Saigon – Hanoi Bank (SHB) has just released its consolidated financial statements for the second quarter of 2021, which recorded many important financial indicators with impressive growth over the same period and closely followed the plan set by General Meeting of Shareholders. Accumulatively in the first 6 months, SHB achieved VND 3,095 billion of pre-tax profit, up 86.5% over the same period, completing more than 50% of the whole year plan.
As of June 30, 2021, SHB’s total assets reached VND 458 trillion, up 11% compared to the beginning of the year and completing 99.5% of the plan set by the General Meeting of Shareholders. Own capital reached VND 40,425 billion. Charter capital reached VND 19,260 billion.
The bank’s management has boosted business activities since the beginning of the year and achieved positive results, consolidated credit balance as of June 30, 2021 reached VND 332 trillion, an increase of 8.46% compared to the previous year. At the end of 2020, consolidated capital mobilization reached VND 423 trillion, up 12% compared to 2020.
In the first 6 months of 2021, the Covid-19 epidemic continued to have complicated developments, significantly affecting the economy in general and SHB’s customers in particular. SHB has implemented many support programs for customers affected by the epidemic such as: business support programs in areas affected by the Covid-19 epidemic; policies to reduce interest rates by 0.5% – 2 percentage points for customers. With these direct interest rate reduction programs, SHB actively supported more than 100 thousand customers, corresponding to a turnover of nearly VND 160 trillion. These support measures are implemented simultaneously for both existing and new customers, individual customers and corporate customers who are heavily affected by Covid-19. It is expected that from now until the end of the year, SHB will continue to accompany the policy of the State Bank, supporting existing and new customers by reducing lending interest rates.
The application of preferential interest rate policies has a certain influence on the bank’s interest income. However, SHB’s interest income in the first 6 months of the year still reached more than VND 16.5 trillion, an increase of VND 1.3 trillion compared to the same period in 2020 thanks to the development of credit activities at the beginning of the year to promote average loan balance growth in 6 months, thereby creating a source of revenue for the bank.
Interest expense reached VND 9.6 trillion, down VND 1,179 billion thanks to positive improvements in capital mobilization structure and adjustment of interest rate policy in line with the market.
SHB succeeded in controlling the administrative expenses to net income (CIR) ratio at 28.5%, lower than that at the end of 2020, demonstrating the bank’s efforts in controlling costs and improving business efficiency.
In addition, SHB still actively made provision for risks to complete loan settlement plans and improve asset quality. Provision expense in the first 6 months of 2021 amounted to VND 2,258 billion.
Consolidated profit before tax in the first 6 months of the year reached VND3,095 billion, up 86.5% over the same period in 2020. With this result, after many consecutive quarters of improvement, the return on equity ratio SHB’s equity (ROE) reached 24.3%, equivalent to the leading performance index of the entire Vietnamese commercial banks system.