SHB posts positive business results in 2023

Saturday, Feb 03, 2024 03:08

Transactions at SHB. — Photo courtesy of the bank

SHB's outstanding credit balance reached VNĐ455 trillion (US$18.6 billion), an increase of 17.1 per cent compared to the end of 2022.

SHB has released the 2023 consolidated financial report with stable growth in business results and safety indicators in the context of a market experiencing many difficulties.

A representative from SHB said last year, the bank's outstanding credit balance focused on production and business areas, priority areas according to the policies of the Government and the State Bank of Vietnam, and areas that create growth motivation for the economy such as rural agriculture, export, manufacturing and processing industry, construction, infrastructure and consumption.

As of December 31, 2023, SHB's total assets reached VNĐ630 trillion and capital mobilisation reached VNĐ497 trillion. Its equity capital according to Basel II reached VNĐ70.3 trillion and charter capital reached VNĐ36.1 trillion, continuing to maintain its position in the Top 4 largest private commercial banks in the system.

Net income from business activities reached VNĐ20.5 trillion, a 20 per cent year-on-year increase. Before-tax profit reached VNĐ9.2 trillion. SHB’s business performance was stable with good return on equity (ROE) and Net Interest Margin (NIM) indexes, especially the Cost to Income Ratio (CIR) index reached 23 per cent. SHB has continuously ranked first in the group of banks with the best cost control for many consecutive quarters.

In addition to efforts to reduce costs, SHB has implemented many preferential credit programmes with a scale of tens of trillions of Vietnamese đồng for new customers and interest rate reductions for existing customers. The total amount of reduced interest for customers amounted to more than VNĐ2.8 trillion. Other non-financial policies and support are also deployed promptly and continuously to help businesses overcome difficulties to maintain, stabilise and restore growth.

SHB's positive business results were achieved in parallel with the implementation of strict risk management policies. SHB's safety and risk management indicators are all better than the central bank's regulations, complying with Basel II and Basel III standards in liquidity risk management.

Last year also saw SHB's strong and comprehensive transformation towards a standard modern banking model in the future. In particular, digital transformation with clear strategies and development directions has achieved positive results, helping SHB achieve good growth in customers and transactions.

SHB has built many digital products, bringing new online features.

Over 90 per cent of key banking operations can be performed entirely on digital channels, exceeding the target according to the banking industry's digital transformation plan to 2025. At the same time, 90 per cent of transactions of corporate and individual customers are carried out entirely through Mobile banking and Internet banking digital channels.

Last year, SHB opened 5 more branches and 25 transaction offices, bringing the total number of domestic and international transaction branches to 569. SHB's large network has been promptly providing financial services for all customers, connecting economic sectors, creating jobs for many workers, and contributing to building innovative and developed provinces and cities, especially in mountainous and rural areas.

With a sustainable development strategy, increasing financial capacity and fundamental factors, thereby promoting business activities in key segments, in 2023, SHB completed the transfer of 50 per cent of shares at SHBFinance to Ayudhya Bank Limited (Krungsri) of Thailand. The bank has accompanied international financial institutions such as WB, IFC, ADB, KfW to implement billion-dollar projects, including signing a Credit Contract with IFC with a loan package worth $120 million.

2023 was a special year for SHB when the bank celebrated 30 years and was honoured with the Third Class Labour Medal by the Party and State, as well as prestigious domestic and international organisation awards such as: Best Trade Finance Bank in Việt Nam, the bank with the best ESG impact in Việt Nam, Outstanding Bank for the Community, Best Workplace in Asia. — VNS

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