KEB Hana Bank has become the second-largest shareholder in the Bank for Investment and Development of Vietnam (BIDV), the largest bank in Vietnam in terms of asset size. The former acquired 603.3 million new shares from the latter, which are equivalent to 15 percent of the bank, by investing 1,014.8 billion won.
They held a celebration event in Hanoi on Nov. 11. “We will share our risk management techniques and consumer banking expertise with the BIDV so that its corporate financing-led asset portfolio can be made better,” said KEB Hana Bank.
Established in 1957 as the Vietnam Construction Bank, the BIDV had a total asset of 66.3 trillion won and posted a net profit of 380.9 billion won at the end of last year. The South Korean bank focused on the BIDV’s non-bank portfolio in making the investment. The BIDV has non-bank subsidiaries such as securities, insurance, asset management and lease companies. The shareholding of the State Bank of Vietnam in the BIDV fell to 81 percent as a result of KEB Hana Bank’s investment.
The South Korean bank is expected to accelerate its business expansion in Vietnam based on the share acquisition. It currently has two branches in Hanoi and Ho Chi Minh City and the branches have concentrated on business with South Korean companies in Vietnam.