SHB remains firmly in the top four largest private commercial banks in Việt Nam. Photo courtesy of the bank

HÀ NỘI — As of December 31, 2023, Saigon-Hanoi Commercial Joint Stock Bank (SHB) reached total assets of VNĐ630 trillion and customer deposits of VNĐ497 trillion.

Its Tier-1 capital, in line with Basel II standards, stood at VNĐ70.3 trillion, with charter capital at VNĐ36.1 trillion. SHB remains firmly in the top four largest private commercial banks in Việt Nam. The bank’s outstanding loans totaled VNĐ455 trillion, reflecting a robust year-over-year increase of 17.1 per cent. This growth was driven by the bank’s focus on key sectors vital for economic growth, including rural agriculture, exports, processing and manufacturing industries, construction, infrastructure, and consumables.

Net interest income surged to VNĐ20.5 trillion, a 20 per cent increase from the previous year, while profit before tax reached VND 9,245 billion, indicating stable business performance. Key ratios such as Return on Equity (ROE) and Net Interest Margin (NIM) showed significant growth, with the Cost-to-Income Ratio (CIR) maintained at a strong 23 per cent. SHB has also demonstrated effective cost management, consistently controlling expenses over multiple quarters. Higher provisions in 2023 resulted in an improved provisioning coverage ratio of 75 per cent, up from the previous year.

Despite challenges in both local and international markets, SHB remains committed to supporting business and retail clients through proactive engagement with government policies and the State Bank of Việt Nam (SBV). The bank's focus on national sustainable development and community welfare has become a core principle guiding its operations.

In addition to its cost-cutting initiatives, SHB has introduced a range of preferential interest rate programs, totaling tens of thousands of billions of Vietnamese đồng, for new clients and offering reductions for existing ones. The total interest reduction in 2023 exceeded VNĐ.8 trillion. The bank also implemented various non-financial support measures to help businesses overcome challenges and maintain their operations.

SHB’s strong performance is underpinned by rigorous risk management practices. The bank’s risk management indicators consistently exceed the regulatory requirements set by the SBV and align with Basel II and Basel III standards for liquidity risk management.

In 2023, SHB also embarked on a comprehensive transformation towards becoming a "bank of the future." Its digital transformation initiatives, with clear strategies and objectives, yielded positive results, including dramatic growth in the customer base and transaction volumes.

SHB launched several innovative digital products, such as the SHB Corporate Mobile app, which allows business owners to manage their operations anytime and anywhere, and the SHB SAHA app, offering nearly 40 new features for an enhanced customer experience.

The introduction of an online foreign currency selling feature further strengthened SHB's digital offerings. The bank has automated numerous processes to improve efficiency, bolster risk management, and adopt artificial intelligence. Currently, 90 per cent of key operations can be performed digitally, surpassing the 2025 target set by the banking industry’s Digital Transformation Plan. Additionally, 90 per cent of corporate and retail transactions are conducted through mobile and internet banking.

In 2023, SHB expanded its network, opening five new branches and 25 transaction offices, bringing the total number of domestic and international transaction points to 569. This extensive network has enabled SHB to effectively meet the transaction needs of clients, support economic sectors, create jobs, and contribute to local development, particularly in rural and mountainous areas.

With a focus on sustainable growth, SHB also strengthened its financial position and foundational assets. In 2023, the bank successfully completed the transfer of 50 per cent of SHBFinance’s capital to Ayudhya Bank (Krungsri) of Thailand. SHB also continued to foster fruitful collaborations with international institutions, including the World Bank (WB), International Finance Corporation (IFC), Asian Development Bank (ADB), and KfW. Notably, SHB signed a senior loan agreement with IFC, securing a total package of US$120 million.

2023 marked a significant milestone for SHB as the bank celebrated its 30th anniversary. Throughout the year, SHB engaged in numerous initiatives benefiting customers and the community. The bank was honored with the Third-Class Labour Medal by the Communist Party and State, along with other prestigious awards such as Best Trade Finance Bank in Vietnam, Best ESG Impact Bank in Việt Nam, Outstanding Bank for the Community, and Best Workplace in Asia. These accolades reflect SHB’s positive contributions to the country’s socio-economic development.

With a strong cultural foundation, core values of Heart – Faith – Trust – Knowledge – Wisdom – Prestige, financial strength, an extensive network, modern banking technology, and a talented workforce, SHB is well-positioned to overcome challenges and continue its robust growth in the years ahead. —VNS