SHB's decision to increase charter capital will allow the lender to be more flexible in capital utilization, expanding its customer base for lending and developing its network to meet customer demand, stated Nguyen Van Le, CEO of SHB, in the bank's statement on its website.
SHB increases charter capital to US$528 million.
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Moreover, Le stressed that this is an important step for SHB to realize the objective of becoming Vietnam's top multi-functional retail bank following international standards and to step-by-step catch up with the fourth industrial revolution by launching unique and breakthrough products and services.
By the end of last year, SHB's total assets reached VND277.99 trillion (US$12.1 billion), placing it among the top 5 private commercial banks in Vietnam, according to the bank's financial report. The bank last year posted a pre-tax profit of VND1.93 trillion (US$84.5 million), up 66% year-on-year and 11% higher than the annual target.
As the bank is on course for healthy development, the State bank of Vietnam (SBV)'s Governor has given permission for SHB to establish 5 additional branches in Son La, Hai Duong, Nam Dinh, Binh Thuan, and Vinh Long, informed SHB on its website.
Additionally, the bank is allowed to open 20 transaction offices under its branches across the country. SHB currently has a network of 500 transaction offices in Vietnam, Laos, and Cambodia, serving nearly 4 million customers.
As of October 31, 2017, the total assets of the banking sector reached an all-time high of VND9,400 trillion (US$412 billion), up 10.87% compared to the beginning of the year, according to the SBV.
In 2017, the after-tax profit of the banking sector increased by 44.5% over 2016, stated the 2017 financial report of the National Financial Supervisory Commission (NFSC). The return on assets (ROA) and return on equity (ROE) ratios were higher than in the previous year, reaching 0.69 and 10.2%, respectively (against 0.56 and 8.05% in 2016).
