Approval granted for a significant increase in SHB's authorized capital to close to 1.8 billion dollars
The Saigon-Hanoi Commercial Joint Stock Bank (SHB) has received approval from the State Bank of Vietnam to increase its charter capital to a substantial VND45.9 trillion (approximately US$1.75 billion). This move is aimed at strengthening the bank's financial capacity for growth and innovation.
The significant capital increase will enable SHB to invest in advanced digital technologies, expand infrastructure, and improve operational efficiency. While specific projects regarding digital transformation were not explicitly mentioned, the funds are likely to be used to modernize the bank's systems, enhance online banking services, and support broader business development, possibly including branch expansion and customer base growth.
The capital increase also positions SHB to engage more actively in the competitive banking sector, improving its brand presence and ability to attract investment that would facilitate technological upgrades and market expansion.
In terms of financial performance, SHB's pre-tax profit reached VND4.4 trillion, fulfilling 30% of the annual target. As of the end of June, the bank's total assets stood at VND790.7 trillion, marking a 6% increase compared to the end of 2024. SHB aims to surpass VNĐ832 trillion in total assets this year and reach VNĐ1 quadrillion by 2026.
SHB's business performance, as of June, shows a focus on sectors and industries with high growth potential. The bank's outstanding credit grew by 7.8% to VNĐ575.7 trillion, with a focus on production and business sectors, as well as high-growth potential industries.
The capital increase will help SHB maintain its position among the top five privately-owned joint stock commercial banks with the largest capital scale in the system. With a total dividend payout of 18% for 2024, the move also reflects SHB's strong commitment to shareholder returns. The bank completed its 5-per-cent cash dividend payout on June 20.
As part of its 2024-28 transformation strategy, SHB is implementing a plan to become a 'Bank of the Future', integrating AI, big data, and machine learning. This strategy aims to modernize the bank's infrastructure, enhance customer experience, and improve operational efficiency.
The bank will issue over 528.5 million shares to pay a 13% stock dividend to existing shareholders for 2024. Each shareholder will receive 13 new shares for every 100 shares held as a result of the stock dividend. However, the capital increase will not be repeated, as mentioned earlier.
In conclusion, the capital increase marks a significant step in SHB's journey towards digital transformation and growth, positioning the bank to compete effectively in the ever-evolving banking sector.
The capital increase at SHB, driven by AI-focused transformation, enables the bank to invest in digital technologies, modernize systems, and enhance online services, aiming to expand business and customer base. With increased financial capacity, SHB positions itself to engage more actively in the competitive banking sector, fostering brand presence and facilitating technological upgrades and market expansion.
