A transaction at Saigon-Hanoi Bank. — Photo courtesy of the bank

 

The State Bank of Vietnam (SBV) has granted approval for Saigon - Hanoi Bank (HoSE: SHB) to increase its charter capital to VNĐ40.6 trillion (US$1.6 billion) by issuing dividend shares.

 

Specifically, SHB will issue nearly 403 million shares to pay dividends for 2023 at a rate of 11 per cent. This means that for every 100 shares held, shareholders will receive 11 new shares.

 

The capital for this dividend share issuance will come from the bank's undistributed after-tax profit, as well as the retained earnings from previous years, per the audited financial statements for December 31, 2023. Once completed, SHB’s charter capital will rise by approximately VNĐ4 trillion, from VNĐ36.6 trillion to VNĐ40.6 trillion.

 

This move reinforces SHB's position among the five largest private banks in Vietnam, further enhancing its financial capacity and competitiveness in the international market, while delivering value to shareholders.

 

As outlined in SHB’s 2024 Annual General Meeting resolution, the total 2023 dividend payout will amount to 16 per cent, including 5 per cent in cash that was already paid in August 2024 and 11 per cent in shares.

 

SHB has consistently raised its charter capital through dividend share issuances, with rates between 10 per cent and 18 per cent, strengthening its capital base. This has allowed the bank to exceed regulatory requirements for capital safety ratios and risk management while complying with Basel II and III standards. The bank is committed to sustainable, safe and effective development, continuously upgrading its management capabilities to international standards.

 

Banking expert Associate Professor Đinh Trọng Thịnh highlighted that a solid financial foundation is key to SHB’s market reputation and its ability to attract capital from both individuals and businesses, as well as from the bond market.

 

As of December 31, 2024, SHB's total assets reached VNĐ740 trillion, with an outstanding credit balance of nearly VNĐ523 trillion, marking an 18 per cent growth. The bank's safety, liquidity and risk management indicators exceed central bank regulations, with a capital adequacy ratio of 12 per cent.

 

SHB's 2024-28 transformation strategy focuses on innovation, technology adoption and digital transformation to improve customer experience and optimise operational costs. This is one of the factors that helps optimise the cost to income ratio index at 24.68 per cent – the lowest in the industry. The bank applies modern technology solutions such as artificial intelligence, big data, machine learning, cloud computing and biometrics.

 

With more than 95 per cent of operations digitalised, SHB is leading the industry in digital banking, with over 98 per cent of customer transactions conducted via mobile and internet banking platforms.

 

Looking ahead, SHB aims to become the top bank in terms of efficiency, digital services, retail banking and financial solutions for key enterprises. With a focus on green development and a customer-centric approach, SHB is positioning itself for long-term success in Việt Nam’s evolving financial landscape. — VNS

 

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