SHB accelerates transformation, achieves highest ever first quarter profit 2024, projects 2024 profit increases by 22% and dividend yield 18% - Ngân hàng SHB
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SHB deploys biometric information collection in accordance with Decision 2345 of the State Bank SHB and the Banking Academy collaborate extensively to cultivate top-tier human resources SHB ranks in the top 200 of the Fortune SEA 500 list, a brand with regional and international outreach SHB won 03 important award categories at FinanceAsia Awards 2024 SHB win double Awards at digital CX Awards 2024 SHB accelerates transformation, achieves highest ever first quarter profit 2024, projects 2024 profit increases by 22% and dividend yield 18% SHB hailed as “Best bank for sustainable finance” for 2 years in a row SHB simultaneously reduced lending interest rates to only 5.79%/year

SHB accelerates transformation, achieves highest ever first quarter profit 2024, projects 2024 profit increases by 22% and dividend yield 18%

26-04-2024

SHB is confident to set  profit target in 2024 of 11,286 billion VND, up 22% from the previous year. The transformation strategy for 2024 – 2028 enables SHB to realize its goal of being the most efficient bank, affirm its position as a leading bank in Vietnam and aspire to grow in the region.

On April 25, Saigon – Hanoi Commercial Joint Stock Bank (SHB) successfully convened the 2024 Annual General Meeting of Shareholders (GMS) at Melia Hotel, Hanoi and proudly announced outstanding achievements in fiscal year 2023 – the Bank’s 30th anniversary of establishment.

After three decades of developing with the country and partaking in major national milestones, SHB tireless efforts in fulfilling its social responsibility toward  have demonstrated in various Bank polices such as taking part in credit institution restructuring project; financing key infrastructure projects, green energy and clean agriculture projects; and offering preferential loan package in line with the orientation of the Government and the State Bank of Vietnam (SBV).

During its course of development, SHB has followed a differentiated path and continually adjusted in a long-term goal.

SHB on its 30th year determined to achieve the business breakthrough

2023 was marked with various successes resulting from solid platform of 30-year history, sustainable, prudent and effective growth strategy, improved management capability in line with best practice.

As per the Board of Management report at the 2024 GMS, as of December 31, 2023, SHB’s total assets reached more than 630,500 billion VND, up 16% from the year earlier. Core capital equaled more than 70,268 billion VND, total customer deposit 497,417 billion VND. Total outstanding loan equivalent to 455,718 billion VND was channeled into priority business sectors and the driving force for economic growth.

Recently , SHB was maintained at B1 credit rating by the international credit rating agency Moody’s, showing that the Bank’s efficiency, prudence and sustainable growth continue to be strengthened amid the volatile market. .

Net income in 2023 rose 10% year-on-year to 21,328 billion VND. Profit before tax translated into 9,239 billion VND. CIR (Cost-to-Income ratio) at 23.7% remained the lowest in the banking industry. Rigorous risk management policies were adopted and capital adequacy ratios aligning with Basel III standards in liquidity risk management were always higher than the SBV threshold.

The Employee Stock Ownership Plan (ESOP) in 2023 and 18% yield stock dividend for 2022 increase SHB’s charter capital to VND 36,629 billion and among 4 leading private banks . In July 2023, SHB shares was officially selected into VN30 index basket – the list of 30 largest market capitalization.

In 2023, SHB completed 50% of SHBFinance capital transfer to Ayudhya Public Bank Limited (Krungsri) of Thailand. The remaining capital transfer shall be executed in the following 3 years and provide more funds to accelerate key business lines as well as supplement capital buffer.

Discussion of Capital Transfer plan at Saigon – Hanoi Laos Bank SML (SHB Laos) and Saigon – Hanoi Cambodia Bank SML (SHB Cambodia) are being underway . SHB has been working on the regulatory requirements with an interested investor who offers to buy the ownership of SHB Laos  .

SHB has been a trusted partner of many development financial institutions such as WB, IFC, ADB, KfW… In addition, a Memorandum of Understanding was signed with Busan Bank – a member of Korean BNK Finance  to establish comprehensive partnership, especially corporate customer growth, digital banking and investment banking.

The 2023 report of the Board of Directors (BOD) and Board of Management (BOM) also highlighted SHB’s timely contribution to the implementation of the Government and SBV policies in alleviating financial challenges of businesses and retail customers. Various preferential loan programs worth up to tens of trillions of VND for new customers and interest rate reductions for existing ones and  non-financial support have been put in place to enable business gradual recovery. SHB spent more than 87 billion VND on the corporate social responsibility (CSR) including relief to the impoverished, tribute to revolutionary contributors, education, health, culture, sports development programs

With contributions to the country’s economy and society, SHB was honored to receive the Third-Class Labor Medal at the 30th Anniversary in November 2023. SHB was awarded  with many prestigious awards such as: the best ESG impact in Vietnam, Outstanding CSR bank, The best social impact financial initiative 2023, the best SME bank, Top 50 innovative and effective enterprises in Vietnam…

Disruptive and comprehensive transformation

Taking advantage of  the momentum in 2023, SHB shall devote to disruptive and comprehensive transformation strategy built on 4 pillars: Reform institution, policies, regulations and processes; People-centricity; Customer-centricity; Advanced information technology and digital transformation and stay steadfast to the 6 core cultural values “Heart – Faith – Trust – Knowledge – Wisdom – Reach higher”.

The BOD is determined to achieve the transformation goals by establishing a Transformation Division and approved the Transformation Strategy for 2024-2028. Such ambitious goals include being the most efficient bank, the most efficient bank, the most popular digital bank, the best retail bank and the leading bank in financing the ecosystems, supply chains, value chains of both strategic state-owned and private enterprises  and green sectors

A large number of radical  improvements on customer segments, sales channels, sales models, service models and technology and and risk management are expected to take place in 2024. The Transformation Strategy is divided into three phases for Period 2024-2025: Build and Develop Capability; Period 2026-2027: Accelerate growth and Period 2028: Achieve great efficiency and business breakthrough.

The Bank will continue to embrace its Environmental & Social responsibility, facilitate green sector growth, development of green economy and circular economy in line with the Government’s Renewable Energy Development Strategy by 2050.

The projected indicators in 2024 are as follows: total assets  exceeding VND 701,000 billion; Charter capital increases by 12% to VND 40,658 billion; Non-performing loan below 3%; Total outstanding loan rises by 14% (adjusted according to the SBV’s approval on credit growth), Total customer deposit aligns with the approved credit growth. Pre-tax profit is expected to increase by 22% to VND 11,286 billion and  dividend yield for 2024 at 18% .

At the GMS, shareholders also approved the  dividend yield for 2023 at 16%, 5% and 11%  of which  are cash and stock dividend respectively.

Shareholders unanimously approved the resignation of  two members of the Board of Directors for 2022-2027 term. Mr. Do Duc Hai resigned as a BOD member to comply with the Law on Credit Institutions 2024 and focus on managing the Bank. Mr. Haroon Anwar Sheikh resigned as an independent member of the BOD due to personal reasons.

The BOD is determined to organize and deploy effective solutions to achieve strategic goals in 2024 with the principle of “Innovation – Responsibility – Efficiency”, creating solid foundation for  breakthrough in the following years.

In particular, on behalf of the BOM, CEO Ngo Thu Ha announced that profit before tax in quarter 1/2024 reached more than 4,017 billion VND and accounts for 35% of yearly objective.

At the end of the General Meeting, all proposals were approved by shareholders with a high rate, affirming consensus and trust with the Bank’s leadership .

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