Today, Saigon – Hanoi Commercial Joint Stock Bank (SHB) and Bank of Ayudhya Public Company Limited (Krungsri) of Thailand (a strategic member of MUFG Group, Japan) announced that the transfer of 50% of charter capital at Saigon – Hanoi Commercial Joint Stock Bank Finance Company Limited (SHB Finance) had completed. The two corporations shall transfer the remaining 50% in the next three years in compliance with the divesture agreement.
More than a year after the divesture agreement was signed between SHB and Krungsri in August 2021, the final regulatory procedures have been completed. The leading Thai credit institution officially holds 50% of charter capital at SHB Finance.
According to the Decision and the new Establishment and Operation License issued by the State Bank of Vietnam dated April 25, 2023, SHB Finance successfully converted from Saigon- Hanoi Commercial Joint Stock Bank Finance Single-member Limited Company to Saigon- Hanoi Commercial Joint Stock Bank Finance Company Limited.
The two parties shall transfer the remaining 50% in the next three years
Mr. Do Quang Vinh – Vice Chairman of the Board of Directors cum Deputy CEO of SHB stated that this deal would provide a significant capital surplus to SHB shareholders and foster the Bank’s financial capacity and fundamental factors. This financial source would definitely promote business activities in key segments, especially enabling massive investment in digital transformation and promise numerous business growth opportunities in the region.
“The funding from the agreement also helps SHB to strengthen its capital buffer – one of the bases to accelerate Basel III implementation and the application of International Financial Reporting Standards (IFRS) in 2023” emphasized Mr. Do Quang Vinh.
The capital acquired from the deal will help SHB improve its financial capacity and create new business growth opportunities
The direct engagement of Krungsri – a leading financial institution in the region with extensive experience – is expected to speed up SHB Finance’s implementation of medium and long-term plans to fulfill international standards as well as realize the strategic objective of becoming the leading Vietnamese finance company in terms of technology and digitalisation.
Ms. Olena Khlon – Standing Deputy CEO of SHB Finance commented that “SHB Finance aims to serve 1 million happy customers to celebrate the 5th year of establishment and rank in the top 5 largest consumer finance companies in Vietnam. With the companionship of Krungsri Thailand, we believe that this goal will be realized speedily.”
SHB Finance set the objective to offer digital products to 1 million customers
Krungsri, through the investment in SHB Finance, will both expand its presence in Vietnam and strengthen business in the region. Including SHB Finance in its investment portfolio, Krungsri Bank has firmly consolidated its presence in the five ASEAN countries, making a great leap in delivering its commitment to connecting customers’ needs across the region.
Mr. Kenichi Yamato – the President and CEO of Krungsri Bank expressed his delight at the completion of this first capital transfer. Krungsri would like to thank the relevant regulatory bodies and authorities for their approval and support to make the deal a success.
“Vietnam’s economy is expected to maintain robust growth with the annual potential rise of around 6-7%, coupled with flourishing business opportunities driven by increased consumption. Krungsri is recognized as the leading performer in consumer finance segment. Our expertise and experience will be the key leverage for SHB Finance to deliver superior services and accessible and smart solutions to customers. We believe that the partnership between Krungsri and SHBFinance will strengthen the brand, operational efficiency and promote SHB Finance’s position as a leading player in the Vietnamese consumer finance market,” added Mr. Kenichi Yamato.