SHB aims to be The most efficient bank; The premier provider of financial services to strategic corporate customers with a green supply chain and ecosystem; The preferred digital bank, and The leading retail bank. We are enhancing our financial, human, and technological capacities, driven by strong leadership and the pioneering spirit of the Dragon to achieve these goals.
Vision for 2028: SHB aims to become
Emerging as the foremost destination for dependable financial solutions, we prioritize empathy and customer insight at every step of our customers’ journey. Our approach integrates a sophisticated and comprehensive range of products and services, blending modern innovation with timeless principles. We are committed to meeting every customer’s needs with exceptional care, adding value even to their smallest requirements.
Establishing an optimal workplace culture where every employee is valued as an integral part of the organization, continuously trained, and fully engaged in driving both the Bank’s growth and their personal success.
Ensuring the protection of shareholder interests and delivering enduring value through an alternative strategy that emphasizes sustainable and efficient growth.
Originating from the HEART, fostering FAITH, cultivating T R U S T WO R T H I N E S S , accumulating KNOWLEDGE, attaining WISDOM, and perpetually ascending to GREATER HEIGHTS.
Over its 30-year history, SHB has remained committed to ethical principles and concrete actions rooted in 6 core values. These values underpin the bank’s brand philosophy and corporate culture, fostering trust among shareholders, partners, customers, employees, and the community:
At SHB, we uphold the notion of “HEART” as the quintessential essence. It is the nucleus of existence, embodying paramount excellence and influencing all other human attributes. Rooted in this philosophy, we endeavor to wholeheartedly dedicate ourselves to shareholders, partners, customers, employees, and the community.
At SHB, the concept of “FAITH” signifies unwavering commitment to defined objectives. Our team consistently relies on their courage and capabilities, firmly trusting in the vision of the Board of Directors and the Bank’s leadership. This steadfast belief extends to the Bank’s mission and strategic direction.
“TRUSTWORTHINESS” embodies integrity, a fundamental characteristic in interpersonal relationships, fostering mutual trust in agreements. At SHB, the precept of integrity is paramount. This steadfast commitment has effectively solidified SHB’s esteemed reputation within the financial market, ensuring that it is both preserved and progressively fortified over time.
At SHB, "KNOWLEDGE" encompasses understanding, expertise, skills, and experience acquired through accumulation and learning. In pursuit of success, especially in the digital age, SHB personnel continuously strive to enhance their knowledge, aiming for international standards.
“WISDOM” is a refined aspect of “Knowledge” that systematically addresses real-life and business challenges effectively. At SHB, we take pride in leveraging wisdom to convert challenges into opportunities during economic fluctuations, transforming accumulated knowledge into practical results.
"GREATER HEIGHTS" means stature, shown by achievements and levels of expertise. Over three decades of development, starting with dedication, SHB has expanded its reach to become one of the Top 5 largest private joint stock commercial banks in Vietnam.
Chairman
Mr. Do Quang Hien, born in 1962, graduated as a Radio Physics Engineering from Hanoi University. He has a rich professional background and extensive experience.
He served at SHB and was elected Vice Chairman of the Board of Directors from 2005 to 2008. Since 2008, he has held the position of Chairman of the Board of Directors at SHB.
With four decades of experience in corporate governance and banking and finance, he has held prominent roles including Chairman and CEO at T&T Group Joint Stock Company, Saigon - Hanoi Securities Joint Stock Company, and Sai Gon - Ha Noi Insurance Corporation. Prior to that, he contributed his expertise to organizations such as Hanoi Radio & Television Broadcasting, Hanoi Electronics Company (Hanel), and the National Institute of Technology Research.
He currently holds other significant positions such as:
Throughout his illustrious career, he has been honored and recognized for his outstanding achievements, contributing to socialism and national defense, including:
Mr. Do Quang Vinh
Vice Chairman
cum Deputy CEO
Mr. Do Duc Hai
Vice Chairman
cum Deputy CEO
Mr. Thai Quoc Minh
Member of BOD
Ms. Ngo Thu Ha
Member of BOD cum CEO
Mr. Pham Viet Dan
Member of BOD
Mr. Do Van Sinh
Independent Member of BOD
Mr. Haroon Anwar Sheikh
Independent Member of BOD
Mr. Pham Hoa Binh
Head of BOS
Ms. Le Thanh Cam
Full-time Member of BOS
Mr. Vu Xuan Thuy Son
Full-time Member of BOS
Ms. Ngo Thu Ha
CEO
Mr. Do Duc Hai
Deputy CEO
Mr. Le Dang Khoa
Deputy CEO
Mr. Do Quang Vinh
Deputy CEO
Ms. Ninh Thi Lan Phuong
Deputy CEO
Ms. Hoang Thi Mai Thao
Deputy CEO
Mr. Luu Danh Duc
Deputy CEO
Mr. Nguyen Huy Tai
Deputy CEO
Ms. Ngo Thi Van
Chief Accountant
Mr. Nguyen Dinh Duong
Chief Internal Auditor
Mr. Luu Tien Cuong
Chief Risk Officer
Mr. Dang Cong Hoan
Chief Retail Banking Officer
Mr. Vu Tuan Anh
Chief Credit Officer
Ms. Nguyen Thanh Loan
Deputy Chief HR Officer
Mr. Cao Minh Tuan
Chief Debt Collection Officer
Mr. Dinh Ngoc Dung
Deputy Chief Corporate Banking Officer
Mr. Dong Xuan Hoa
Deputy Chief Marketing Officer
Corporate name:
Full name in Vietnamese:
Ngân hàng TMCP Sài Gòn – Hà Nội
Full name in English:
Saigon Hanoi Commercial Joint Stock Bank
Abbreviated name in English:
SAHABANK
Business registration certificate number:
1800278630 issued by Hanoi Department of Planning and Investment.
