Đỗ Quang Vinh - Director of Digital Banking Division, Deputy Director of SHB and Seiichiro Akita - Krungsri President and CEO signed an agreement to transfer 100 per cent of capital at SHB Finance. — Photo courtesy of SHB

HÀ NỘI — SHB on Wednesday signed agreements to transfer charter capital at SHbank Finance Company Limited (SHB Finance) to Bank of Ayudhya in Thailand, commonly known as Krungsri – a strategic member of the Mitsubishi UFJ Financial Group (MUFG).

Accordingly, when the two parties fulfil certain conditions and meet the requirements as prescribed by law and obtain the approval of the State Bank of Việt Nam as well as relevant regulatory agencies of Việt Nam, Thailand, and Japan, SHB will transfer 50 per cent of SHB Finance's charter capital to Krungsri and will continue to transfer the remainder after three years.

The transfer agreement of SHB Finance will bring a significant capital surplus to SHB's shareholders as well as improve the financial capacity and SHB’s reputation. The strategic co-operation between the two banks of the scale and position of Top 5 in Việt Nam and Thailand will open up opportunities for regional development and reach out to the world.

Đỗ Quang Hiển, SHB’s Chairman of the Board of Directors, said: “The consumer finance market in Việt Nam has great potential and room for growth. After a period of selection and negotiation, we have found a suitable partner to contribute to bringing synergistic value in many aspects such as management experience; technology; improve financial capacity; network expansion, and new product development, international cooperation, enhancement of SHB’s reputation and brand name in the region and in the world.”

Krungsri President & CEO Seiichiro Akita said: "SHB’s local expertise and an extensive network in Viet Nam complemented by Krungsri’s strength in consumer finance will enhance SHB Finance’s business competitiveness. Together, we will develop and deliver quality consumer finance products to customers in Việt Nam. This milestone also underscores our commitment to ASEAN Expansion Strategy following our current medium-term business plan covering 2021-23.”

Being in the top 10 consumer finance companies in Việt Nam, SHB Finance is evaluated with a lot of growth potential and strength, with a charter capital of VNĐ1 trillion, 100 per cent owned by SHB Bank - one of the licensed companies with the highest charter capital in the market.

Krungsri is the fifth largest financial group in Thailand in terms of assets, loans, and deposits in which Mitsubishi UFG Financial Group (MUFG) holds 76.88 per cent of the capital. MUFG is Japan’s largest financial group and one of the world’s largest financial organisations. 

MUFG also has a lot of experience in operating in the Vietnamese market, holding 20 per cent ​​of strategic shares in a large domestic bank in Việt Nam and has contributed to the bank's impressive development in the Vietnamese market in recent years. — VNS