SHB approved to raise charter capital to nearly $1.8 billion

SHB approved to raise charter capital to nearly $1.8 billion

Saigon – Hanoi Commercial Joint Stock Bank (SHB) has been granted approval by the State Bank of Việt Nam (SBV) to raise its charter capital to VNĐ45.9 trillion (US$1.75 billion).

A transaction office of SHB. The next capital increase will help SHB maintain its position among the top five privately-owned joint stock commercial banks with the largest capital scale in the system. — Photo courtesy of SHB

Saigon – Hanoi Commercial Joint Stock Bank (SHB) has been approved by the State Bank of Vietnam (SBV) to raise its charter capital to VNĐ45.9 trillion (US$1.75 billion) following a 13 per cent stock dividend payout.

The capital hike will help the lender maintain its position among the five largest private joint stock banks in the country.

Accordingly, SHB will issue over 528.5 million shares to pay a 13 per cent stock dividend to existing shareholders for 2024, meaning each shareholder will receive 13 new shares for every 100 held.

The issuance will be funded from 2024 after-tax profits, following allocations to various reserves. Earlier, the bank completed its 5-per-cent cash dividend payout on June 20. With a total dividend payout of 18 per cent for 2024, the move reflects SHB’s strong commitment to shareholder returns.

The increased capital will be used to expand operational scale, grow business activities, and invest significantlyin digital transformation. SHB is currently implementing its 2024–28 transformation strategy, aiming to become a 'Bank of the Future' by integrating modern technologies such as AI, big data, and machine learning to modernise infrastructure, enhance customer experience, and improve operational efficiency.

In terms of business performance, as of the end of June, SHB’s total assets stood at VNĐ790.7 trillion, up 6 per cent compared to the end of 2024. Outstanding credit grew by 7.8 per cent to VNĐ575.7 trillion, focusing on production and business sectors, as well as industries with high growth potential.

Pre-tax profit reached VNĐ4.4 trillion, fulfilling 30 per cent of the annual target. SHB aims to surpass VNĐ832 trillion in total assets this year, with a longer-term goal of reaching VNĐ1 quadrillion by 2026. 

Bizhub