First registration:
December 10, 1993
Registration for the 34th amendment:
September 20, 2023
Charter capital:
36,193,981,130,000 VND
Owners’ Equity:
50,098,280,000,000 VND
Address:
77 Tran Hung Dao - Hoan Kiem District - Hanoi City.
Phone::
(024) 3942 3388
Fax:
(024) 3941 0944
Website:
www.shb.com.vn
Stock ticker:
SHB
Saigon - Hanoi Commercial Joint Stock Bank (SHB), previously known as Nhon Ai Rural Commercial Joint Stock Bank, established in 1993 in Can Tho. SHB rebranded and moved its headquarters to Hanoi in 2006. Listed on the Hanoi Stock Exchange in 2009, SHB now operates 571 domestic and foreign transaction points across 50 provinces and cities. As of December 31, 2023, SHB’s total assets reached VND 630,501 billion, solidifying its position among the top four largest private joint stock commercial banks by charter capital.
Founding
SHB Saigon - Hanoi Commercial Joint Stock Bank (SHB), previously known as Nhon Ai Rural Commercial Joint Stock Bank, established in 1993 in Can Tho. SHB rebranded and moved its headquarters to Hanoi in 2006. Listed on the Hanoi Stock Exchange in 2009, SHB now operates 571 domestic and foreign transaction points across 50 provinces and cities. As of December 31, 2023, SHB’s total assets reached VND 630,501 billion, solidifying its position among the top four largest private joint stock commercial banks by charter capital.
Listing
SHB was founded on November 13, 1993, under Decision No. 214/QD-NH5 and Operation License No. 0041-NH/GP issued by the State Bank of Vietnam, formerly known as Nhon Ai Rural Joint Stock Commercial Bank. The Business Registration Certificate No. 1800278630 was issued by the Hanoi Department of Planning and Investment, amended for the 34th time on September 20, 2023.
Embarking on a remarkable 30-year journey, Saigon - Hanoi Commercial Joint Stock Bank (SHB) has transformed from a humble rural bank into one of the Top 5 largest private joint stock commercial banks in Vietnam. Guided by the ethos “From Heart to Greater Heights”, with each milestone achieved, we have soared to new heights, continually pushing boundaries and striving for excellence as we forge ahead towards a brighter future.
Nhon Ai Rural Commercial Joint Stock Bank was founded on November 13, 1993, in Can Tho, with a charter capital of VND 400 million, with the mission to serve customers in the agriculture and rural sectors.
In 2005, during a “landmark” encounter with the Chairman of Nhon Ai Rural Bank, entrepreneur Do Quang Hien adeptly negotiated to become a major shareholder and was entrusted with the responsibility to steer the bank forward.
In 2006, Nhon Ai Rural Commercial Joint Stock Bank underwent a pivotal transformation, officially transitioning its operational model to an Urban Commercial Joint Stock Bank. Concurrently, it rebranded itself as Saigon - Hanoi Commercial Joint Stock Bank (SHB), with a charter capital of VND 500 billion.
In 2007, two prominent state-owned enterprises, the Vietnam National Coal and Mineral Industries Group (Vinacomin) and the Vietnam Rubber Group (VRG), emerged as strategic stakeholders of SHB. This development underscored SHB’s esteemed standing among private commercial banks. The executives from Vinacomin and VRG were directly involved in SHB’s Board of Directors from 2007 to 2014.
In 2008, the headquarters relocation from Can Tho to Hanoi marked a significant milestone in scaling up operations, with a charter capital of VND 2,000 billion.
In 2009, SHB was one of the first three banks to officially list its shares on the Hanoi Stock Exchange
Increased its charter capital to nearly VND 5,000 billion.
Remained one of the fastest-growing and most profitable joint stock commercial banks.
On its 18th anniversary, SHB was honored to receive the Third-Class Labor Medal awarded by the President.
