SHB Finance changes legal form

The State Bank of Vietnam approved the conversion of legal form and granted a new establishment and operation license to SHB Finance on April 25.

Saigon - Hanoi Commercial Joint Stock Bank One Member Limited Liability Finance Company (SHB Finance) was converted into Saigon - Hanoi Commercial Joint Stock Bank Limited Liability Finance Company, with a charter capital of VND 1,000 billion.

Of which, Saigon - Hanoi Commercial Joint Stock Bank (SHB) owns 50% and Thailand's Ayudhya Public Company Limited (Krungsri) owns 50% of the charter capital. Information about the company's headquarters and business type remains unchanged.

This activity 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).

The new name of SHB Finance is Saigon - Hanoi Commercial Joint Stock Bank Finance Company Limited. Photo: *SHB*

Previously, the State Bank of Vietnam 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 three years. The first transfer ceremony of 50% of charter capital is expected to be held in May.

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 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.

The SHB Finance transfer agreement brings significant capital surplus to SHB as well as enhances the bank's financial capacity and position. Photo: *SHB*

According to Ms. Olena Khlon - Permanent Deputy General Director of SHB Finance, the consumer finance market in Vietnam still has a lot of potential. Along with the good management and operation of the Government, Vietnam is currently a destination for foreign investors.

"Krungsri's companionship will help SHB Finance quickly realize its goal of becoming one of the leading financial companies and a companion in building a better life for all customer segments," Ms. Olena Khlon added.

The M&A deal with Krungsri is one of the major deals in Vietnam in the consumer finance sector. Krungsri is a large 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 range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, small and medium-sized enterprises, and large corporations through 629 branches and transaction offices in Thailand.

After nearly 5 years of operation, SHB Finance has a business network spanning 51 provinces and cities with more than 7,000 employees. Expanding the network, updating technology and products to serve customers' financial needs, and strict risk control processes have helped SHB Finance receive its first credit rating from Moody's at B3 (stable outlook), become a member of MasterCard and be in the top 3 most favorite employers in 2019 by CareerBuilder Vietnam.

With the perspective of customer-centricity and smart finance, SHB Finance will continue to invest in product and technology development to serve the development of Vietnamese consumer finance.

An Nhien

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