On April 25th, Saigon – Hanoi Commercial Joint Stock Bank (SHB) successfully held its 2024 Annual General Meeting of Shareholders at the Melia Hotel in Hanoi. The bank announced its remarkable achievements for the 2023 fiscal year – a special milestone coinciding with the bank’s 30th anniversary.
Overview of the SHB General Meeting of Shareholders in 2024 with nearly 1,400 shareholders in attendance.
Over three decades of development alongside the country, consistently present during significant national milestones, SHB has become a symbol of relentless efforts in creating and spreading positive values for the community, society, and all Vietnamese people. The bank is unwavering in its support of important national policies: assuming mergers as part of the credit institution restructuring plan; providing capital for key infrastructure projects, renewable energy projects, and clean agriculture; implementing numerous loan packages offering favorable interest rates to support individuals and businesses, consistent with the guidance of the Government and the State Bank.
Throughout its history, SHB has consistently sought unique paths, continuously adapting with flexibility to each era, maintaining a long-term vision.
SHB at 30: Full of passion, eager to break through and soar to new heights
With a solid foundation and the cultural depth of a 30-year-old institution, steadfast in its commitment to sustainable, safe, and effective development, and constantly improving its corporate governance to international standards and modern models, SHB ended 2023 with numerous remarkable achievements.
According to the report of the Executive Board at the 2024 General Meeting of Shareholders, as of December 31, 2023, SHB’s total assets reached over VND 630,500 billion, a 16% increase compared to the end of the previous year. Equity capital exceeded VND 70,268 billion. Market capital raised reached VND 497,417 billion; outstanding loans amounted to VND 455,718 billion, funding production and business sectors that are encouraged by the Government and the State Bank of Vietnam (SBV), which drive the economy’s growth.
Recently, SHB was recognized by international credit rating organization Moody’s, which reaffirmed the bank’s B1 credit rating, demonstrating the bank’s continued resilience, safety, and stability amidst market volatility.
Shareholders highly valued SHB’s achievements over the past 30 years and provided numerous constructive suggestions and contributions.
Net revenue from business operations in 2023 reached VND 21,328 billion, a 10% increase compared to 2022. Pre-tax profit reached VND 9,239 billion. SHB is the bank with the best cost management in the market, with a CIR (cost-to-income ratio) of 23.7%. SHB strictly adheres to risk management policies and ensures capital adequacy ratios that exceed the requirements of the State Bank of Vietnam, fully complying with Basel III standards in liquidity risk management.
Last year, SHB completed its employee stock option grant issuance and declared a 2022 stock dividend at a rate of 18%, increasing its charter capital to VND 36,629 billion, making it one of the top four largest private commercial joint stock banks in the system. In July 2023, SHB shares officially joined the VN30 large-cap stock group, elevating the bank’s position in the stock market.
In 2023, SHB completed the transfer of 50% of its shares in SHBFinance to Ayudhya Public Company Limited (Krungsri) of Thailand, and will transfer the remaining 50% stake in three years, creating additional resources to drive business activities in core segments, replenish capital, and enhance financial capacity.
The bank has continued with plans to divest its holdings in Saigon – Hanoi Commercial Joint Stock Bank (SHB Lao) and Saigon – Hanoi Commercial Joint Stock Bank (SHB Cambodia). Currently, an investor has proposed acquiring all of the shares in SHB Lao, and both parties are working to complete the necessary procedures.
In the international market, SHB has been a trusted partner of several financial institutions, such as the World Bank (WB), the International Finance Corporation (IFC), the Asian Development Bank (ADB), and KfW. Over the past year, SHB has signed a cooperation agreement with Busan Bank, a member of BNK Financial Group in South Korea, establishing a partnership in all areas of business, particularly corporate banking, digital banking, and investment banking.
The Board of Directors responds to shareholders’ questions regarding business objectives and strategies for the new development phase.
The 2023 report by the Board of Directors and the Executive Board also highlights SHB’s timely and practical efforts in supporting and standing alongside businesses and individuals during challenging times, effectively implementing policies set by the Government and the State Bank. Notably, SHB has implemented various preferential loan programs worth tens of thousands of billions of VND for new customers and reduced interest rates for existing clients. The bank has also continuously rolled out non-financial support policies, helping businesses overcome challenges and gradually stabilize and recover. SHB has allocated over VND 87 billion to assist individuals in difficult situations, honor veterans, and support educational, healthcare, cultural, and sports development initiatives, among others.
In recognition of its contributions to the nation’s socio-economic development, SHB was honored to receive the Third-Class Labor Medal at its 30th-anniversary celebration in November 2023. Reputable organizations both domestically and abroad have also recognized SHB with several prestigious awards, including Best ESG Impact Bank in Vietnam, Outstanding Community Bank, Bank with the Best Social Impact Financial Initiative in 2023, Bank Supporting SMEs, and Top 50 Most Creative and Effectively Operating Enterprises in Vietnam.
A comprehensive and robust transformation
Following the momentum of 2023, SHB is focusing its resources on implementing a strategy of comprehensive and robust transformation based on four pillars: Reform of mechanisms, policies, regulations, and processes; People as the main focus; Customer and market centricity; Modernization of information technology and digital transformation, while adhering to the six core cultural values: “Heart – Trust – Belief – Knowledge – Intelligence – Vision.”
To realize this commitment, the SHB Board of Directors has established a Transformation Division with the participation of leading experts in banking and finance and approved the 2024-2028 Transformation Strategy.
Within this framework, SHB aims to become the Top 1 Bank in terms of efficiency; the Most Preferred Digital Bank; the Best Retail Bank; and a leading bank in providing financial products and services tailored to private and state-owned strategic corporate clients, with a comprehensive supply chain, value chain, ecosystem, and green development.
Numerous significant changes will be implemented resolutely starting in 2024, relating to target customer segments, sales channels and models, service models, technology and infrastructure, and modern and effective risk management. The Transformation Strategy is built on a specific roadmap with three phases: Phase 1 (2024-2025): Building and Developing the Foundation; Phase 2 (2026-2027): Accelerating Growth; and Phase 3 (2028): Breakthrough, Efficiency, and Sustainability.
In 2024, the pivotal year of the Transformation Strategy, SHB projects its Total Assets to exceed VND 701,000 billion; its charter capital to increase by 12% to VND 40,658 billion; strict control of the bad debt ratio below 3%; growth in total outstanding loans