Implemented a regional expansion strategy:
In February 2012, SHB opened a branch in Cambodia, with a total investment of USD 37 million.
In September 2012, a branch in Laos was opened with a charter capital exceeding USD 5 million.
Implementing the state policy of restructuring the banking industry, SHB pioneered the merger with Hanoi Housing Bank (Habubank), a longestablished bank in Vietnam. SHB assumed and managed all debts for many years afterward, contributing to the stabilization of the domestic banking system and enhancing Vietnam’s image in the international market.
Celebrating the 20th anniversary, SHB was honored to receive the Second-Class Labor Medal awarded by the President.
Proudly affirming its role as a companion in building the country, SHB has sponsored trillions of VND for numerous key national projects.
SHB emerged as the sole strategic financial partner in the Indochina region for the globally renowned football club, Manchester City. This partnership not only elevated SHB’s position but also enhanced the Vietnamese brand’s image internationally.
SHB officially inaugurated a whollyowned subsidiary bank in both Laos and Cambodia, further solidifying its influence and presence within the region.
Continuingitscommitment to implementing the government and State Bank of Vietnam policies regarding the merger of struggling credit and financial institutions, SHB facilitated the merger of Vinaconex - Viettel Consumer Finance Company and established a Consumer Finance Company under SHB’s umbrella. This move significantly bolstered the financial ecosystem and expanded the consumer finance network, further enhancing SHB’s offerings and market reach.
SHB Bank and Barcelona Football Club entered into a strategic co-branding partnership, elevating the SHB brand alongside one of the world’s foremost football brands.
As SHB commemorated its 25th anniversary, the bank proudly received the Second-Class Labor Medal, awarded by the President for the second time.
By bringing the Premier League Cup to Vietnam, SHB provided Vietnamese fans with a rare opportunity to witness championship trophies firsthand, thereby contributing to the promotion of Vietnam’s image and its people to the global stage.
Signing a strategic c o o p e r a t i o n agreement with two major international financial institutions, the International Investment Bank (IIB) and the International Bank for Economic Cooperation (IBEC), significantly enhanced SHB’s reputation. This partnership not only unlocked development opportunities but also fostered bilateral trade cooperation between Eastern European countries and Vietnam.
SHB took pride in being recognized as the inaugural financial partner of Amazon Group, a leader in the global e-commerce sector. This partnership fulfilled the vision of empowering Vietnamese businesses to expand their reach globally, marking a significant milestone in SHB’s commitment to supporting local enterprises.
In its commitment to supporting Small and Medium Enterprises (SMEs), SHB took proactive steps. The Bank signed a comprehensive cooperation agreement to support member businesses of VINASME, facilitating their growth. Additionally, SHB inked an on-lending framework contract with the Small and Medium Enterprise Development Fund (SMEDF), providing crucial support to innovative startups and SMEs engaged in value chains. These initiatives have been consistently upheld and further promoted in subsequent years.
Increased the charter capital to VND 26,674 billion and affirmed its robust financial capacity.
SHB relocated its stock trading from the Hanoi Stock Exchange (HNX) to the Ho Chi Minh City Stock Exchange (HOSE) to better serve the needs of foreign investors. Moreover, the bank’s emphasis on transparent management practices, in accordance with both domestic and international standards, reinforces its commitment to integrity and accountability.
To enhance the quality of its financial capital, SHB strategically opted to divest 100% of its capital at SHBFinance through an agreement with Krungsri Bank - Thailand, a member of the MUFG group. This move would allow SHB to bolster its capital surplus while minimizing exposure to significant financial risks and optimizing its financial portfolio.
SHB selected BCG, renowned as one of the world’s top three strategic consulting firms, as its consulting vendor. This decision reflected SHB’s strategic intent to leverage BCG’s extensive expertise and experience to fine-tune its strategic direction and bolster its competitiveness within the market.
In alignment with the Government’s policy and global development trends, SHB, T&T Group, Vietnam Airlines, and VNR signed a comprehensive strategic cooperation agreement on August 12, 2022.
Continuing its strategy of strengthening partnerships with major corporations, SHB signed cooperation agreements with Vietnam Railway Corporation (VNR), Vietnam National Textile and Garment Group (VINATEX), Vietnam Expressway Corporation (VEC) and Vietnam Posts and Telecommunications Group (VNPT).
In this year, SHB increased its charter capital to VND 30,674 billion, maintaining its position among the Top 5 largest private joint stock commercial banks by charter capital.
SHB proudly celebrated its 30th anniversary and was honored to receive the Third-Class Labor Medal awarded by the President of the Socialist Republic of Vietnam.
SHB shares were selected for the VN30 index, which comprises the 30 largest and most liquid companies listed on HOSE. The Bank increased its charter capital to VND 36,194 billion, placing it among the Top 4 private joint stock commercial banks with the largest charter capital.
