Moody’s Investors Service has upgraded the credit rating of Saigon – Hanoi Bank (SHB) from stable to positive.

Accordingly, based on the fundamental factors that SHB has successfully built and implemented in 2021, assessing the business plan in 2022 and strategic direction of SHB in the next 3-5 years, Moody’s Investors Service Credit Rating Agency has decided to raise the credit rating of SHB from stable to positive.

Specifically, Moody’s upgraded SHB’s long-term deposit and issuer rating from B2 to B1, upgraded SHB’s Baseline Credit Assessment (BCA) from B3 to B2, and changed SHB’s rating outlook from stable to positive.

Moody’s upgrade of SHB’s rating reflects a marked improvement in the Bank’s asset quality, as in 2021 SHB has recovered its loans and paid off all VAMC and Vinashin bonds ahead of schedule, representing the rating agency’s expectation on further improvement of SHB’s credit profile, thanks to the improvement of the Bank’s capital.

Moody’s also recognized and highly appreciated the financial capacity of SHB, when the Bank’s charter capital was continuously increased, especially in 2021, charter capital of the Bank was raised to VND 26,674 billion. The Bank’s profit also increased remarkably due to lower operating and credit costs.

In 2021, despite facing many difficulties due to the COVID-19 pandemic, SHB still made great efforts to do business and achieved huge success.

By the end of 2021, SHB’s total assets reached VND 506.6 trillion, an increase of 23% compared to the end of 2020. Equity capital according to Basel II standards reached VND 53,114 billion. Capital mobilization from market 1 reached VND 379 trillion, up 12%; outstanding loans reached VND 369 trillion, up 16% compared to 2020. SHB’s pre-tax profit reached VND 6,260 billion, up 91% over the same period, outperforming 102% of the plan.

SHB has completed the preparation of the foundations for advanced capital conversion (FIRB), meeting Basel III standards on liquidity risk, after completing all 3 Basel II pillars ahead of time; strictly control operating costs, bringing the ratio of operating expenses to total net income (CIR) down to 24.27%, being one among the top joint stock commercial banks that best control costs.

Also in 2021, SHB has switched the transaction of SHB’s shares from HNX to HOSE, bringing a new wind for the market and investors.

SHB’s capitalization as of December 31, 2021 has reached over VND 59,471 billion (US$ 2.7 billion), 8.2 times higher than 5 years ago, ranking 9th among private commercial banks and in the Top 30 large-cap enterprises on HOSE, becoming one among the top banks that effectively attract foreign investment cash flow.

In particular, SHB’s share has always had abundant liquidity, highly transparent and is in the group of shares with remarkable investment value in the market.

Last year, the divestment of 100% of SHB Finance’s capital to Krungsri Bank – Thailand was the second highest value M&A deal among Consumer Finance deals in the market, bringing a significant capital surplus for SHB shareholders, improving the financial capacity and position of the Bank.

Modernizing technology, implementing digital transformation and digitizing operations have become remarkable highlights of SHB in 2021, in addition to the business successes mentioned above.

The Bank continues to improve the outstanding customer experience, accelerate the digitization of services to contribute to the strong growth of demand deposits (CASA).

Up to now, SHB has successfully implemented many digital products in turn, especially puting Smart Robot – a product of AI into service provision and continuing to expand the number of transaction points using Robot to support customers, deploying digital transaction space throughout the system, towards the goal of becoming the most popular digital bank.

Following the successful foundations of 2021, in 2022 SHB aims to increase total assets by over 12%, charter capital to grow by 37% compared to 2021; profit before tax is expected to be at least VND 11,686 billion, up 87%; Expected dividend in 2022 from 18%. For the two most important financial indicators: mobilized capital and total credit balance, SHB expects to increase by 9.8% and 14.4%, respectively, to reach VND 504,539 billion and VND 421,715 billion by the end of this year. NPL to be controlled below 1.3%.