SHB will earn a sizeable profit from the sale of SHBFC to foreign partners. — Photo courtesy of SHB

SHB is planning to sell its shares in SHB Finance Company (SHBFC) to strategic foreign partners, the bank announced on Friday.

SHB said SHBFC on Wednesday submitted a capital divestment proposal to the bank’s management board.

Some foreign partners have already expressed an interest in SHBFC.

SHB believes the capital contribution of foreign partners will help the bank take advantage of experience, management ability and modern and professional distribution channels, as well as advanced technologies. These could be breakthroughs for SHBFC and help to improve its share in the consumer loan market.

In addition, SHB will make a big profit from the divestment.

SHB owns 100 per cent of SHBFC, which has charter capital of VNĐ1 trillion (US$42.6 million).

By the end of 2019, SHBFC’s total assets reached nearly VNĐ3.3 trillion, which was 2.75 times higher than in 2018. Total outstanding loans were 3.8 times higher than the previous year at VNĐ2.7 trillion, while profit reached VNĐ107 billion. The company has a business network in 34 cities and provinces nationwide. In 2019, SHBFC also raised VNĐ1.8 trillion from 14 professional investment organisations, including fund management companies and credit institutions.

From the beginning of this year, the bank has been working with leading strategic consultants to establish three project boards including a bank development strategy, banking modernisation and management restructuring. These boards aim to map out a differentiation development strategy in the medium and long term as well as the bank’s modernisation strategy.

SHB targets to become one of the leading modern multi-functional retail banks in Việt Nam, while meeting international standards and reaching regional and world levels. — VNS