SHB once again affirmed its reputation by meeting IFC’s stringent standards, officially signing a senior loan agreement worth USD 120 million and joining IFC’s Global Trade Finance Program (GTFP) with an initial trade finance guarantee limit of USD 75 million.
Continuing to bolster its global standing, SHB forged a memorandum of understanding (MOU) with Busan Bank (BNK Financial Group of Korea), solidifying a partnership across all domains. Particularly focused on developing corporate customers, digital banking, and investment banking, this collaboration aims to drive socio-economic development between Vietnam and Korea.
Expanding its network, SHB added 5 new branches and 25 transaction offices, thereby increasing the total number of domestic and international transaction points to 571.
SHB continually innovates and tailors its financial products and services to meet the evolving needs of customers and market trends.
The bank’s core operations revolve around facilitating various financial transactions, including: Accepting short, medium, and long-term deposits from both individuals and organizations; Extending short, medium, and longterm loans to individuals and organizations; Facilitating foreign currency transactions and providing international trade finance services; Offering discounting services for commercial papers, bonds, and other valuable instruments; Factoring; Offering asset preservation services, including rental of cabinets and safes, ensuring the safekeeping of valuable assets; Bancassurance; Engaging in entrust lending and receiving entrusted lending transactions based on trust agreements; Granting credit by discounting other valuable paper transfer instruments, providing flexible financing options.
SHB consistently innovates and expands its business network to fully meet customer needs.
As of December 31, 2023, SHB continues its strategic expansion efforts, fostering its network to 571 transaction points across 50 provinces and major cities throughout Vietnam. These locations are strategically selected to serve regions with significant economic growth potential.
Internationally, SHB extends its presence to three Southeast Asian countries: Laos (Vientiane, Champasack, Savanakhet), Cambodia (Phnom Penh, Kampong Thom, Nehru), and Myanmar.
(For further information, please refer to the “Transaction office network” section on page 139)
4.3.1. Governance model:
SHB is dedicated to perfecting and innovating its organizational structure to ensure management is executed in a modern, streamlined, and efficient manner. This approach aligns with SHB’s medium and long-term development strategy.
4.3.2. The organizational structure
To optimize its structure and focus resources on business development, SHB has streamlined its organizational framework. The Bank has refined the functions and responsibilities of its Divisions, Departments, and Centers, ensuring they operate in a professional, effective, and thoroughly integrated manner.
SHB’s organizational and management structure comprises the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and the CEO, in accordance with Article 32.1 of the Law on Credit Institutions 2010 and the amended Law on Credit Institutions 2017.
The General Meeting of Shareholders is the highest authority of the Bank.
The Board of Directors is the highest governance body within the bank, consisting of members elected by the General Meeting of Shareholders.
The Board of Directors establishes various committees, departments, and business offices to carry out specific tasks and responsibilities as assigned. These include Human Resources Committee, Risk Management Committee, Strategy Committee, Board of Directors Office, Internal Security Department, Strategic Partnership Development Committee, Expert Panel.
SHB consists of subsidiaries and subsidiary banks. The Bank comprises units at the Head Office, branches, and transaction offices. The Head Office encompasses Divisions, Departments, Centers, and Offices directly reporting to the CEO.
| Company name | Address | Business lines | Paid-up capital | Contributed capital of SHB | Holding percentage |
|---|---|---|---|---|---|
| I. SUBSIDIARIES | |||||
| Domestic Subsidiaries | |||||
| SHB Asset Management Single-Member LLC (SHAMC) | 14th floor, 169 Nguyen Ngoc Vu, Cau Giay, Hanoi | Debt and asset management | VND 20 billion | VND 20 billion | 100% |
| Overseas Subsidiaries | |||||
| Saigon - Hanoi Laos Single-Member Limited Liability Bank (SHB Laos) | Lanexang Road, Hatsadytai, Chanthabuly District, Vientiane Capital, Lao People’s Democratic Republic | Finance, banking | VND 1,158 billion | VND 1,158 billion | 100% |
| Saigon - Hanoi Cambodia Limited Liability Bank (SHB Cambodia) | Building No. 107, Norodom Avenue, Boeng Rang Ward, Doun Penh District, Phnom Penh, Cambodia | Finance, banking | VND 1,749 billion | VND 1,749 billion | 100% |
| II. AFFILIATE COMPANIES | |||||
| SHB Finance Single-Member LLC (SHBFinance) | GELEX Building, 52 Le Dai Hanh Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi | Finance, banking | VND 1,000 billion | VND 500 billion | 50% |
In 2023, SHB celebrated its 30th anniversary, reinforcing its capabilities and solidifying its position through 10 notable events. With a renewed vigor, the Bank moves forward, embracing the ethos of “Soar to New Heights with Dragon’s Might”.
