SHB plans to seek foreign strategic partners

Thursday, Apr 13, 2023 08:39

A customer at a branch of SHB. SHB expects the dividend payout ratio in 2023 to be 15 per cent. — Photo SHB

The Saigon-Hanoi Bank (SHB) has set a profit target of more than VND10 trillion (US$426,400) this year and plans to seek foreign strategic partners.

At the Annual General Meeting of Shareholders on Tuesday, Ngo Thu Ha, General Director of SHB, presented two business scenarios in 2023, corresponding to two plans on credit growth limits of 10 per cent and 14 per cent.

Specifically, with a credit growth limit of 10 per cent, equivalent to VND429.8 trillion, SHB aims to increase pre-tax profit by 6.15 per cent to VND10.3 trillion; total assets up by 8.93 per cent to VND600 trillion; mobilised capital up by 12.05 per cent to VND456.18 trillion.

With a credit growth limit of 14 per cent, equivalent to VND445.12 trillion, the target pre-tax profit will increase by 9.67 per cent to VND10.63 trillion; total assets will be up by 10.09 per cent to VND606.5 trillion, and mobilised capital is expected to increase by 14.78 per cent to VND467.29 trillion.

In both options, SHB expects the dividend payout ratio in 2023 to be 15 per cent.

Regarding the increase of charter capital, Do Quang Vinh, a member of the Board of Directors of SHB, presented to shareholders at the meeting a plan to issue more than 552 million shares to existing shareholders to pay dividends in 2022. The issuance rate is 18 per cent, with a par value of more than VND5.52 trillion.

Issuing time is within 45 days from the date the State Securities Commission notified the receipt of full issuance report documents, and is expected to be completed in 2023. SHB said that the charter capital would be raised by VND5.52 trillion and is expected to supplement working capital.

In addition, the bank will also issue 45.12 million shares under the employee stock ownership plans (ESOP) at the price of VND10,000 per share. The shares issued to employees will be restricted from being transferred for 18 months from the ending date of the issuance.

After completing the above two issuances, SHB's charter capital will increase from VND30.67 trillion to VND36.6 trillion.

Regarding the search for foreign strategic investors, Do Quang Hien, Chairman of the Board of Directors of SHB, said he was negotiating with many partners.

SHB plans to find long-term foreign strategic partners who will invest capital and participate in administrative support and technology sharing.

"It is expected that a foreign strategic partnership will be found for SHB and our partner this year or early next year," said SHB's Chairman.

In 2022, SHB's total assets reached nearly VND551 trillion, up 8.7 per cent compared to the end of 2021, ranking in the top 6 in total assets among the largest private joint stock commercial banks in Viet Nam.

Equity capital reached VND62.6 trillion, up 17.8 per cent compared to 2021. Total deposits reached more than VND407 trillion, up 7.6 per cent, and outstanding loans to customers reached more than VND385 trillion, up 10 per cent.

In 2022, SHB's pre-tax profit reached more than VND9.7 trillion, up 55 per cent over the same period last year. SHB also completed the payment of dividends for 2021 in shares at the rate of 15 per cent.

As of December 31, 2022, SHB's charter capital reached VND30.67 trillion. — VNS

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