With the unwavering resolve and mighty power of the Dragon, SHB is steadfast in its comprehensive transformation goals. Through wholehearted dedication and united efforts at multiple levels, SHB is forging an unlimited realm of innovation, striving towards its transformation objectives for 2024-2028.
In 2023, SHB maintains its standing as a prominent bank in Vietnam, accomplishing significant milestones and objectives
Despite economic challenges, the Bank’s total assets have shown robust growth. Regulatory capital under Basel II standards reached VND 70,268 billion, with Owners’ Equity reaching VND 50,098 billion, marking a 16.8% increase compared to 2022. This abundant, long-term customer deposit serves as a crucial enabler for SHB to extend loans to various key sectors of the economy in line with the Government and SBV’s directives.
The Bank continues to invest in and expand its network and personnel, with the establishment of numerous new branches both domestically and internationally. This expansion brings the total number of transaction offices to 571 across domestic and international locations, including subsidiary bank with full capital ownership, two branches located in Laos, another subsidiary fully owned, and four branches operating in Cambodia. Additionally, SHB operates a representative office in Myanmar, along with 1 subsidiary (SHB AMC) and 1 affiliate company (SHBFinance). With a workforce exceeding 6,246 employees and a presence spanning 50 provinces and cities nationwide and abroad, SHB caters to over 5 million retail and business customers, while maintaining connections with 500 correspondent banks worldwide.
SHB has been gradually broadening its income sources, reducing its dependence on interest income. Concurrently, the Bank is expanding its operations and income while also diligently controlling costs to improve operational efficiency.
The capital adequacy ratio under Basel II reached 12.20% (SBV regulations require ≥8%). The outstanding debt-to-deposit ratio was 77.58% (SBV’s limit is ≤85%). The ratio of short-term funding for medium and longterm loans stood at 26.07% (SBV’s limit is ≤34%).
Since the beginning of 2023, SHB has started applying Basel III standards in liquidity risk management. Simultaneously, SHB is implementing Basel II using the advanced Internal Ratings-Based (IRB) approach, which will enable the Bank to optimize capital costs and enhance risk management and financial capacity. This foundation supports the bank’s ongoing development of a sustainable and comprehensive business strategy, providing a framework for effective risk management and capital utilization.
Additionally, SHB received a B1 rating from Moody’s last year, with a positive outlook.
With these achievements, SHB is now among Top 5 largest private joint stock commercial banks in Vietnam
2023
Total assets reached
630.501 VND billion
Increased by 16 %
Achieved
104% of the plan
Charter capital amounted to
36.194 VND billion
(Source: Audited consolidated financial statements of 2023)
| No. | Full name | Title | Shareholding percentage |
|---|---|---|---|
| 1 | Ms. Ngo Thu Ha | CEO | 0.0728% |
| 2 | Mr. Nguyen Huy Tai | Deputy CEO | 0% |
| 3 | Mr. Le Dang Khoa | Deputy CEO | 0% |
| 4 | Ms. Ninh Thi Lan Phuong | Deputy CEO | 0.0036% |
| 5 | Ms. Hoang Thi Mai Thao | Deputy CEO | 0% |
| 6 | Mr. Do Duc Hai | Deputy CEO | 0.00001% |
| 7 | Mr. Do Quang Vinh | Deputy CEO | 0.0260% |
| 8 | Mr. Luu Danh Duc | Deputy CEO | 0% |
| 9 | Ms. Ngo Thi Van | Chief accountant | 0.00002% |
Summary of the Board of Management’s Profiles, refer to pages 20-22
| No. | Full name | Title | Change |
|---|---|---|---|
| 1 | Ngo Thu Ha | Member of BOD cum CEO | Elected to SHB’s Board of Directors |
| 2 | Do Quang Vinh | Vice Chairman cum Deputy CEO | Continue to be elected to SHB's Board of Directors |
| 3 | Do Duc Hai | Vice Chairman cum Deputy CEO | Elected to SHB's Board of Directors |
| 4 | Tran Xuan Huy | Deputy CEO phụ trách khu vực miền Nam | Resigned |
| No. | Full name | Title |
|---|---|---|
| 1 | Nguyen Dinh Duong | Chief Internal Auditor |
| 2 | Dang Cong Hoan | Chief Retail Banking Officer |
| 3 | Dinh Ngoc Dung | Deputy Chief Corporate Banking Officer |
| 4 | Luu Tien Cuong | Chief Risk Officer |
| 5 | Nguyen Thanh Loan | Deputy Chief Human Resource Officer |
| 6 | Vu Tuan Anh | Chief Credit Officer |
| 7 | Cao Minh Tuan | Chief Debt Collection Officer |
| 8 | Dong Xuan Hoa | Deputy Chief Marketing Officer |
Summary of the Board of Management’s Profiles, refer to pages 23-25
As of December 31, 2023, the total number of employees at the Bank and its subsidiaries is 6,246, with 80% holding Bachelor or postgraduate degrees.
6,246 employees
80 %holding Bachelor or postgraduate degrees
To develop a skilled, experienced, and qualified workforce that meets the demands of a modern bank and is committed to its growth, SHB consistently introduces policies designed to attract, motivate, and encourage longterm employee engagement.
SHB upholds transparency by clearly outlining the evaluation criteria for candidates’ qualifications, skills, and ethics based on professional standards.
The Bank prioritizes selecting personnel with high levels of expertise, health, and ethics, utilizing an online recruitment website, internal newsletters, and social media to ensure a professional, transparent, and fair recruitment process, thereby enhancing SHB’s reputation in the labor market.