At its 30th Anniversary, SHB proudly received the Third-Class Labor Medal from the President of the Socialist Republic of Vietnam. Prior to this esteemed recognition, SHB was also honored by prestigious domestic and international organizations with several significant awards, including Best Trade Finance Bank in Vietnam, Best ESG Impact Bank in Vietnam, Best CSR Bank, and Best Companies to Work for in Asia.
This momentous occasion underscores SHB’s 30-year journey of growth and partnership with the nation, while also serving as a testament to the State’s acknowledgment of SHB’s positive contributions to the country’s socioeconomic development.
President Ho Chi Minh once emphasized that “Culture lights the nation’s path”. SHB views corporate culture as the brand’s “soul”, defining its identity and values. This approach attracts talent, enhances the brand, and supports sustainable growth. Developing SHB’s corporate culture around six core values is a top priority for the Board of Directors.
In 2023, SHB celebrated its 30th anniversary by promoting its six core values through “From Heart to Greater Heights” initiatives, including Innovation Day (Innoday), Sport Festival, Shine, Icon, and more. These events highlighted the bank’s orange brand, instilling pride and fostering human values within staff, and extending this ethos to customers and the community.
SHB As of December 31, 2023, Total assets reached VND 630 trillion; Total customer deposits amounted to VND 497 trillion; Regulatory capital under Basel II reached VND 70 trillion; SHB’s outstanding loans reached VND 456 trillion, marking a notable yearon- year increase of 16.9%. The bank has prioritized lending in key sectors aligned with the government and SBV policies, focusing on areas that drive economic growth and development.
Total operating income reached VND 21,328 billion, reflecting a substantial 10.3% increase compared to 2022. Pre-tax profit amounted to VND 9,239 billion. Business performance remains stable, with SHB’s ROE, NIM, and other key performance indicators showing positive growth trends. Particularly noteworthy is the CIR index, which reached 23.7%, consistently ranking SHB as the leader among banks with the most effective cost control for multiple consecutive quarters. Moreover, increased provisions compared to 2022 have enabled SHB to further enhance its Loan Loss Reserve to 75%.
SHB’s business achievements are paralleled by the stringent risk management. The bank’s prudent risk management indicators consistently surpass the State Bank’s regulations, ensuring compliance with Basel II and Basel III standards in liquidity risk management.
In particular, SHB’s digital transformation efforts, guided by clear strategies, have yielded positive outcomes, contributing to robust growth in both customer base and transactions. Presently, 90% of key banking operations at SHB can be seamlessly executed through digital channels, surpassing the target set forth in the Banking Industry’s Digital Transformation Plan for 2028. Moreover, a significant portion - 90% of corporate and individual customer transactions are conducted entirely via Mobile banking and Internet banking digital channels, highlighting the widespread success of SHB’s digital initiatives
In 2023, SHB expanded its network with the addition of 5 new branches in Ben Tre, Quang Tri, Quang Binh, Bac Giang, and Phu Tho, along with 25 transaction offices nationwide. This brings the total number of domestic and international transaction offices to 571.
SHB’s extensive network has been instrumental in promptly addressing the financial transaction requirements of all customers, fostering connectivity across economic sectors, generating employment opportunities, and contributing to the socio-economic development of various provinces, particularly in mountainous and rural areas. Additionally, SHB directly contributes to the state budget in these localities.
On August 8, 2023, the State Securities Commission of Vietnam issued document No. 5247/UBCK-QLCB, confirming SHB’s issuance of over 552 million stock dividends in 2022. Consequently, SHB’s charter capital has surged to nearly VND 36,194 billion.
The ongoing augmentation of charter capital in recent periods has underscored SHB’s financial resilience and governance proficiency, bolstering the bank’s competitiveness in the realm of international integration. Moreover, this trajectory is poised to actualize anticipated benefits for shareholders.
On May 23, 2023, SHB and Ayudhya Public Bank Limited (Krungsri) of Thailand, a strategic member of the MUFG Group in Japan, finalized the transfer of 50% of the charter capital at Saigon - Hanoi Commercial Joint Stock Bank Finance Singlemember LLC (SHBFinance). As per the agreement, the remaining 50% will be transferred after 3 years.
Additionally, SHBFinance will be converted from Saigon - Hanoi Commercial Joint Stock Bank Finance Single-member LLC to Saigon - Hanoi Commercial Joint Stock Bank Finance LLC, pursuant to the new Decision and License of the SBV issued on April 25.
This transaction is expected to generate substantial surplus for SHB shareholders, providing additional resources for the Bank to fortify its financial capacity, thus facilitating business activities in key segments. Notably, SHB will continue to prioritize investments in the digital transformation process and unlock numerous regional business opportunities.
On July 17, Ho Chi Minh City Stock Exchange (HOSE) selected SHB shares for inclusion in the prestigious VN30 index basket. This decision, set to take effect from August 7, 2023, through February 2, 2024, marks a pivotal moment for SHB.
