Maintaining Stable Growth Momentum
At the General Meeting held on April 17, SeABank’s Management Board informed shareholders of the positive financial results for 2023 and the business plan targets for 2024.
In 2023, the global economy continued to face numerous challenges, including geopolitical tensions, war, high inflation, and a decline in global trade and consumption. Domestically, the economy gradually recovered but still encountered obstacles. Despite these headwinds, SeABank achieved notable results through its multifaceted efforts.
Specifically, pre-tax profit for 2023 reached VND 4,616 billion, fulfilling 100% of the plan. Total assets amounted to VND 266,122 billion. The non-performing loan ratio remained at 1.94%, and the cost-to-income ratio (CIR) was 38.3% due to cost optimization and savings. The consolidated capital adequacy ratio (CAR) reached 13.61% and consistently exceeded the minimum CAR requirement set by the State Bank of Vietnam (SBV).
In 2023, SeABank’s diversification of products, enhanced service quality, cross-selling of products, and increased adoption of technology resulted in over 32.3 million transactions conducted through digital platforms, a 157% increase year-on-year. Additionally, over 71% of new account openings were registered online via eKYC.
SeABank’s charter capital increased to VND 24,957 billion in 2023, providing the Bank with sufficient capital to strengthen its capital adequacy ratios, expand its operational scale, and invest in technology. The listing of SSB shares on HOSE’s VN30 index affirmed SeABank’s reputation, operational efficiency, and financial strength in the financial and banking market. As of December 31, 2023, SeABank was among the seven banks with the highest market capitalization on the stock exchange.
In 2023, Moody’s maintained SeABank’s Ba3 credit rating for its issuer and long-term domestic and foreign currency deposits. Moody’s affirmation of the rating, with a Stable outlook, reflects the organization’s expectations of the Bank’s high and improving capital adequacy.
In Vietnam, SeABank is one of the pioneering banks to implement and apply Basel III to enhance its governance capabilities, mitigate operational risks, and strengthen its resilience to market shocks. After more than a year of Basel III implementation, SeABank optimized its risk-weighted assets (RWAs) and capital through advanced methodologies that accurately measure risk and market sensitivity. As a result, the Bank can balance the risk and return of capital holdings, improve liquidity, enhance its capacity to manage credit risk, and simplify operational risk management.
Based on its achievements and an analysis of the economic outlook for 2024, SeABank’s Annual General Meeting of Shareholders approved a business plan for 2024 that aims to maintain stable growth compared to 2023. The plan includes:
Total assets of approximately VND 300,000 billion
Additional capital mobilization of approximately VND 30,000 billion
Pre-tax profit of VND 5,888 billion, a 28% growth compared to 2023
Return on average equity (ROE) after tax of 13.9%
Non-performing loan ratio controlled below 3%, as per regulations
Capital Increase and New Board Member to Drive Sustainable Development
A key agenda item at SeABank’s Annual General Meeting was the plan to increase the charter capital from VND 24,957 billion to VND 30,000 billion (an increase of VND 5,043 billion) through the following methods:
Issuance of 329 million SSB shares to pay dividends for 2023 to shareholders at a ratio of 13.1826% and issuance of 10.3 million shares to increase paid-up capital from retained earnings at a ratio of 0.4127%, raising the charter capital to VND 28,350 billion.
Issuance of 45 million shares under the Employee Stock Option Plan (ESOP) for 2024, to increase the charter capital by an additional VND 450 billion.
Public offering of up to 120 million shares through private placement and/or issuance of shares to swap debt at an expected offering price of VND 10,000 per share, resulting in an additional VND 1,200 billion in charter capital.
The continued capital increase is crucial for SeABank’s growth targets in the current period and will provide the foundation for the Bank to enhance its competitiveness, drive its development, and strengthen its financial capacity.
In line with the capital increase plan, SeABank continues to strengthen its governance structure to ensure the successful execution of its goals for the 2024-2028 period. Particular emphasis is placed on sustainable development (ESG), adhering to international standards. The General Meeting approved the resignation of Ms. Ngo Thi Nhai as a member of the Board of Directors (BOD) and elected Ms. Tran Thi Thanh Thuy as a new BOD member for the 2023-2028 term.
The members of SeABank’s BOD and Supervisory Board (SB) meet all the standards and requirements stipulated in the Law on Credit Institutions 2010 and its amendments, and are highly competent individuals with extensive experience in finance and banking. They possess strategic vision, teamwork, and a deep commitment to SeABank’s development.
The addition of senior management talent will enable SeABank to strengthen its governance and operational capabilities, bringing the Bank closer to its goal of becoming the most preferred retail bank based on its core strengths: driving digitalization in banking, achieving sustainable growth with robust risk management, enhancing credit quality while maintaining a non-performing loan ratio below 3%, and diversifying products and services to enhance customer experience.
