Krungsri to purchase remaining 50 per cent of SHBFinance's charter capital early
Krungsri to purchase remaining 50 per cent of SHBFinance's charter capital early
Ayudhya Public Bank Limited (Krungsri), a member of Japan's MUFG Group, announced plans on November 5 to expedite the purchase of the remaining 50 per cent of SHBFinance's charter capital.
The transfer will provide significant capital gains to SHB’s shareholders while improving SHB’s financial capability and position in the market.
SHB announced a resolution approving the transfer of the remaining stake in SHBFinance to Krungsri.
In August 2021, SHB and Krungsri signed an agreement for the transfer of SHBFinance's entire charter capital in two phases. In May 2023, SHB completed the transfer of half of SHBFinance’s capital to Krungsri. SHBFinance was transformed from a single-member limited liability finance company into a multi-member company, with a new licence from the State Bank of Vietnam. According to the agreement, the remaining 50 per cent of SHBFinance's charter capital would be transferred by SHB to Krungsri after three years.
The transfer of 100 per cent of SHBFinance’s charter capital provides a significant capital surplus to SHB’s shareholders, strengthening the company's capital base and increasing its financial flexibility. SHB will continue to collaborate with partners to develop its retail business offerings with technology platforms, convenient products, as well as advanced and modern services. In particular, SHB will focus on core business segments and invest in digital transformation, opening up many new development opportunities.
In the first nine months of 2024, SHB’s accumulated pre-tax profit reached VND9 trillion ($355 million), fulfilling 80 per cent of its annual target. Total assets stood at VNDD688.3 trillion ($27.2 billion), up 9.2 per cent from the end of 2023. Outstanding credit balances reached VND495.4 trillion ($19.5 billion). SHB’s key business indicators are among the leading groups in the industry, such as a return on equity of 22.8 per cent.
With the orientation of sustainable, safe, and effective development, SHB is improving its management capacity according to international standards and modern models. The bank's capital adequacy ratio is over 11.8 per cent, exceeding the regulatory requirement set by the central bank and contributing to both the operational safety and sustainability of the banking industry.
As part of its comprehensive transformation strategy, SHB has consistently bolstered innovation, technology adoption, and new initiatives to bring convenient and modern services to customers. By applying technology in the operation process, SHB has optimised its cost-to-income ratio at 24.68 per cent, the lowest in the industry.
In addition, the bank has adopted leading technologies such as AI, machine learning, and big data. This is coupled with digitising internal operations from products to customer services. As a result, transactions via digital channels and online platforms are among the top in the industry. As of present, 90 per cent of its essential banking services can be performed on digital channels, and 92 per cent of transactions by both corporate and retail customers are completed via mobile and internet banking.
SHB has set a goal to become the top bank in Vietnam by efficiency, the most favoured digital bank, the best retail bank, and the top bank in providing capital sources and financial products to both private and state-owned enterprises. SHB also boasts a supply chain, value chain, and ecosystem with green development.
As of the first half of 2024, after nearly seven years of operation, SHBFinance held eighth position in the market, aiming to become among the top five within the next five years. In the past year, SHBFinance has achieved remarkable growth in market share, serving more than 3 million loan applications and recording great customer engagement, with the rate of customer returns increasing by 15.3 per cent.
