SHB to raise capital again this year

Hanoi (VNA) – The Saigon – Hanoi Bank (SHB) plans to raise its charter capital by more than 1.2 trillion VND (52.8 million USD) to 13.24 trillion VND (582.56 million USD) in 2018.

The hike was mentioned by SHB Director General Nguyen Van Le as part of a plan approved at this year’s SHB shareholder meeting in Hanoi on April 23. The bank will increase the capital by issuing additional shares in the form of 10-percent stock dividends to shareholders.

SHB expects to have the total asset exceed 315.49 trillion VND (13.88 billion USD) by the end of this year, a rise of 10.3 percent from the beginning of this year. It also aims to reach a pre-tax profit of 2.05 trillion VND (90.2 million USD) and maintain the rate of non-performing loans at below 3 percent. The Return on Assets (ROA) and Return on Equity (ROE) will be kept at around 0.6-0.8 percent and 10.5-11.5 percent, respectively.

In addition, the bank intends to further expand its presence in the country by launching five more branches and 20 transaction offices.

At the meeting, the shareholders voted Thai Quoc Minh as new Member of the Board of Management and Trinh Thanh Hai as new Member of the Board of Independent Directors.

In early March, the bank successfully issued more than 83.92 million shares to pay dividends, raising the charter capital from 11.2 trillion VND (492.8 million USD) to over 12.03 trillion VND (529.3 million USD).

By the end of last year, SHB’s total assets amounted to over 286 trillion VND (12.58 billion USD), up 18.8 percent year-on-year, placing it among the top 5 private commercial banks in Vietnam. The lender posted a pre-tax profit of nearly 1.93 trillion VND (84.92 million USD) last year, up 66.5 percent against the previous year and 10 percent higher than the yearly plan.

SHB has been honoured as “Best Domestic Bank” of Vietnam in 2017 in The Asset Asian Awards (Triple A). The annual Triple A recognition of The Asset – a financial magazine for Asia’s decision makers - represents the industry's most prestigious awards for banking, finance, treasury and the capital markets.

The bank currently has 7,000 employees and 500 transaction points in Vietnam, Laos, Cambodia and Myanmar to serve some four million customers.-VNA