Outside the headquarters of Shinhan Finance in HCM City. — Photo vietstock.vn

Shinhan Vietnam Finance Company Limited (Shinhan Finance) posted poor performance in 2023, with a net loss of more than VNĐ642 billion (US$25.7 million), according to its regular financial update to the Hà Nội Stock Exchange (HNX) and bondholders.

This marks the first time in the past three years that the financial company has reported a loss in business results, the report said.

As of December 31, 2023, Shinhan Finance's equity capital reached over VNĐ2.4 trillion, down nearly 16 per cent from the beginning of the year.

Although its liabilities have decreased by over VNĐ100 billion since the beginning of the year, the sharp decline in the company's equity capital has led to an increase in the debt-to-equity ratio to 3.82 times at the end of 2023, from 2.25 times at the beginning of the year.

Last year, Shinhan Finance's bond debt remained relatively stable at around VNĐ1 trillion.

The poor business performance led to a dismal return on equity (ROE) of -17.26 per cent, compared to 11.33 per cent in 2022. The capital adequacy ratio (CAR), as mandated by the specialised legislation, fell from 26.16 per cent at the beginning of the year to 21.41 per cent by the end of 2023.

Previously, Shinhan Finance’s profit reached VNĐ234.3 billion in 2021 (ROE 9.44 per cent) and grew to VNĐ312.2 billion in 2022 (ROE 11.33 per cent).

Currently, they have a single bond series called BONDS2024, valued at VNĐ1 trillion, with a maturity date of October 10.

The bond series consists of 1,000 bonds with a par value of VNĐ1 billion each and an interest rate of 6.95 per cent per annum. The depository institution for this batch of bond is Vietcombank Securities Company. — VNS