Saigon – Hanoi Bank (SHB) has announced its plan to issue bonds worth VND 5,000 billion in late 2024 and early 2025. This issuance aligns with SHB’s goals to provide secure and profitable investment opportunities for customers, strengthen its financial capacity, and increase medium- and long-term capital to support Vietnam’s economic growth. The first public bond issuance by SHB, valued at VND 2,500 billion, will be open for subscription from December 26, 2024, to February 28, 2025, in accordance with Resolution 21/2024/NQ-HĐQT.
Bank Bonds Lead the Market
Recent data from MBS Research highlights that corporate bond issuance is regaining momentum in the fourth quarter of 2024, spurred by recovering capital needs and expanding business activities following economic recovery. From January to October 2024, the banking sector emerged as the leading contributor, issuing VND 263,000 billion in bonds, which accounted for 72% of the market. This represents a 154% increase compared to the same period last year.
Banks are predicted to continue prioritizing bond issuance to enhance capital reserves and meet the rising credit demand. As of October 2024, credit growth across the banking system reached 10.08%, significantly higher than the 7.4% recorded in the same period in 2023. This growth is expected to accelerate further, supported by robust growth in production, exports, and services.
The accumulated value of corporate bonds by sectors (in trillion VND)
Source: HNX, FiinPro, MBS Research
Associate Professor Dinh Trong Thinh, a renowned banking and finance expert, affirmed the safety of bank-issued bonds, which are closely regulated by state authorities. These bonds serve as a reliable investment channel, offering guaranteed principal and interest payments comparable to savings deposits.
SHB’s Solid Financial Performance
By November 30, 2024, SHB’s total assets had grown to VND 708 trillion, with an outstanding credit balance of nearly VND 522 trillion, reflecting an 18% year-on-year increase. The bank has maintained compliance with safety and liquidity standards prescribed by the State Bank of Vietnam and has been implementing Basel III standards for liquidity risk management since 2023. SHB’s capital adequacy ratio (CAR) stands at 12%, demonstrating its financial stability.
With a charter capital of VND 36,629 billion, SHB is firmly positioned among the top five largest private commercial banks in Vietnam. The bank is committed to sustainable, safe, and effective growth by continuously improving governance practices aligned with international standards and modern banking models.
To further enhance its operations, SHB is rigorously managing credit quality, resolving overdue debts, and supporting customers in overcoming challenges. These efforts underscore SHB’s dedication to ensuring long-term stability within the banking sector.
Driving Innovation and Strategic Growth
SHB’s 2024–2028 transformation strategy focuses on fostering innovation, embracing technological advancements, and delivering modern, customer-centric solutions. These initiatives have significantly optimized operational efficiency, reducing the bank’s cost-to-income ratio (CIR) to 24.68%, the lowest in the industry.
SHB aspires to become the most efficient bank, the most popular digital bank, the premier retail bank and
the primary provider of financial services to strategic corporate customers with green supply chain, value chain and ecosystem.
A Commitment to Excellence
SHB’s issuance of VND 5,000 billion in bonds underscores its reputation for financial strength and reliability. Recognized for its robust risk management and governance, SHB continues to rank highly among domestic and international credit organizations. This bond issuance not only reflects SHB’s commitment to expanding secure investment channels but also supports its broader mission to contribute to Vietnam’s socio-economic development.
Guided by its ethos of “Originating from the Heart,” SHB remains dedicated to creating and spreading value for customers, communities, and the nation as it embraces a new era of growth and prosperity.