On the morning of April 27, 2017 at Melia Hanoi Hotel, Saigon – Hanoi Commercial Joint Stock Bank (SHB) organized its 25^th Annual General Meeting of Shareholders. Attending the Meeting were shareholders who held 697.293.250 shares, representing 62.3% of total shares which have rights to attend the meeting. Mr. Le Quang Huy – Deputy Chief of Banking Inspection and Supervision Department, Hanoi City also attended the meeting and gave a keynote speech.

2017 is the final year of 2012-2017 tenure of SHB’s Board of Directors and Supervisory Board. At this General Meeting, shareholders agreed upon SHB’s organizational structure of the Board of Directors and Supervisory Board in 2017-2022 tenure. Specifically, the Board of Directors comprises of 7 members, including: Do Quang Hien, Nguyen Van Le, Nguyen Duc Tien, Thai Quoc Minh, Tran Ngoc Linh, Pham Cong Doan and Do Quang Huy. The Supervisory Board comprises of 5 members, including: Pham Hoa Binh, Nguyen Huu Duc, Nguyen Thi Hoat, Le Thanh Cam and Pham Thi Bich Hong.

The shareholders also agreed to ratify many other important issues, which include:

1. Operational Report of the Board of Directors in 2012-2017 tenure with approval ratio of 91.18%.
2. Business Performance Report 2016 and Business Plan 2017 with approval ratio of 90.96%.
3. Report of Supervisory Board with approval ratio of 90.95%.
4. Proposal letter for profit sharing plan 2016 and provision of funds with approval ratio of 90.71%.
5. Proporal letter for charter capital increase 2017 with approval ratio of 89.52%.

SHB’s Chief Executive Officer Nguyen Van Le had reported the Bank’s business performance in 2016. With the orientation of sustainable, safe and effective development, SHB continued to achieve outstanding business results and maintain its firm position among five largest private commercial banks in Vietnam. Most of fundamental targets in fiscal year 2016 had been achieved or even exceeded in compared with 2015. Specifically, the Bank’s equity reached VND 16,370.90 billion, increasing by 31.91%; Charter capital reached VND 11,196.90 billion, increasing by 18.04%; Total assets reached VND 233,947.70 billion, increasing by 14.30%; Total mobilized funds reached VND 214,462.20 billion, increasing by 16%, in which customer deposits (economic organizations and individuals) were VND 181,152.80 billion, increasing by 15% over 2015; Total outstanding loan (economic organizations and individuals) were VND 162,376.20 billion, increasing VND 30,949 billion compared with the end of 2015, achieving 102.95% of 2016 plan; Profit before tax were VND 1,156.40 billion, increasing by 13.70%; Non-performing loan ratio were 1.87%, which fell under the target ratio of 3% setforth in the previous annual meeting. Moreover, SHB always complied with regulations on provisions of losses. As of December 31, 2016, SHB’s total provisions were VND 3,427.60 billion. SHB will pay dividend to its shareholders in shares at the ratio of 7.5%.

SHB’s Board of Directors and Supervisory Board of 2017-2022 tenure

2016 was a successful year of SHB with many important milestones such as:

• Inaugurated 2 fully-owned foreign banks in Laos and Cambodia, enhancing SHB’s presence in the Indochina;
• Officially merged Vinaconex-Viettel Financial Joint Stock Company (VVF) and established SHB Finance Company Limited (SHB FC), bringing it closer to realizing its strategy of becoming one of the leading retail banks in Vietnam;
• Highly appreciated by large financial institutions over the world for its safe and sustainable operation. Currently, SHB is involving as on-lending bank and serving bank in 20 ODA projects valued USD 1.50 billion funded by international organizaions and goverments, including WB, ADB, JICA, KfW, etc..
• Became the first and sole partner of F.C. Barcelona in the Indochina, opening great opportunities in retail banking. This differentiated branding strategy was awarded “Brand Initiative of the Year” 2016 by Asian Banker.

Shareholders attending the 25^th Annual General Meeting of Shareholders

Regarding the increase of charter capital in 2017 by VND 840 billion to approximately VND 12,036.30 billion from VND 11,196.90 billion, SHB’s Board of Directors said this increase was necessary and critical to enhance its governance capacity and competitiveness during its course of international economic integration. The increased capital would be used to purchase fixed assets for developing network, technology, expanding lending scale and to invest into SHB Finance Company Limited.

SHB’s 25^th General Meeting of Shareholders also adopted the business orientation and plan for 2017 in association with safe, effective and sustainable development objectives. Accordingly, SHB will develop its retail banking in the direction of modernization, enhancing competitiveness with the advantage of making difference based on modern technology and professional staff. With intensive experiences in finance – banking and great insight into market and customers, SHB will strive to better meet the demand in finance – banking services towards the national stability and economic development.

Financial objectives in 2017:

On behalf of the regulators, Mr. Le Quang Huy – Deputy Chief of Banking Inspection and Supervision Department, Hanoi City said: SHB was a pioneer in taking the restructuring policy of the Government and SBV. After the merger with Habubank four years ago, SHB has made endless efforts to address HBB’s problems. After 4 years, SHB has substantially fulfilled the merger’s goals. SHB’s business plan in 2017 is in conformity with  SBV’s monetary policy and system-wide common orientation. SBV believes and hopes the Board of Directors and Supervisory Board will promote their competences for SHB’s continuous development.

Chairman of the Board Do Quang Hien also had a Q&A session with the shareholders. Some topics of special interest included dividend, business plan in 2017 and operational plan of SHB Consumer Finance Co. Ltd. For the proposal of paying dividend by cash, the Chairman analyzed: SHB is one among the banks which were allowed to pay dividend in shares. It is reasonable when shareholders requested to pay dividend in cash. However, the payment of dividend in shares aimed at ensuring financial capabilities and promoting the Bank’s competitiveness, based on which to meet international standards on capital adequacy in accordance with Basel II and Basel III. Therefore, the Chairman really hoped for shareholders’ understanding.

Regarding the shareholders’ doubts about the Bank’s 2017 target profit of 50% increase over 2016, the Chairman said this target index is feasible and reasonable. The business plan of 2017 had been made based on market research, potential research and forecast of macro and micro policies with a deep insight into customers and competitors, etc. SHB plans to increase its profit from value-added services, which creates 20-25% of profit in a short-term and 30-35% in a long-term to meet international standards. In addition to financial services, SHB will also focus on non-financial services, including the cooperation with insurance firms. A large foreign life insurance company is currently negotiating with SHB with the exclusive fee of VND500 billion for the first year and another VND500 billion for the subsequent years. SHB is considering this proposal.

Moreover, the operation of SHB Consumer Finance Co. Ltd. will also greatly contribute to SHB’s profit growth in 2017. The company has been officially established following the Decision of the State Bank of Vietnam and completed the business registration. At present, the company is processing with the recruitment, including selection of Chief Executive Officer and key staff. It is expected to be put into operation in Quarter II/2017 and earn revenue from Quarter III/2017 with target profit of over VND100 billion and dramatic profit growth over the following year. The company clearly aims at retailing, which has far more advantages than a commercial bank. An outstanding advantage of SHB is its customer segment of groups and large corporations, which offers a great opportunity in retail – wholesale growth when cooperating with SHB Consumer Finance Co. Ltd.

The General Meeting successfully ended at 1pm. The new Board of Directors and Supervisory Board showed their commitment on striving towards SHB’s development and prosperity.