Chairman of SHB Do Quang Hien delivers his opening speech and presides over the meeting
This afternoon, April 25, Saigon – Hanoi Commercial Joint Stock Bank (SHB) held its 2024 Annual General Meeting of Shareholders at the Melia Hotel on Ly Thuong Kiet Street, Hoan Kiem District, Hanoi. The meeting voted on and approved numerous resolutions, including the 2024 business plan, dividend distribution plan, and charter capital increase plan.
According to the report of the Shareholder Qualification Verification Committee, 1,361 shareholders were present at 2:10 PM, representing approximately 67% of the total number of shares entitled to vote. The meeting had sufficient quorum to proceed.
Fulfilled all resolutions assigned by the AGM in 2023
Representing the Board of Directors (BOD), Mr. Do Quang Vinh, Permanent Deputy Chairman of the BOD, gave a brief report on the activities of the BOD in the past year. Mr. Vinh said that all resolutions assigned by shareholders at the 2023 General Meeting have been implemented by the Bank. Notably, the business results were positive, with pre-tax profit reaching VND 9,239 billion; equity capital exceeding VND 70,268 billion; dividends paid to increase capital by nearly VND 6,000 billion and issuance of ESOP shares to staff, thereby raising the charter capital to over VND 36,629 billion; divestment of SHB in SHB Financial Company…
In particular, being selected for the VN30 index basket affirms SHB’s financial strength, reputation, and the position of SHB shares in the stock market.
Furthermore, SHB and the investor have signed an agreement to transfer all of SHB’s capital contribution in SHB Laos and are currently completing the necessary procedures to obtain permission from the governments and central banks of the two countries to finalize the agreement. SHB is also selecting suitable partners to transfer capital/convert the operating model of SHB Cambodia.
Mr. Do Quang Vinh reporting on behalf of the BOD at the meeting
Plan to achieve a profit of VND 11,286 billion in 2024
SHB’s BOD believes that in 2024, the global and regional situation will continue to be complex and unpredictable; the consequences of the Covid-19 pandemic will have lasting effects. Domestically, the economy will face a mix of advantages, disadvantages, and challenges. Despite the significant challenges and difficulties, the global economic outlook still has bright spots and optimism. The Vietnamese economy is forecasted by many experts to recover thanks to growth drivers.
In that context, SHB sets a pre-tax profit target of VND 11,286 billion, a 22.2% increase compared to the actual profit in 2023. Total assets are expected to increase by 11.2% to VND 701,000 billion; in which, total outstanding credit balance will increase by 14% to VND 518,555 billion. At the same time, the bad debt ratio is expected to be controlled below 3%.
To implement the plan, the Bank will implement six groups of solutions, including: executive management; promoting green finance, sustainable development; developing customers; risk management mechanisms and policies; organization, personnel, and digital transformation.
Overview of SHB AGM
Positive business indicators
Ms. Ngo Thu Ha, General Director of SHB, presented the report of the Executive Board. Ms. Ha said that in 2023, the difficult global economic situation has significantly impacted the Vietnamese economy. In response to this situation, the government has been proactive, flexible, and decisive, closely directing ministries, agencies, and localities to implement numerous solutions to address difficulties, stimulate growth, and maintain macro-economic stability. As a result, the economy has still achieved positive results. In the financial and banking sector in particular, the SBV has been actively monitoring macroeconomic and monetary developments to promptly adjust policies, issue, and implement optimal tools and solutions to ensure the safety of the credit institution system.
In that context, SHB has achieved many important targets assigned by the 2023 AGM. Specifically, SHB recorded an increase of 16.2% in total assets, reaching VND 630,501 billion. Equity capital reached over VND 70,268 billion. Pre-tax profit was VND 9,239 billion, a decrease of VND 405 billion compared to 2022. The main reason for this decrease was SHB’s increase in provisions to ensure safe operations for the bank.
Notably, SHB’s safety and risk management indicators are all at a good level compared to SBV regulations and international standards. SHB has also been affirmed by international credit rating agency Moody’s with a B1 credit rating. This demonstrates that SHB continues to strengthen its safe, effective, and sustainable operations in a context of global market volatility and challenges.
Ms. Ngo Thu Ha, General Director of SHB
Dividend payment of 16%, of which 11% in shares and 5% in cash
The General Director of SHB also reported to the shareholders the profit distribution plan for 2023. Specifically, based on the business results in 2023 and the profit remaining after setting aside various funds of over VND 5,900 billion, the BOD of SHB will implement a dividend payment plan with a total ratio of 16% of charter capital (equivalent to VND 5,859 billion), including 5% in cash and 11% in shares.
It is expected that after completing the share dividend payment, SHB’s charter capital will increase to nearly VND 40,658 billion. All additional capital will be used primarily for the purpose of lending to businesses, including additional working capital loans, fixed asset financing, and production and business loans, project implementation. The expected disbursement time is the third or fourth quarter of 2024 or upon completion of the issuance plan.
Presiding over the AGM
At this year’s General Meeting of Shareholders, SHB also presented to shareholders a number of other important issues, including the plan to list SHB bonds issued to the public with a total value of VND 5,000 billion, to increase Tier 2 capital, and increase medium- and long-term capital for lending to customers.
SHB also submitted a plan to dismiss two personnel. The first is Mr. Do Duc Hai, a member of the BOD for the term 2022-2027, due to his desire to resign from his position as a BOD member in order to be proactive and ready to comply with the provisions of the 2024 Credit Institution Law and focus on managing SHB’s operations. The next is Mr. Haroon Anwar Sheikh, who also resigned from his position as an independent BOD member
