A customer at a branch of SHB. SHB expects the dividend payout ratio in 2023 to be 15 per cent. Photo SHB

HÀ NỘI - The Saigon-Hanoi Bank (SHB) has set a profit target of more than VNĐ10 trillion (US$426,400) this year and plans to seek foreign strategic partners.

At the Annual General Meeting of Shareholders on Tuesday, Ngô Thu Hà, General Director of SHB, presented two business scenarios in 2023, corresponding to two plans on credit growth limits of 10 per cent and 14 per cent.

Specifically, with a credit growth limit of 10 per cent, equivalent to VNĐ429.8 trillion, SHB aims to increase pre-tax profit by 6.15 per cent to VNĐ10.3 trillion; total assets up by 8.93 per cent to VNĐ600 trillion; mobilised capital up by 12.05 per cent to VNĐ456.18 trillion.

With a credit growth limit of 14 per cent, equivalent to VNĐ445.12 trillion, the target pre-tax profit will increase by 9.67 per cent to VNĐ10.63 trillion; total assets will be up by 10.09 per cent to VNĐ606.5 trillion, and mobilised capital is expected to increase by 14.78 per cent to VNĐ467.29 trillion.

In both options, SHB expects the dividend payout ratio in 2023 to be 15 per cent.

Regarding the increase of charter capital, Đỗ Quang Vinh, a member of the Board of Directors of SHB, presented to shareholders at the meeting a plan to issue more than 552 million shares to existing shareholders to pay dividends in 2022. The issuance rate is 18 per cent, with a par value of more than VNĐ5.52 trillion.

Issuing time is within 45 days from the date the State Securities Commission notified the receipt of full issuance report documents, and is expected to be completed in 2023. SHB said that the charter capital would be raised by VNĐ5.52 trillion and is expected to supplement working capital.

In addition, the bank will also issue 45.12 million shares under the employee stock ownership plans (ESOP) at the price of VNĐ10,000 per share. The shares issued to employees will be restricted from being transferred for 18 months from the ending date of the issuance.

After completing the above two issuances, SHB's charter capital will increase from VNĐ30.67 trillion to VNĐ36.6 trillion.

Regarding the search for foreign strategic investors, Đỗ Quang Hiển, Chairman of the Board of Directors of SHB, said he was negotiating with many partners.

SHB plans to find long-term foreign strategic partners who will invest capital and participate in administrative support and technology sharing.

"It is expected that a foreign strategic partnership will be found for SHB and our partner this year or early next year," said SHB's Chairman.

In 2022, SHB's total assets reached nearly VNĐ551 trillion, up 8.7 per cent compared to the end of 2021, ranking in the top 6 in total assets among the largest private joint stock commercial banks in Việt Nam.

Equity capital reached VNĐ62.6 trillion, up 17.8 per cent compared to 2021. Total deposits reached more than VNĐ407 trillion, up 7.6 per cent, and outstanding loans to customers reached more than VNĐ385 trillion, up 10 per cent.

In 2022, SHB's pre-tax profit reached more than VNĐ9.7 trillion, up 55 per cent over the same period last year. SHB also completed the payment of dividends for 2021 in shares at the rate of 15 per cent.

As of December 31, 2022, SHB's charter capital reached VNĐ30.67 trillion. VNS