The selection process rigorously assessed various criteria including capitalization, free-float ratio, liquidity, and other critical factors.
Inclusion in the VN30 index serves as a benchmark, validating the quality and prominence of SHB shares. This significant milestone coincides with SHB’s robust and comprehensive transformation, garnering praise from various international organizations.
On April 19, 2023, the international credit rating agency Moody’s Investors Service (Moody’s) reaffirmed the B1 credit rating for SHB during its latest review, despite the global market experiencing significant fluctuations and challenges throughout 2022 and early 2023. Specifically, Moody’s upheld the B1 rating in the issuer category and for long-term local currency deposits for SHB, along with several other ratings.
This decision to maintain SHB’s B1 and B2 Baseline Credit Assessment (BCA) ratings reflects Moody’s expectation that SHB’s credit will remain stable over the next 12 to 18 months.
Amidst the tumultuous landscape of both domestic and international markets, SHB steadfastly prioritizes the welfare and sustainable progress of the nation and its communities. Anchored by the resolute commitment to social responsibility, SHB imbues every endeavor with this guiding principle. As a trailblazing bank, it proactively aligns with governmental and SBV policies, standing shoulder to shoulder with businesses and individuals even during the most challenging times.
SHB has rolled out numerous preferential lending programs, amounting to tens of trillions of VND, catering to both new and existing customers through interest rate reductions. The cumulative interest reduction for customers has exceeded VND 2,800 billion. In addition to these financial initiatives, the Bank promptly and continuously implements various non-financial policies to aid businesses in recovery phase.
Beyond its focus on business support, SHB actively extends its philanthropic endeavors nationwide. It effectively executes social security policies, extends care to veterans and their families, vulnerable individuals, impoverished households, victims of natural disasters and epidemics, as well as residents in remote, border, island, ethnic minority, and mountainous regions. Furthermore, it extends support to workers and laborers in industrial parks, export processing zones, and industrial clusters, allocating budgets amounting to tens of billions of VND for these initiatives.
SHB and the International Finance Corporation (IFC), a member of the World Bank Group, signed a 3-year senior loan agreement worth USD 120 million. Additionally, SHB entered into an agreement to participate in IFC’s Global Trade Finance Program (GTFP), where SHB will act as an issuing bank with an initial trade finance guarantee limit of up to USD 75 million provided by IFC. Alongside IFC, SHB collaborates with several development financial institutions, including the World Bank (WB), the Asian Development Bank (ADB), and KfW, to execute billion-dollar projects.
At the same time, SHB signed a Memorandum of Understanding (MOU) with Busan Bank, a member of BNK Financial Group of Korea, officially establishing a partnership between the two credit institutions. This collaboration focuses on various areas, particularly the development of corporate customers, digital banking, and investment banking.
The support of numerous international financial institutions has further affirmed SHB’s reputation and capacity in the global financial market. This collaboration underscores SHB’s strategy of prudent, effective, and robust business growth. By building a solid foundation, SHB ensures stable and sustainable development, fully meeting prudential standards and adhering to international norms.
The year 2023 is a particularly memorable milestone in SHB’s development journey, marking significant progress and concluding the series of events celebrating its 30th anniversary.
With relentless dedication, SHB garners acclaim from both governmental bodies and esteemed domestic and international organizations. In 2023, SHB solidifies and enhances its standing across numerous significant rankings, proudly earning accolades in various prestigious award categories.
PRIVATE COMMERCIAL BANKS IN TERMS OF CHARTER CAPITAL
PRESTIGIOUS PRIVATE COMMERCIAL BANKS
SHB SHARES SELECTED INTO VN30 INDEX
OUTSTANDING ENTERPRISES
ASEAN BANKS
ASIA PACIFIC BANKS
MOST GLOBAL VALUABLE BANKING BRANDS
WORLD BANKS
“SHB is strategically positioned to address the challenges and capitalize on the opportunities inherent in its comprehensive transformation strategy, aiming for exceptional growth. In 2024, SHB will reinforce its core business sectors, systematically enhance its products and services to maximize customer satisfaction, and implement development initiatives anchored in the principles of Safety, Efficiency, and Sustainability”.
Ms. Ngo Thu Ha - CEO
SHB has served as a pivotal financial institution, furnishing vital capital resources to essential sectors of the Vietnamese economy. Marking three decades of distinguished success, SHB embarks on a new era with renewed strength and strategic vision. The Bank aims to become The most efficient bank; The premier provider of financial services to strategic corporate customers with a green supply chain and ecosystem; The preferred digital bank, and The leading retail bank.
To achieve this objective, SHB’s Board of Directors devises adaptable, innovative, and distinct strategies for each stage. Drawing from lessons learned and building upon past successes, we shall further inherit and promote effective practices. Additionally, the BOD collaborates with partners and leading consulting firms while onboarding top domestic and international personnel to support SHB’s plans, overseeing the implementation of the Bank’s strategy.
