Saigon-Hanoi Bank (HoSE: SHB) has released its annual general meeting documents for 2024. The bank has identified this year as a pivotal year for transformation, strengthening internal resources, and maintaining sustainable and effective growth.
SHB sets a pre-tax profit target of VND 11,286 billion, an increase of 22%. Total assets are expected to reach VND 701,000 billion, and charter capital VND 40,658 billion, an increase of nearly 12%; while strictly controlling the non-performing loan ratio below 3%.
SHB’s targets affirm its strong progress and expansion to meet the increasing capital demands of the economy, enhance competitiveness in the process of international integration, and satisfy the interests and expectations of shareholders.
In 2023, the global and domestic economic situation faced difficulties due to geopolitical instability, declining demand, high inflation, and tight monetary policy. Despite these challenges, the bank reported positive results. Pre-tax profit reached VND 9,239 billion. As of December 31, 2023, total assets reached VND 630,501 billion, an increase of 16%; and charter capital VND 36,194 billion. Business efficiency remained stable, with a CIR ratio of 23.7% – notably, SHB is the bank with the best cost management in the market, thanks to its focus on risk management, cost reduction, and regular review of business mechanisms for flexible adaptation.
Credit rating agency Moody’s has maintained its B1 rating for SHB, demonstrating the bank’s safety and efficiency, affirming its inherent strength and providing a foundation for continued growth in the next phase.
“Accompanying Bank” with Shareholders, Customers, and the Nation
One of the important contents of the general meeting, SHB proposed to shareholders a 2023 dividend payment of 16%, of which 5% will be in cash and 11% in shares. The bank has maintained a policy of regular dividend payments to shareholders over many years, even during challenging economic times. This has created trust and loyalty from shareholders in the bank.
This year, the plan to pay dividends partly in cash demonstrates the bank’s efforts to share support with shareholders while the economy is in a recovery phase.
In addition, continuing to pay a portion of dividends in shares helps the bank further strengthen its charter capital foundation. Over the past 10 years, SHB’s charter capital has increased nearly fourfold, reaching VND 36,629 billion as of early April.
Recently, SHB Vice Chairman Mr. Do Quang Vinh registered to purchase over 100.2 million SHB shares during the period from April 19 to May 17, expected to increase ownership to 101.1 million shares, equivalent to 2.79% of SHB’s capital. If the transaction is successful, Mr. Vinh will become the largest shareholder in the bank’s board of directors. This serves as an affirmation from the young leader about the journey ahead with the bank, together with other shareholders, and his belief in SHB’s future.
Following this news, SHB shares rose to the ceiling price in the trading session on April 15. However, the overall market decline caused SHB shares to narrow their gains. At the end of the session, SHB shares were the only ones to maintain a positive trend in the banking industry and the VN30 group, and were among the top 10 strongest gainers in the market. Foreign investors also net bought over 2.7 million SHB shares in the session. The share price movement reflects investor confidence in the bank’s leadership and SHB’s ambitious plans.
Entering its 31st year, SHB is looking towards a new phase of development. In January 2024, the Board of Directors approved the Transformation Strategy for the period 2024-2028. Numerous policies will be implemented across all of the bank’s operations, with the aim of SHB becoming a leading financial institution.
Building on its strong financial foundation and core values, combined with a mindset of innovation and creativity, SHB is continuing on its path to conquer new heights, bringing enthusiasm to contribute to the country’s economy and the prosperity of its people.
Affirming its position as a top-tier bank in terms of charter capital and total assets, SHB has always actively promoted capital flows into the economy through preferential credit programs for customers, especially individuals, and small and medium-sized enterprises (SMEs) with reasonable interest rates.
Throughout its three-decade journey, SHB has fulfilled its role as a capital conduit for key sectors of the economy, financing the production and business sectors encouraged by the Government and State Bank of Vietnam (SBV).
