Eximbank surprise inspection
The inspection is expected to end on March 30, 2015, focusing on the bank's poor performance.
Recently, the Banking Inspection and Supervision Department of Ho Chi Minh City conducted a surprise inspection to clarify ongoing issues at Vietnam Export Import Commercial Joint Stock Bank (Eximbank), the inspection is expected to last until March 30, 2015.
It is known that at the 2014 Annual General Meeting of Shareholders of Eximbank, the Chairman reassured investors when the 2013 profit target was completely bankrupt (828 billion VND, equivalent to 26% of the plan): "Profit in 2013 is low: the average profit from 2010 - 2013 of Eximbank is relatively good (about 2,500 billion VND/year). 2014 - 2015 is believed to be better".
However, after looking back after a year, the whole year this bank reported a profit (before tax) of 69 billion VND, which is only about 1/12 of the disappointing pre-tax profit of the previous year. In the fourth quarter of 2014 alone, Eximbank suffered a loss of nearly 680 billion VND, which made many shareholders angry.
In 2014 alone, Eximbank's doubtful debt increased by 79.6% (from 309 billion VND in 2013 to 555 billion VND), debt with the possibility of losing capital increased by 25.1% (from 1,074 billion VND to 1,344 billion VND), total bad debt at the end of 2014 reached 2,144 billion VND, equivalent to 2.46%.
According to Decision No. 37/QD-Cuc II of the HCM City Banking Inspection and Supervision Department, the surprise inspection of Eximbank is conducted according to the following contents: Inspection of credit granting activities, credit granting to shareholders and related persons; granting unsecured credit; debt classification, provisioning and use of provisions to handle credit risks; inspection of charter capital, shareholders, shares, stocks, share transfers, and share ownership ratio.
According to Monetary Security
