The State Bank of Vietnam has approved the principle of transforming the legal form of Saigon – Hanoi Commercial Joint Stock Bank One Member Liability Limited Finance Company to Saigon – Hanoi Commercial Joint Stock Bank Liability Limited Finance Company (SHB Finance).

Specifically, on December 30, 2022, the State Bank of Vietnam issued a written approval for SHB Finance to convert from a one-member limited liability company to a two-member or above limited liability company. Other information regarding the Company’s headquarter, business type, charter capital remained unchanged.

Also on December 30, 2022, the State Bank of Vietnam approved in writing the list of personnel to be appointed as members of the Members’ Council, members of the Supervisory Board for the term 2022-2025 and CEO of SHB Finance, including members from SHB and Ayudhya Public Bank Limited (Krungsri).

The State Bank of Vietnam has issued a written approval for SHB Finance to convert its legal form and approved the list of personnel to be appointed as members of the Members’ Council, members of the Supervisory Board for the term 2022-2025, and CEO of SHB Finance

The approval of the State Bank of Vietnam is one of the final steps in the roadmap to transfer SHB’s charter capital at SHB Finance to Krungsri Bank of Thailand – a strategic member of MUFG Group – Japan. Afterwards, the two sides will expedite the remaining procedures to realize the agreement shortly.

Previously, on August 5, 2021, Saigon – Hanoi Bank (SHB) signed agreements to transfer charter capital at SHB Finance to Krungsri. After the two sides complete procedures to meet the requirements in accordance with the law and get approval of the State Bank of Vietnam, as well as relevant regulatory agencies of Vietnam, Thailand and Japan, SHB will transfer 50% of charter capital of SHB Finance to Krungsri and will continue to transfer the remaining 50% of charter capital after 3 years.

This is one of the final steps in the roadmap to transfer SHB’s charter capital at SHB Finance to Krungsri Bank of Thailand – a strategic member of MUFG Group – Japan.

The SHB Finance transfer agreement brought a significant capital surplus for SHB, as well as enhanced the Bank’s financial capacity and position.

According to a representative of SHB’s leadership, the Bank will make the most of the capital from the above agreement to invest in strengthening its foundations, promoting the development of individual and corporate customer segments, speeding up the digital transformation process, and improving risk prevention capacity.

The enhanced capital buffer from the above agreement will help the Bank continue to expand its business scale on the basis of maintaining prudential ratios, especially the capital adequacy ratio (CAR) as prescribed in Circular 41. The improvement of safety development indicators is the basis for SHB to meet Basel III, approaching international standards.

Management of SHB also emphasized that the cooperation with a partner having a strong financial background, in line with the development strategy of a modern universal retail bank shall contribute to bringing synergistic values in many aspects such as: management level; technology; financial capacity; customer and product development; enhance international investment cooperation; improve SHB’s reputation and image in the region and the world.

During 2022, SHB continued to affirm its position in the financial and banking market with key business performance indicators achieving good growth compared to 2021. Capital adequacy ratio, liquidity, risk management ratios were higher than as required by the State Bank and international standard practices.

The SHB Finance transfer agreement brought a significant capital surplus for SHB, as well as enhanced the Bank’s financial capacity and position.

SHB has completed several digitization solutions in products, sales channels, as well as operational processes, thereby improving the experience and attracting more customers. SHB has successfully implemented many programs and products directly related to the interests of customers, with high competitivenes in the market.

In the past year, SHB continued to ensure the interests of shareholders by complying with the principles of publicity and transparency, paying 15% dividend. On January 4, 2023, the State Bank issued Document No. 08/QD-NHNN approving the amendment of the Bank’s establishment and operation license with a new charter capital of VND 30,674 billion. On January 9, 2023, the shares issued to pay the above dividend were officially traded on the stock exchange.

SHB’s outstanding efforts in the past year have been recognized in a series of prestigious domestic and international awards and rankings such as Top 5 most effective banks in Vietnam, Top 5 largest commercial joint stock banks in Vietnam, Top 50 Best Enterprises in Vietnam, Best bank for CSR in Vietnam, etc. SHB continued to be the companion of many major international financial institutions such as IFC, ADB, WB… with the cooperation value up to hundreds of millions of USD, affirming the prestige and capacity of SHB in the international financial market.

The year 2023 marks an important development milestone of SHB as it celebrates its 30th anniversary, a long journey of establishment and development along with the country. SHB has been actively innovating business strategies, modernizing technology, comprehensively digitally transforming towards markets and customers, while continuing to improve governance capacity according to Basel II standard and preparing to complete Basel III, developing safely and sustainably, affirming the prestige and position of the Bank domestically and internationally.