2024 – A Pivotal Year of Transformation for SHB
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SHB will hold its annual general meeting of shareholders on April 25, 2024, to announce its 2024-2028 transformation strategy with clear steps towards becoming a TOP-1 efficient bank, the most favorite Green Bank and Digital Bank; the best retail bank, and a TOP bank in providing capital, financial products and services to strategic corporate clientele with a green and sustainable development value and supply chain ecosystem.
2024 is identified as a pivotal year for transformation, strengthening internal capacity and maintaining sustainable and effective growth momentum. The bank sets a profit target of VND 11,286 billion, an increase of 22% over the previous year. Total assets will reach VND 701,000 billion, charter capital of VND 40,658 billion, an increase of nearly 12%; strictly controlling the bad debt ratio below 3%.
The goal of SHB affirms a strong step forward, expanding its scale to meet the increasing capital needs of the economy; while increasing competitiveness in the international integration process and meeting the interests and expectations of shareholders. SHB has and continues to cooperate with leading global partners such as BCG, IFC, PWC…
The bank will strengthen its internal capacity, at the same time maintain a sustainable and effective growth momentum, developing based on the four pillars of the Bank: Innovation in mechanisms and institutions; People are the subjects; Customer-centric; Information technology platform and digital transformation. The Board of Directors will direct the implementation of solutions and measures to achieve the goals with the motto “Innovation – Responsibility – Efficiency”, with six core cultural values “Heart – Faith – Trust – Knowledge – Intelligence – Vision”.
Throughout 2023, in the context of many macroeconomic challenges, with a solid financial foundation and a strong transformation rate, SHB has firmly established its position as a leading financial institution in the system with charter capital reaching VND 36,194 billion, among the TOP 4 largest private banks in Vietnam. Capital safety ratios, risk management always strictly comply with the regulations of the State Bank, liquidity risk management according to Basel II and Basel III standards. Pre-tax profit in 2023 reached VND 9,239 billion and is the most efficient bank with a CIR ratio of 23.7 – the lowest in the system, in which comprehensive digitalization contributes significantly to helping the bank manage its costs.
SHB is expected to pay a 2023 dividend of 16%, of which 5% in cash and 11% in shares. The bank has maintained a policy of regular dividend payments to shareholders over many years, accompanying the economy through difficult times. This also creates trust and cohesion between shareholders and the bank.
This year, the plan to pay dividends partly in cash is the bank’s effort to share and support shareholders in the context of the economy being in a recovery phase. Besides, maintaining part of the dividend in shares also helps the bank continue to strengthen its charter capital foundation. Over the past 10 years, the charter capital of SHB has increased nearly 4 times and reached VND 36,629 billion by the beginning of April.
Kick-starting the 5-year Transformation Strategy
In the 2024-2028 strategy period, SHB sets clear key objectives, gradually expanding its scale, strengthening its financial foundation, developing customers, and investing in technology towards a modern banking model, a bank of the future.
With its position in the TOP 4 largest private banks in the system, SHB will continue to strengthen the development of strategic clientele, expand relationships with major customers and tap into the ecosystem and value chain of strategic clientele and major customers. Based on the foundation of cooperation with the corporate customer group, SHB continues to promote the development of Ecosystem Banking to ensure common prosperity and the connection between SHB and this customer base.
In addition, in line with the general trend of the market, SHB expands and promotes retail activities through a multiplier effect. Growing retail banking through banking solutions for employees, the workforce of strategic clientele, major customers and the ecosystem, and value chain of these clientele, expanding to their families.
Aiming to improve financial and operational efficiency, boost labor productivity, SHB will focus on developing high-quality human resources, standardizing, digitalizing processes and applying effective risk management measures. Combining human factors and technology creates momentum for the entire banking system. At the same time, the bank continues to apply industry standards and best practices, while being suitable for SHB according to the transformation roadmap to minimize risks and optimize efficiency throughout the bank.
The transformation strategy is implemented by SHB in 3 stages according to a specific roadmap, ensuring a comprehensive transformation from creating fundamental growth to comprehensive development of modern banking activities. In the 2024 – 2025 period, SHB will build and develop a platform; 2026- 2027 is the phase of accelerating growth, and by 2028 it will be a breakthrough, efficient and sustainable.
SHB is gradually transforming itself on the development journey, continuing and innovating, towards a sustainable future, spreading good values to society, and joining hands to build a strong Vietnam.
