Though banks are eager to sell stakes to foreign partners to expand their operations and improve their capital adequacy ratio (CAR), legal hurdles and differing investment strategies have hindered progress. A rocky road At an investor conference in early 2024, an executive from HDBank announced that the bank had received approval to establish a representative office in Seoul, South Korea, as part of its international expansion strategy. The bank has set aside 10% of its foreign ownership limit for suitable foreign partners. Hoang Thanh Tung, HDBank’s director of Investor Relations, said that the bank has attracted interest from multiple foreign partners in Korea, Europe, and the U.S. This suggests that the bank’s plan to sell shares to a strategic investor could be pursued when market conditions get better and they find the right partners. Similarly, Techcombank maintains a foreign ownership cap of 22%, reserving the rest for a strategic partner. Ho Hung Anh, chairman of Techcombank, noted that VPBank successfully sold shares to Sumitomo Mitsui Banking Corp. (SMBC), and Techcombank is looking for similar partnerships. “Techcombank is seeking a strategic partner, as issuing shares to strategic investors can fetch a higher price, benefiting all shareholders,” Anh said. Other banks, including […]