you share anything about Kienlongbank orientation and strategy in the near future?
Kienlongbank’s mid and long-term strategic operation target and orientation is to become one of the local leading retail banks in Vietnam banking system with motto of “Secure and stable operation with appropriate profit, market share development by diversifying products and services toward e-banking service development”.
Kienlongbank customers are mostly individuals, households, SMEs and very small business with single and small loans and agriculture-related loans. Therefore, customer stability is high and risk can be distributed when the economy is subject to the regional or global fluctuations.
Our targets by 2020 include: total assets of VND 55,000 billion, capital mobilization of VND 50,000 billion, outstanding credit balance of VND 40,000 billion, chartered capital of VND 4,000 billion, more than 150 units and before-tax profit of 2018-2020 will be from VND 300 billion to over VND 500 billion.
During 22 years of history and development, Kienlongbank has made ceaseless effort and maintained its advantages, gradually affirming its position in Vietnam banking system, gaining achievements and obtaining great trust of national and international customers and partners.
Thanks to our current stability and extensively experienced managements, young, energetic, enthusiastic, trained and qualified employees, increasing number of customers, regularly updated Corebanking system and banking technology, continual development of new services and products as well as centers are equipped modernly and spaciously, etc., it is strongly believed that Kienlongbank will successfully fulfill its planned task to take Kienlongbank brand to the next level in the future.
Delivering his speech at KLB share offering, Mr. Pham Vu Hong, Deputy Secretary of the Provincial Party Committee cum Chairman of Kien Giang Provincial People’s Committee highly appreciated Kienlongbank's last operations, recognized and complimented the bank on its contribution and effort in explicit sharing and humanity along with the Party, local authority and people of Kien Giang Province.
In addition, he also proposed that the State Bank of Vietnam in Kien Giang Province continues taking care, facilitating and resolving the difficulties in conducting the regimes and policies to enable the local credit institutions to operate and develop successfully, safely and stably.
Mr. Nguyen Van Kiet, Director of the State Bank of Vietnam - Kien Giang Province Branch said:
The State Bank of Vietnam in Kien Giang Province highly appreciates effort, solidarity and achievements gained by Kienlongbank management and employees through periods.
Today Kienlongbank actively registered to trade on UPCoM, facilitating its shareholders to successfully trade share, offer chance to mark its change to prove the bank competence, growth and willingness to increase its business transparency as the reliable background in the future.
I believe that Kienlongbank will fulfill its planned task, obtain appropriate growth, stable operation and sustainable development with its own organizational and operation motto.
By Phan Hang
(http://tinnhanhchungkhoan.vn)