SHB to transfer 100 percent of capital in SHB Finance to Thailand's Krungsri hinh anh 1Do Quang Vinh - Director of Digital Banking Division, Deputy Director of SHB, and Seiichiro Akita - Krungsri President and CEO signed an agreement to transfer 100 percent of capital at SHB Finance. (Photo courtesy of SHB)
Hanoi (VNA) - SHB has signed agreements to transfer charter capital at SHbank Finance Company Limited (SHB Finance) to Bank of Ayudhya in Thailand, commonly known as Krungsri – a strategic member of the Mitsubishi UFJ Financial Group (MUFG).

Accordingly, when the two parties fulfil certain conditions and meet the requirements as prescribed by law and obtain the approval of the State Bank of Vietnam as well as relevant regulatory agencies of Vietnam, Thailand, and Japan, SHB will transfer 50 percent of SHB Finance's charter capital to Krungsri and will continue to transfer the remainder after three years.

The transfer agreement of SHB Finance will bring a significant capital surplus to SHB's shareholders as well as improve the financial capacity and SHB’s reputation. The strategic cooperation between the two banks of the scale and position of Top 5 in Vietnam and Thailand will open up opportunities for regional development and reach out to the world.

Do Quang Hien, SHB’s Chairman of the Board of Directors, said “the consumer finance market in Vietnam has great potential and room for growth. After a period of selection and negotiation, we have found a suitable partner to contribute to bringing synergistic value in many aspects such as management experience; technology; improve financial capacity; network expansion, and new product development, international cooperation, enhancement of SHB’s reputation and brand name in the region and in the world.”

Krungsri President & CEO Seiichiro Akita said: "SHB’s local expertise and an extensive network in Viet Nam complemented by Krungsri’s strength in consumer finance will enhance SHB Finance’s business competitiveness. Together, we will develop and deliver quality consumer finance products to customers in Vietnam. This milestone also underscores our commitment to ASEAN Expansion Strategy following our current medium-term business plan covering 2021-23.”

Being in the top 10 consumer finance companies in Vietnam, SHB Finance is evaluated with a lot of growth potential and strength, with a charter capital of 1 trillion VND, 100 percent owned by SHB Bank - one of the licensed companies with the highest charter capital in the market.

Krungsri is the fifth largest financial group in Thailand in terms of assets, loans, and deposits in which Mitsubishi UFG Financial Group (MUFG) holds 76.88 percent of the capital. MUFG is Japan’s largest financial group and one of the world’s largest financial organisations.

MUFG also has a lot of experience in operating in the Vietnamese market, holding 20 percent of strategic shares in a large domestic bank in Vietnam and has contributed to the bank's impressive development in the Vietnamese market in recent years./.