2024 is expected to remain a challenging year for the Vietnamese economy in general and the banking system in particular. However, by turning challenges into opportunities, SHB leverages its rich heritage and strong financial capacity to drive a robust and comprehensive transformation. This includes enhancing customer ecosystems and value chains to realize the great aspirations, affirming and building upon past achievements. Through these efforts, SHB aims to deliver greater value to customers, shareholders, and communities, thereby fostering national prosperity and development.
Medium and long-term goals
The most efficient bank
The preferred digital bank
The leading retail bank
The premier provider of financial services to strategic corporate customers with a green supply chain and ecosystem
TOTAL ASSETS TO
INCREASE BY
~11%
TOTAL OUTSTANDING LOANS TO
GROW BY
~14%
PRE-TAX PROFIT TO
ADVANCE BY
~22%
Drawing from extensive evaluations and research on the macro-environmental foundation, and in collaboration with leading global strategic consulting firms, SHB has adhered closely to its priority strategies. The bank has developed a long-term, direction-oriented strategy aimed at differentiation, with a market and customer-centric focus.
SHB remains committed to the following four foundational pillars:
“My mission is to drive transformation, shift mindsets, and redefine working practices. By doing so, we empower ourselves as the next generation to build upon the legacy of the past 30 years and uphold SHB’s core values. Leveraging the digital revolution 4.0 and advancing toward revolution 5.0 through AI, we aim to position SHB as the most efficient and preferred digital bank in the region and Asia”.
Mr. Do Quang Vinh
Vice Chairman cum Deputy CEO
Over the past three decades, SHB has positioned itself as a leading joint stock commercial bank, achieving impressive growth in total assets and revenue. However, the past successes won’t guarantee similar growth in the next 5 to 10 years. The business environment is becoming increasingly competitive and interconnected. Business relationships are closely linked, as most companies now promote development through their customers’ ecosystems and value chains. By continuously expanding their customer base and providing tailored products and services, businesses not only satisfy anchor customers but also engage with ecosystem participants surrounding them.
SHB’s competitors have heavily invested in digital products and services, enhancing sophistication and hyper personalization in both retail and corporate banking. To bolster its position, improve competitiveness, and enhance business efficiency, SHB must urgently embark on a comprehensive transformation. This transformation should span innovation across customer segments, service delivery, institutional practices, policies, processes, organizational culture, human resources, financial management, and risk management. Information technology will play a pivotal role in driving the speed of SHB’s transformation.
Leading the transformation process with a customer and market-centric focus emphasizes strategic relationships with customers and integrating banking services into their ecosystems. These partnerships are crucial, enabling SHB not only to provide support but also to actively contribute to business expansion and strengthen networks between commercial entities and their customers, thereby driving SHB’s customer development and business growth.
SHB’s strategic goals for 2024 - 2028:
By 2028, SHB will become The most efficient bank; The premier provider of financial services to strategic corporate customers with a green supply chain and ecosystem; The preferred digital bank, and The leading retail bank.
To accomplish the stated goals, SHB’s transformation strategy involves implementing the following initiatives:
Cultivating and expanding relationships with key customers, including large corporations, their ecosystem participants, and value chain actors. By establishing robust transaction banking and employee banking services, SHB aims to attract and compete in the employee banking segment, offering relevant products and services such as salary payments. This strategic approach drives exponential growth in retail banking and SME customer segments.
SHB aims to enhance its business by enabling customers to select banking products and services tailored to their individual needs. This goal can be realized through the development of self-service channels and leveraging a modern digital platform. Advanced data analytics capabilities, powered by a cutting-edge technology platform, will empower the sales force and business units to identify sales opportunities, manage the sales funnel, and improve overall sales performance.
The transformation will implement an Offer Management system based on customer value propositions (CVPs) and customer needs. This system will guide the development of product and service solutions, as well as the corresponding operational activities. This model will ensure SHB remains agile and responsive to changing market dynamics while delivering valuedriven and customer-centric solutions.
SHB will invest in advanced technology platforms, modern infrastructure, and integrated operational capabilities to support the implementation of the Bank’s strategic goals. This investment is crucial for gaining a competitive edge in the marketplace, providing superior customer experiences, and driving operational excellence.
Deploy a transformation strategy through three phases, built according to a specific roadmap, ensuring a comprehensive transformation from developing fundamental capabilities to becoming a fully-fledged cutting-edge bank:
| Phase 1 2024 – 2025 |
Phase 2 2026 – 2027 |
Phase 3 2028 |
|---|---|---|
| Establishing fundamental capabilities | Accelerating growth | Achieving breakthroughs in efficiency and sustainability |
SHB outlines a sustainable development strategy that encompasses not only the bank’s own secure and effective financial growth but also its commitment to environmental and environmental and social responsibilities.
