Krungsri seeks to accelerate purchase of 50% of SHBFinance’s charter capital
Krungsri seeks to accelerate purchase of 50% of SHBFinance’s charter capital
Ayudhya Public Bank Limited (Krungsri), a member of Japan's MUFG Group, has proposed to Saigon - Hanoi Commercial Joint Stock Bank (SHB) that it will speed up the acquisition of the remaining 50 per cent of SHBFinance’s charter capital.
The move, ahead of schedule, will provide significant capital gains to SHB’s shareholders and strengthen the bank’s financial position and market standing. — Photo courtesy of the bank |
This move, ahead of schedule, promises to deliver substantial capital gains to SHB’s shareholders, while further enhancing SHB’s financial strength and market position.
On Tuesday, SHB officially announced its approval of the transfer of the remaining stake in SHBFinance to Krungsri. This decision marks the second phase of the planned transaction, in which SHB will transfer the remaining 50 per cent of its shareholding in SHBFinance, in line with an agreement made between the two parties.
The partnership between SHB and Krungsri dates back to August 2021, when the two banks signed an agreement for a two-phase transfer of SHBFinance's entire charter capital.
In May 2023, SHB successfully completed the first stage, transferring 50 per cent of SHBFinance’s capital to Krungsri. At the same time, SHBFinance was restructured from a single-member limited liability finance company into a multi-member company, under a new decision and licence from the State Bank of Việt Nam.
According to the original terms, SHB was set to transfer the remaining 50 per cent of SHBFinance's charter capital to Krungsri within three years. However, with the latest resolution, this transfer is now being expedited, which will significantly bolster SHB’s capital position and strengthen its financial foundation.
The full transfer of SHBFinance to Krungsri will provide a considerable capital surplus to SHB’s shareholders, contributing to a stronger capital base and greater financial flexibility. SHB has consistently worked to enhance its financial health and market competitiveness and this deal is expected to support those efforts by accelerating its digital transformation and expanding its retail business offerings.
Beyond the immediate capital benefits, SHB's continued collaboration with strategic partners like Krungsri will enable the bank to invest further in digitalisation, technology platforms and the development of modern financial services. This aligns with SHB's long-term focus on strengthening its core business operations and exploring new growth opportunities in an increasingly tech-driven banking landscape.
In the first nine months of the year, SHB posted robust financial results. The bank’s accumulated pre-tax profit reached VNĐ9 trillion, achieving 80 per cent of its annual target. Total assets grew by 9.2 per cent to VNDD688.3 trillion and outstanding credit balances reached VNĐ495.4 trillion. Key business indicators, including a Return on Equity (ROE) of 22.8 per cent, continue to position SHB among the top performers in the banking sector.
The bank's Capital Adequacy Ratio (CAR) stands at over 11.8 per cent, exceeding the regulatory requirement set by the central bank, ensuring both operational safety and sustainability.
Looking ahead, SHB is embarking on a comprehensive transformation strategy for the 2024-28 period. At the heart of this strategy is innovation, the adoption of cutting-edge technologies and a relentless drive to enhance customer experience. The bank is focusing on improving operational efficiency through digitalisation, optimising costs and refining its service offerings.
SHB has successfully implemented advanced technologies such as artificial intelligence (AI), machine learning and big data analytics. These innovations have played a crucial role in digitising internal operations, transforming both products and services. As of 2024, 90 per cent of essential banking services can be accessed through digital channels and 92 per cent of customer transactions, both corporate and retail, are completed via mobile and internet banking.
SHB’s digital-first approach has also contributed to the optimisation of its cost-to-income ratio (CIR), which stands at an industry-leading 24.68 per cent, the lowest in the sector.
SHB’s ambitious goal is to become the top bank in Việt Nam by efficiency, digital banking leadership and customer satisfaction. The bank aspires to be recognised as the most favoured digital bank, the best retail bank and a leading provider of financial products and services to both private and state-owned enterprises. Additionally, SHB is focused on fostering green development and building a comprehensive ecosystem that integrates supply and value chains.
With the acceleration of the SHBFinance transaction, SHB is poised to further cement its position as a forward-thinking, technologically advanced financial institution, well-equipped to thrive in a competitive and rapidly evolving market.
