SHB completes issuance of 400 million shares, increases charter capital to $1.3 billion

Friday, Dec 09, 2022 16:55

Transactions at SHB. This year marks a strong transformation for SHB with impressive business results. — Photo courtesy of the bank

SHB successfully issued more than 400 million shares to pay dividends in 2021 at the rate of 15 per cent, raising its chartered capital to VND30.6 trillion (US$1.3 billion), according to information from the State Securities Committee on Thursday.

This is an important foundation to help SHB increasingly improve its reputation with the domestic and foreign investment community as well as international credit rating agencies.

SHB is carrying out the prescribed procedures to register, deposit, list additionally issued shares and put them into official trading at the end of this month.

The charter capital increase is part of SHB's development plan and was approved at the General Meeting of Shareholders, aiming to improve financial capacity, expand the lending scale, and invest in information technology. It especially promotes banking digitisation, realising the goal of becoming the leading modern and multi-functional retail bank in Viet Nam.

Since its share listing on the stock exchange in 2009, SHB has always adhered to the principles of publicity, transparency, sustainable profit growth, and steadily increased charter capital. In addition, the bank always ensures the interests of shareholders by paying annual dividends of 7-15 per cent a year.

This year marks a strong transformation for SHB with impressive business results, affirming the position of the Top 5 largest commercial banks in Viet Nam, the Top 10 most prestigious joint stock commercial banks in Viet Nam, Top 50 best enterprises in Viet Nam.

In the first nine months of the year, SHB achieved positive business results. Its total assets reached more than VND528 trillion, while capital mobilisation from economic organisations and individuals reached nearly VND400 trillion. Its outstanding loans reached nearly VND380 trillion; before-tax profit of more than VND9 trillion, up 79 per cent over the same period, completing 78 per cent of the set plan. SHB is rated B1 by Moody's with a positive outlook.

Earlier, SHB and Thailand's Krungsri Bank, a strategic MUFG Group (Japan) member, signed agreements to transfer charter capital at SHB Finance. Currently, SHB is expected to complete procedures this month. Completing the agreement will bring about a significant capital surplus for SHB in 2022 and the next three years, contributing to improving its financial capacity and position.

SHB has focused on promoting investment and developing solutions on digital platforms. Its operation process has been greatly improved thanks to digital technology and work efficiency. Customer data management has improved markedly. In the first nine months of 2022, SHB successfully implemented nearly 30 features and solutions on the Ebanking platform.

Having achieved impressive business results and continuously highly appreciated by prestigious domestic and foreign organisations, SHB has increasingly raised its position in the financial - banking industry.

Recently, IFC, a World Bank Group organisation, and SHB implemented a credit and trade finance package expected to amount to nearly $300 million; $120 million is a direct loan, and $75 million is the initial trade financing line from IFC. The credit package is expected to support the growth of SHB's small-and-medium enterprises (SMEs) loan portfolio, including businesses participating in the supply chain of clean agricultural products and green projects. It is also a testament to the trust and appreciation of partners, customers and the community for a bank that always focuses on customers, creating sustainable values for the SHB brand, the company says.

Next year will mark an important transformation for SHB by celebrating 30 years of development, accompanying the country, and contributing to bringing good values to the community, customers, partners, shareholders and employees. In the upcoming journey, SHB is committed to constantly making efforts, continuously innovating, gradually affirming the national position, reaching the international level, and contributing to the country's comprehensive development. — VNS

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