Moody’s upgrades SeABank’s Baseline Credit Assessment

April, 29/2022 - 14:45
Moody’s Investors Services upgraded the Baseline Credit Assessment from B2 to B1 for Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB).

Moody’s Investors Services upgraded the Baseline Credit Assessment from B2 to B1 for Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB).

Moody's has also maintained SeABank's long-term deposit and issuer ratings at B1 for the fourth consecutive year with a positive outlook.

The assessment is a testament to the efforts of SeABank in business operations, asset quality, profitability and capital in 2021, with Pre-tax profit reaching US$ 144.38 million, equal to 135 per cent of its 2021 budget; total assets increased 18 per cent compared to 2020, reaching US$ 9.36 billion; Total non-interest income in 2021 reached US$ 81.74 million, accounting for 26.3 per cent of total revenue; return on average assets (ROA) and Return on average equity (ROE) are 1.33 per cent and 16.12 per cent respectively; and the NPL ratio at 1.65 per cent.

At the end of the first quarter of 2022, SeABank's business results maintained a sustainable growth rate: total assets reached US$ 10.06 billion, an increase of US$ 851.03 million compared to December 31, 2021; Pre-tax profit reached US$ 56.83 million, up 87.1 per cent compared to the same period of 2021.

Total net revenue increased by US$ 101.03 million, a 61.3 per cent year on year increase, and net revenue from services reached US$ 11.92 million, an increase of 122.65 per cent year on year.

The NOII ratio also recorded an impressive growth of 126.5 per cent over the same period, reaching US$ 32.98 million. The cost-to-income ratio (CIR) continued to drop sharply to 28.32 per cent, according to the Bank's business direction.

The NPL ratio remained stable at 1.64 per cent. Also, in the first quarter of 2022, SeABank has completed increasing its charter capital to US$ 722.18 million.

In the 2022 General Meeting of Shareholders, SeABank sets out a plan to increase its charter capital to US$ 987.25 million in 2022, a pre-tax profit target of US$ 212.62 million, with total assets expected to grow by 10 per cent compared to 2021, and the NPL ratio controlled under 2 per cent.

SeABank has been on the list of systematically important banks in the banking system according to the regulations of the State Bank of Vietnam and received prestigious awards such as Typical Bank for the Community 2021, Bank for the Community in 2021 (Vietnam Banking Association), Bank of the Year in Vietnam 2021 (The Banker - UK), and the Top 50 Fastest Growing Enterprises (Vietnam Report).