In 2024, SHB distributes dividends through both cash and shares, aiming to delight shareholders, while also boosting charter capital and meeting regulatory requirements for capital adequacy.
Recently, SHB announced the closure of the shareholder list on July 19 for the payment of 2023 cash dividends at a rate of 5%, scheduled for August 6. SHB shares are presently included in the VN30 group and are among the most liquid stocks in the market.
Along with SHB, several other banks also disbursed partial cash dividends this year, following years of consolidating resources and lowering lending interest rates to support individuals and businesses in line with the State Bank’s direction during the Covid-19 three-year period.
During the annual general meeting of shareholders, the profit distribution plan, particularly the dividend payout, consistently remains a critical concern for investors and shareholders. This year, the Bank’s decision to offer partial cash dividends partly fulfills investors’ expectations after a prolonged period of anticipation, amidst ongoing fluctuations in the stock markets. This move also reflects the Bank’s responsiveness to shareholder feedback and commitment to safeguarding their rights.
Continue to increase charter capital
Alongside cash dividends, the Bank continues to uphold stock dividends to bolster its charter capital, fortify its financial base, and fulfill capital adequacy requirements. Augmenting charter capital is essential for attaining growth objectives and serves as the foundation for enhancing competitiveness, diversifying financial service offerings, and extending capital access to a broader clientele.
In addition to closing the shareholder list on July 19 for cash dividend payments, SHB also indicated that it is finalizing documentation for submission to regulatory authorities and processing procedures to pay 2023 dividends in shares at an 11% rate in the third quarter. Upon completion, it is anticipated that the Bank will raise its charter capital to VND 40,658 billion as per the approved plan by the 2024 General Meeting of Shareholders.
Previously, the State Bank adjusted the Charter Capital stated in SHB’s Establishment and Operation License to more than VND 36,629 billion, subsequent to SHB’s completion of issuing more than 43,000 shares under the employee stock option plan (ESOP). In 2023, SHB successfully issued over 552 million shares to distribute dividends for 2022, marking the highest dividend rate of 18% in the Bank’s history.
With its current charter capital, SHB is positioned among the top four largest private commercial banks in the system. Since 2017, SHB has consistently augmented its charter capital by issuing stock dividends ranging from 9.9% to 18%, steadily enhancing its capital foundation. As a result, the Bank consistently meets and exceeds the State Bank’s regulations for capital adequacy ratios and risk management, while adhering to Basel II and Basel III standards for liquidity risk management. SHB remains steadfast in its commitment to sustainable, secure, and efficient growth, continuously enhancing its management capabilities in line with international standards and modern models.
According to the analysis report from VietinBank Securities Company, SHB’s total assets grew by 16% in 2023. This substantial increase underscores the Bank’s ongoing commitment, particularly during a challenging period faced by Vietnam’s market
Due to its robust financial foundation and esteemed international reputation, on June 18th, SHB secured the 137th spot in Fortune Magazine’s list of the 500 largest financial corporations and businesses in Southeast Asia (Fortune Southeast Asia 500 – Fortune SEA 500). Moreover, it ranked 17th among financial institutions and businesses in Vietnam.
Solid foundation for breakthrough
For 2024, SHB aims to achieve total assets surpassing VND 701,000 billion and charter capital reaching VND 40,658 billion. The growth in total outstanding credit balance is projected at 14%, aligned with approvals from the State Bank, while customer deposits are expected to mirror actual credit growth. The bank targets a 22% increase in pre-tax profit, reaching VND 11,286 billion, with dividends anticipated at a rate of 18% for the year.
According to the analysis report from VietinBank Securities, SHB’s 2024 business plan is assessed as optimistic and well-aligned with the current Vietnamese economic conditions, suggesting a high likelihood of achieving its set objectives. The estimated earnings per share (EPS) for SHB’s parent bank in 2024 are expected to show substantial improvement compared to 2023.
By the end of the first quarter, SHB reported a pre-tax profit exceeding VND 4,017 billion, marking 35% completion of the annual plan. This figure also represents the highest first-quarter profit in SHB’s history. Additionally, the bank’s cost-to-income ratio (CIR) has maintained its position as the lowest in the banking sector for several consecutive quarters.
The Bank is directing its resources towards executing a robust and holistic Transformation Strategy centered on four pillars: Institutional Reform, People-centricity, Customer-centricity, and Modernized information technology and digital transformation. It remains committed to upholding the six core cultural values: “Heart – Faith – Trustworthiness – Knowledge – Wisdom – Greater heights”.
SHB sets a strategic goal of becoming a leading bank in terms of efficiency, the most popular digital bank, the premier retail bank, and the primary provider of financial services to strategic corporate customers with green supply chain and ecosystem.