Guarantee employee remuneration, provide learning opportunities, and foster career development. Maintain an open, transparent, and equitable recruitment policy.
SHB is dedicated to environmental protection through various initiatives aimed at reducing greenhouse gas emissions and office waste. The Bank emphasizes the responsible and economical use of natural resources, and aims to protect and enhance the quality of the living environment. One of SHB’s key strategies is the development of green finance, where projects are appraised based on stringent criteria that ensure compliance with both international and domestic environmental standards.
SHB implements social welfare activities aimed at improving health conditions, supporting vulnerable individuals, and enhancing education for the community. These efforts demonstrate the corporate social responsibility and the volunteerism of its employees. SHB considers these initiatives as a fundamental cultural value essential for its ongoing development.
In 2023, the global economy continues to face significant challenges. Geopolitical tensions and severe issues of energy and food security persist. Many countries have recorded lower-than-expected growth and unprecedented increases in public debt, while high inflation poses potential risks. The decline in global aggregate demand is directly impacting countries have extensive engagement in international trade and investment.
Despite global challenges, Vietnam has achieved positive results and garnered high praise from international organizations. The country’s GDP growth in the next quarter surpassed the previous quarter, reaching 5.05% for the whole year, exceeding USD 430 billion. Vietnam remains among the group of countries effectively controlling inflation, with the average Consumer Price Index (CPI) in 2023 rising by 3.25% compared to 2022, below the target of 4.5% set by the National Assembly. Core inflation increased by 4.16%.
Diverse forecasts regarding global economic growth in 2024 have emerged. The World Bank anticipates world economic growth this year to be around 2.9%, a decrease from last year’s growth rate of 3%. Inflation is still projected to hover around 5.8%. Geopolitical tensions may intensify, potentially leading to heightened complexities, including increases in oil prices and disruptions in supply chains. Major economies are expected to uphold stringent monetary policies and maintain high interest rates, which will persist in exerting pressure on countries worldwide. Amidst global economic instability, several organizations maintain an optimistic outlook on Vietnam’s economic growth. Fitch Ratings, a credit rating agency, forecasts that Vietnam’s economy will rise by 6.3% in 2024 and 7% in 2025. The Asian Development Bank’s Outlook (ADO) maintains a growth forecast of 6% for Vietnam in 2024. Similarly, the International Monetary Fund (IMF) predicts a growth rate of 5.8% for Vietnam in the same year.
In Resolution No. 103/2023/QH15, adopted during Session 6 of the 15th National Assembly, the 2024 Socio-Economic Development Plan was outlined. The resolution sets ambitious targets, including a GDP growth target ranging from 6% to 6.5%. Additionally, the average CPI growth rate is projected to range between 4% and 4.5%. The plan emphasizes three key pillars of growth: exports, investment, and domestic consumption.
FDI is poised to remain a cornerstone and driving force for Vietnam’s economy in 2024 and beyond. Vietnam stands out among ASEAN nations for attracting substantial FDI inflows, solidifying its position as a rising star in the global supply chain.
State policies exert a significant influence on the financial market and the growth of businesses and key economic sectors. These policies entail various measures, including enabling interest rate reductions, implementing solutions to support bond markets, guiding policies to stabilize markets, and facilitating favorable loan conditions for businesses and priority sectors in accordance with state directives. Priority sectors encompass manufacturing and processing, agriculture, forestry, seafood, green energy, high-tech agriculture, and clean agriculture.
(1) Extension of Circular 01 on Debt Restructuring, Interest Exemption, and Reduction until June 30, 2022;
(2) 2% Interest Rate Reduction Program According to Decree 31;
(3) Directive to Credit Institutions to Reduce Costs and Balance Funds to Continue Interest Rate Reduction to Support Businesses;
(4) Amendment of Circular 22 on Changing the LDR Ratio Calculation to Reduce Interest Rate and Liquidity Pressure through Circular 26, effective early 2023;
(5) Issuance of Circular 02/2023/TT-NHNN by the SBV at the end of April 2023;
(6) Passage of the Amended Law on Credit Institutions by the National Assembly on January 18, 2024;
(7) Implementation of Circular No. 06/2023/TT-NHNN;
(8) Support Policies, Investment Stimulus Packages, and Financial Relief Measures, including Extension of the Government’s 2% VAT Reduction Period;
(9) Government Support Policy through Decree 08/2023/ ND-CP and Decree No. 10/2023/ND-CP Amending and Supplementing a Number of Articles of Decrees Guiding the Implementation of the Land Law;
(10) Implementation of Decision 2345/QD-NHNN
Experts anticipate that credit growth in 2024 could range from 13% to 14%, aligning with the projected annual GDP growth of 6% to 6.5%. Notably, retail loans, including consumer loans, home loans, and auto loans, are expected to experience robust stimulation in a low-interest-rate environment.
