Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) plans to buy a securities company in a bid to expand the bank’s portfolio of products and services, as well as contribute to the local stock market’s growth.

HDBank, whose HDB shares are traded on the Ho Chi Minh City Stock Exchange, will seek its shareholders’ nod for the plan at the 2023 annual general meeting, slated for April 26.

The Vietnamese commercial bank said the local economy has witnessed steady growth, which would pave the way for further development of the stock market.

Besides, over six percent of Vietnam’s population own securities accounts, much lower than the average levels of 10-15 percent seen in other countries in the Southeast Asian region and around the world.

This shows that there is much room for the local stock market to advance further.

With this move, the bank is expected to expand the portfolio of products and diversify its revenue sources by offering new services such as issuance consulting, financial consulting, corporate restructuring, and asset management.

According to the bank’s criteria for acquiring stakes in a securities firm, the firm must be licensed to offer securities brokerage, trading, and investment consulting services; must have over VND1 trillion (US$42.7 million) in charter capital in its most recent audited financial report; must generate profit consecutively over the past three years; and needs to meet other requirements as per prevailing regulations of the bank and Vietnam.

Many other banks in the local market have their own securities businesses.

This is also a common trend adopted by major financial-banking institutions in developed markets to satisfy customers’ demand and optimize values for them and their shareholders.

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