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Kien Long Commercial Joint Stock Bank has postponed its listing on the Ho Chi Minh City Stock Exchange (HoSE), citing unfavorable market conditions.
The bank approved a resolution to withdraw its application to list on Friday, also citing “shareholder interests” as a deciding factor.
The move comes five months after KienlongBank (KLB) submitted its initial application request to HoSE.
The bank reported that it would inform shareholders when it decides to attempt listing again under more favorable conditions in the future.
According to the lender, KLB General Director Tran Ngoc Minh will negotiate and terminate the bank’s stock listing consulting contract with Nhat Viet Securities Company.
Currently, KLB trades at UPCoM at VND12,200 (US$0.52) per share, less than a third of its peak set in March 2022.
KienlongBank had begun planning to list shares on the stock exchange towards the end of 2021.
KLB also once applied to change its name to KSBank, but the motion was not approved by the State Bank of Vietnam.
In the first nine months of 2022, KienlongBank’s consolidated profit dropped to VND513 billion, a decline of 40% year-on-year due to a sharp increase in bad debts and a rapid increase in operating expenses.
The bank has also had difficulty mobilizing deposits from customers after its deposit balance decreased by 18% to just VND42,200 billion over the first nine months of last year. Outstanding loans at the end of the third quarter of 2022 increased by 7% to VND41 trillion.
