SHB on Tuesday officially announced it successfully completed the transfer of the first 50 per cent of charter capital at SHBank Finance Company Limited (SHB Finance) to its partner - Krungsri Bank of Thailand - a strategic member of MUFG Group (Japan).
They will complete the remaining 50 per cent in the next three years, subject to approval from the relevant regulators.
The completion of the acquisition follows the capital transfer agreement announced on August 25, 2021.
According to the Decision No 759/QD-NHNN by the SBV and the Establishment and Operation License No 21/GP-NHNN dated April 25, 2023, SHB Finance officially converted from Saigon- Hanoi Commercial Joint Stock Bank Finance Single-member Limited Company to Saigon-Hanoi Commercial Joint Stock Bank Finance Company Limited.
Do Quang Vinh, Vice chairman and Deputy General Director of SHB, said the divesture to Krungsri Bank would bring a significant capital surplus for SHB shareholders and foster the bank’s financial capacity and fundamental factors, thereby promoting business activities in key segments, especially enabling massive investment in digital transformation.
“This deal also helps SHB to strengthen its capital buffer – one of the bases to accelerate Basel III implementation and the application of international financial reporting standards (IFRS) in 2023,” Vinh added.
The direct involvement of Krungsri - a leading financial institution in the region with extensive experience - is expected to create a new and comprehensive impetus for SHB Finance in accelerating the implementation of mid and long-term plans according to international standards, as well as in the development strategy of a financial company with leading strengths in Viet Nam in terms of technology and digitalisation.
Olena Khlon – Standing Deputy CEO of SHB Finance said: “SHBFinance targets one million happy customers, marking its 5th anniversary and being in the Top 5 largest consumer finance companies in Viet Nam. With the partnership of Krungsri, a sound regional financial institution, will enable SHB Finance to quickly realise its goal of becoming one of the leading finance companies, and a companion for building a better life for all customer segments.”
The acquisition also marked another milestone in strengthening Krungsi’s position as a regional bank with a strong ASEAN network, paving the way towards the bank’s aspiration to become the preferred Thai Bank Connecting Customers’ needs across ASEAN.
Kenichi Yamato, Krungsri President and Chief Executive Officer, said: “We are delighted with this capital transfer completion. Krungsri extends a warm welcome to the new member of Krungsri Group - SHB Finance. Moreover, we would like to convey our appreciation to the relevant regulators and authorities for their approval and support. With the addition of SHB Finance in the bank’s portfolio, Krungsri firmly establishes its presence in 5 ASEAN countries, making great strides toward our commitment to connect customers’ needs across the region.”
“Viet Nam’s economy is expected to continue the high gearing, driven by an annual growth potential of around 6-7 per cent, together with blooming business opportunities due to rising consumption. Krungsri is well-recognised as a leader in consumer finance. Our expertise and experience will be vital levers for SHB Finance to deliver superior services to its customers with enhanced smart and accessible consumer finance solutions. Krungsri is confident that its synergy with SHB Finance will strengthen SHB Finance’s brand, performance, its position as a top player in the Viet Nam consumer finance market,” he added.
Krungsri, the fifth largest bank in Thailand in terms of assets, loans, and deposits, has overseas businesses in Lao PDR, the Philippines, Cambodia, and the latest one, Viet Nam. The bank also has a representative office in Myanmar.
Established in 1993, SHB is currently in the Top 5 largest joint stock commercial banks in Viet Nam. By the end of 2022, SHB has total assets of more than VND550 trillion (US$23.3 billion) and pre-tax profit of VND3.5 trillion in the first quarter of the year, posting 10.3 per cent year-on-year increase.
SHB’s goal is to become the leading joint stock commercial bank in terms of efficiency and technology by 2027, with a vision to 2030 to become the leading modern retail bank in the region.
After five years of operation, SHB Finance has covered the market in 51 provinces and cities; serving almost 500,000 borrowers. SHB Finance targets to be in the Top 4 consumer finance companies in Viet Nam by 2025. — VNS