Specifically, according to Decision No. 759/QD-NHNN of the State Bank of Vietnam and License for Establishment and Operation No. 21/GP-NHNN dated April 25, 2023, SHB Finance was officially converted from Saigon-Hanoi Commercial Joint Stock Bank One Member Limited Liability Finance Company to Saigon-Hanoi Commercial Joint Stock Bank Limited Liability Finance Company.
Saigon- Hanoi Commercial Joint Stock Bank Finance Limited Company has a charter capital of VND 1,000 billion, of which Saigon- Hanoi Commercial Joint Stock Bank (SHB) owns 50% and Ayudhya Public Company Limited (Krungsri) of Thailand owns 50% of the charter capital. Information about the company's headquarters and business type remains unchanged.
This is one of the final steps in the roadmap for transferring SHB's charter capital at SHB Finance to Krungsri - a strategic member of MUFG Group (Japan). Previously, the State Bank of Vietnam also issued a document approving the principle of converting the legal form and the list of personnel expected to be appointed as members of the Board of Members, members of the Supervisory Board for the 2022-2025 term and General Director of SHB Finance, including members from SHB and Krungsri. According to the agreement signed in early August 2021, SHB will transfer 50% of SHB Finance's charter capital to Krungsri and will continue to transfer the remaining 50% after 3 years. The first transfer ceremony of 50% of charter capital is expected to be held in May 2023.
Mr. Do Quang Vinh, Vice Chairman of the Board of Directors and Deputy General Director of SHB, shared that the capital transfer to Krungsri Bank will bring a significant surplus to SHB shareholders, creating more resources for the bank to continue to strengthen its financial capacity and fundamental factors, thereby promoting business activities in key segments, especially further promoting investment in the digital transformation process... The surplus from the transaction 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. "The capital transfer transaction and the above-mentioned transformation are even more meaningful in the context of SHB proudly celebrating 30 years of development with the country", Mr. Do Quang Vinh emphasized.
Ms. Olena Khlon, Permanent Deputy General Director of SHB Finance said: “The consumer finance market in Vietnam still has a lot of potential, along with good management and operation of the Government, Vietnam is currently an ideal destination for foreign investors. With the companionship of Krungsri - a strong financial institution in the region, SHB Finance will quickly achieve its goal of becoming one of the leading financial companies and a companion in building a better life for all customer segments”.
After nearly 5 years of operation, SHB Finance has been ranked in the Top 10 largest consumer finance companies in Vietnam with a business network spanning 51 provinces and cities and more than 7,000 employees. Rapid network expansion, continuous updating of technology and products to best serve customers' financial needs, and strict risk control procedures have helped SHB Finance receive its first credit rating from Moody's at B3 (stable outlook), become an official member of MasterCard and quickly become one of the top 3 most favorite employers.
About SHB
Established in 1993, SHB is currently in the Top 5 largest joint stock commercial banks in Vietnam, with total assets of more than VND 550,000 billion by the end of 2022. SHB's pre-tax profit in the first quarter of 2023 reached more than VND 3,500 billion, an increase of about 10.3% compared to the first quarter of 2022, completing about 35% of the profit target according to the plan recently approved by the General Meeting of Shareholders. SHB strives towards the goal of becoming the No. 1 bank in terms of efficiency by 2027, applying leading modern technologies and being the most favorite digital bank in Vietnam; with a vision to become a modern retail bank in the Top of the region by 2035.
About SHB Finance
Ranked in the Top 10 consumer finance companies in Vietnam, SHB Finance is assessed to have great potential and growth strengths. After 5 years of establishment and development, SHB Finance has made continuous efforts and achieved proud achievements such as becoming an official partner of MasterCard, being rated B3 by Moody's for the first time, top 3 most favorite recruitment brands... The M&A deal with Krungsri is also one of the largest deals in Vietnam in the consumer finance sector.
With the perspective of customer-centricity and smart finance, SHB Finance will continue to invest heavily in product and technology development to best serve the development of Vietnamese consumer finance.
About Krungsri
Krungsri is the 5th largest financial group in Thailand in terms of total assets, outstanding loans, and deposits. Mitsubishi UFJ Financial Group (MUFG) holds 76.88% of the capital. Krungsri provides a wide range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, small and medium enterprises, and large corporations through 629 branches and transaction offices in Thailand, meeting all needs of customers and society with sustainable growth.
PINK VELVET
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