Recently, the State Bank of Vietnam (SBV) has issued a document approving Saigon - Hanoi Bank ( SHB ) to issue shares to pay 2022 dividends to existing shareholders at a rate of 18% and issue shares under the employee stock option program (ESOP). After implementing the above two options, SHB 's charter capital will increase from VND 30,674 billion to VND 36,645 billion, maintaining its position in the Top 5 private commercial banks with the largest charter capital in the system.
On June 15, the State Bank of Vietnam issued Official Dispatch No. 4629/NHNN-TTGSNH approving SHB to increase its charter capital by a maximum of VND 5,971.6 billion according to the charter capital increase plan approved by the SHB General Meeting of Shareholders, including 2 forms: issuing shares to pay 2022 dividends to existing shareholders at a rate of 18% from after-tax profits after setting aside funds in 2022 and issuing shares under the employee stock option program (ESOP).
During its operation, SHB has always developed safely, publicly, and transparently; had sustainable profit growth, and increased charter capital steadily over the years. SHB's safety, liquidity, and risk management indicators are all better than the regulations of the State Bank and according to international standards.
SHB is also one of the banks that always ensures the interests of shareholders through regular dividend payments of 7-15%/year, especially 18% in 2022. Increasing charter capital is important to improve the financial capacity of the bank, increase SHB's competitiveness in the process of international economic integration, and especially meet the expected interests of shareholders.
Regarding the issuance of shares under the employee stock option program (ESOP), this is one of the policies that SHB pays special attention to, aiming to create a connection between the bank and employees, at the same time encouraging and attracting talent, improving work efficiency, and being the driving force for SHB to complete its goals and development strategies in the future.
In 2023, SHB targets pre-tax profit of over VND 10,600 billion, up 9.67%; total assets will grow by 10.09%; capital mobilization from market 1 will increase by 14.78%; outstanding credit balance will increase by 14%. Expected dividend rate is 15% and thereby expected charter capital will reach over VND 40,000 billion.
At the end of the first quarter of 2023, total assets reached VND 570,194 billion. Capital mobilization from market I reached VND 440,359 billion. Outstanding credit balance reached VND 422,175 billion. SHB's total operating income (TOI) reached VND 6,204 billion, up 32.2%. Net profit reached VND 4,994 billion, up 35% over the same period last year.
Thereby, SHB is in the group of banks with the highest net profit growth in the system in the first quarter of 2023. With the above results, despite actively setting aside risk provisions (nearly 3 times higher than the same period), SHB still achieved pre-tax profit of VND 3,620 billion.
With effective business, safe and sustainable development, SHB is increasingly affirming its reputation and position in the international market. According to the latest credit rating update announcement for SHB, international credit rating agency Moody's Investors Service (Moody's) rated SHB B1, in the context of the global market experiencing many fluctuations and challenges in 2022 and early 2023.
“SHB's B1 and B2 BCA ratings reflect the agency's expectation that SHB's credit profile will remain stable over the next 12 to 18 months. B2 BCA also considers the bank's capital and liquidity,” Moody's emphasized.
Recently, SHB has also completed the transfer of 50% of SHB Finance's charter capital to its partner Krungsri - Thailand in the roadmap for 100% capital divestment according to the previously signed deal. In the next three years, SHB will transfer the remaining 50% of shares to Krungsri according to the agreement.
The transaction will bring significant surplus to SHB shareholders, creating more resources for the Bank to continue to strengthen its financial capacity and fundamentals, thereby promoting business activities in key segments, especially further promoting investment in the digital transformation process...
The surplus from the deal also helps SHB increase its capital buffer, one of the bases to accelerate the implementation roadmap of Basel III and apply international financial reporting standards (IFRS) in 2023.
Along with that, many large financial institutions such as WB, ADB, IFC, KFW... have promoted cooperation with SHB through grants and investments worth hundreds of millions of USD. Most recently, SHB and IFC signed a cooperation agreement on a Senior Loan. The two sides signed the first loan in a total loan package of 120 million USD from IFC's direct capital with a term of 3 years.
The loan aims to support SHB in developing its small and medium-sized enterprise (SME) lending portfolio, including women-owned businesses and those involved in the supply chain.
The fact that IFC and many international financial institutions have accompanied SHB in the past time continues to affirm SHB's reputation and capacity in the international financial market, and at the same time affirms the Bank's correct strategy in developing safely and strongly, building a solid foundation and buffer, helping SHB grow stably and sustainably, fully and comprehensively meeting safety standards, and complying with international standards.
With increasingly strong financial capacity, SHB has been promoting investment in information technology as well as improving management and operational capacity, constantly expanding its network and scale, aiming to become the No. 1 bank in terms of efficiency, the most modern retail bank and the most favorite digital bank in Vietnam.
Nhat Le
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