On 31, 2021, Moody's Investors Services (Moody’s) raised its outlook for Southeast Asia Commercial Joint Stock Bank's (SeABank - Vietnam, stock code SSB) to Positive from Stable and affirmed SeABank’s long-term credit rating at B1 for the third year in a row.

The positive outlook on the ratings of SeABank reflects Moody’s view that improvements in asset quality over recent years - which could translate into lower credit costs and higher profitability - could raise the bank’s BCA over the next 12 – 18 months.

Asset quality improved steadily at SeABank in recent years. The problem loans ratio, which includes nonperforming loans (NPLs) and gross bonds issued by the Vietnam Asset Management Company (VAMC), declined to 1.9 per cent as of the end of 2020 from 2.3 per cent. SeABank has also been building up their problem loans coverage. Moody’s expects asset quality to remain largely stable at SeABank amid the supportive economic environment in Viet Nam.

Moody’s also expects profitability at SeABank to improve over the next 12 – 18 months driven by higher yields from its loans to individuals and small and medium enterprises (SMEs). Capital, in turn, will remain stable as internal capital generation will support asset growth.

Moody's improved SeABank's development outlook from Stable to Positive, indicating the organisation's positive view of the bank's performance and prospects. This is also a critical foundation for reaffirming SeABank's position, potential, and reputation with customers, partners, and credit rating agencies. SeABank is always at the forefront of the market in terms of meeting the highest international standards, as well as proactively, transparently, safely, and sustainably managing and operating business operations.

SeABank has achieved substantial expansion in recent years and has made beneficial contributions to the economy as a whole. SeABank is currently considered as one of 17 credit institutions with a significant impact on the Vietnamese banking industry in 2021.

At the end of the first quarter of 2021, SeABank achieved positive business results with pre-tax profit of US$30.24 million, 2.3 times higher than the same period in 2020. Total assets reached US$8 billion, a 24 per cent YoY increase. Customer deposits reached US$5 billion, up 16.8 per cent YoY, while loans to customers also increased by 14.3 per cent over the same period, reaching US$4.81 billion. Besides, the bank's total net operating income also reached US$62.4 million, up 48 per cent and the cost to income ratio was at 40.8 per cent compared to 52.9 per cent for the same period in 2020.

SeABank was also formally listed and traded on HoSE with the stock code SSB in the first quarter of 2021, and had successive climbing sessions, placing SeABank's capitalisation value into the Top 12 banks with the greatest market capitalisation in the world stock market. At the end of the trading session on May 31, 2021, SeABank's market capitalisation reached US$2.14 billion, making SeABank one of the top 12 banks by market capitalisation list in the Vietnamese stock market.

In addition, SeABank intends to raise its charter capital to US$724.12 million. The increased charter capital allows SeABank to expand and extend its network of branches and transaction offices, promote business development, improve the bank's operating quality, and, at the same time, help SeABank survive market swings.