In 2023, SHB’s training programs will undergo significant changes, focusing on designing and implementing programs aligned with the roles and responsibilities of key positions. Key training initiatives will include: Management Capability Improvement (SHB Talent Lead Leadership, Foundational Management Skills, Sales and Sales Management Skills); Customer Service and Underwriting (Improving Customer Service Quality, Underwriting skill and Soft Skills Development). In addition to these highly customized training programs, SHB will continue to offer hundreds of internal and external training courses. To enhance efficiency and reduce costs, SHB will leverage high-tech applications for training delivery, including: Online Learning Management System (SHB – LMS): A platform for delivering and managing online training courses and exams; Survey System - Quality Assessment (SHB - Survey): A system for surveying and assessing the quality of online courses; Learning Exchange Forum: An online forum for knowledge sharing and learning exchange among employees; Videoconference Training: Utilizing MS Teams, Zoom, etc.
SHB regards human resources as its most valuable asset, positioning people at the heart of its growth strategy. We implement personalized training and HR development policies that align with the needs and potential of our employees, thereby supporting the bank’s overall strategic direction.
SHB’s salary, compensation, and welfare policies are designed to be competitive, with the goal of providing a stable source of income. These policies ensure that employees feel secure and motivated to work at the Bank.
For further detail on HR policy and related changes, see page 121.
On May 23, 2023, SHB successfully completed the transfer of 50% of the capital in Saigon - Hanoi Commercial Joint Stock Bank Finance Company Limited (SHBFinance) to Ayudhya Public Bank Limited (Krungsri) of Thailand. Krungsri is a strategic member of the MUFG Group in Japan. According to the signed agreement, the two parties will proceed with transferring the remaining 50% of the charter capital after a period of 3 years. As a result of this transaction, SHBFinance officially transformed from a Single-member Limited Liability Company into Saigon - Hanoi Commercial Joint Stock Bank Finance Limited Liability Company.
The Industrial Revolution 4.0 and digital transformation have become mandatory requirements and strategic imperatives across all sectors, especially in the banking industry. Over the past few years, the world has witnessed the rapid expansion and growth of digital banking trends. The outbreak of the Covid-19 pandemic in early 2020 further underscored the critical need for digital solutions in banking, making their adoption more essential than ever.
In 2023, SHB dedicated substantial resources to launch its latest Omnichannel platform - SHB SAHA to optimize seamless customer experiences across all channels, spanning from the Mobile App to Internet Banking and in-person transactions. It boasts comprehensive utilities, stable operations, secure transactions, and integrates an intuitive design.
SHB has recently introduced payment features on its digital platforms for Corporate Banking. As a result, transaction rates have significantly increased from 26% to 46% compared to the same period last year. The number of corporate customers utilizing e-banking services has also surged, growing from nearly 2,800 to over 15,000. These improvements are attributed to enhanced user experiences, reduced transaction times, and the convenience of online cash management. Notable enhancements include online pre-approved overdrafts, Slink virtual accounts and automated debits for medical and tuition fees.
The user-friendly features of both the old and new applications have resulted in business units saving time equivalent to the workload of more than 293 employees across Retail Banking and Corporate Banking Divisions.
Through the Omnichannel project for Retail Banking, a multitude of features have been developed across all three channels of SHB SAHA - Mobile Apps, Online Banking, and Branches - within a mere 16 months (from September 2022 to December 2023). Simultaneously, the migration of customers to the new application has been underway, with continuous testing and upgrades of features and performance to ensure stability and smoothness. The ultimate goal is to migrate all customers to the new application by 2024.
Building on the Digital Transformation initiatives already in motion, SHB will further advance its offerings on e-Banking in 2024, extending beyond retail customers to include corporate clientele. For Retail Banking, SHB pledges to deliver “Peace of mind in every transaction” through the Omni Channel, boasting comprehensive utilities and prioritizing top-notch security. As for Corporate Banking, 2024 marks a year of expansion in customer base, transaction volume, and transaction value to enhance user experience on the digital platform. Additionally, SHB plans to upgrade the e-Banking system for Corporate Banking to accommodate even more remarkable growth in the future.
SHB pledges to deliver “Peace of mind in every transaction” through the Omni Channel, boasting comprehensive utilities and prioritizing top-notch security.
To achieve the objectives of SHB’s digital transformation strategy, business plan, and market positioning, the Bank executed several critical digital IT projects in 2023. These initiatives aimed to digitize customer journeys and enhance overall customer experiences.
Has selected Intellect as the vendor for upgrading the core banking system. Anticipated to be completed in the first quarter of 2025, this project aims to achieve the following objectives:
In 2023, SHB deployed to transform SHB’s retail lending processes. This is one of SHB’s key projects that will contribute to improving and changing SHB’s credit granting method by providing streamlined and optimal credit products and applying professional solutions. By implementing professional solutions, the RLOS will enable faster and more accurate calculations, evaluations, and loan decisions. The BOD expects that this successful implementation of the RLOS is expected to improve the overall experience for both customers and bank staff. It will contribute to better credit quality by enhancing risk mitigation and fraud detection. SHB aims to shorten the loan processing time by at least 20% compared to the current process.
Aims to enhance operational quality, elevate the card customer experience, improve service quality, and enhance business reporting. Here are some of the main project goals:
SHB is dedicated to ensuring a secure and efficient experience throughout the customer journey across all interactions with our products and services.
Aims to enhance and align the customer experience across digital channels. The website will prioritize providing financial solutions that best meet the actual needs of customers. Every interaction on the website will be personalized. By understanding user preferences and behavior, the website can tailor content, recommendations, and services to individual users. The project utilizes an optimal website management platform from international partners. The website will incorporate outstanding features to enhance usability, navigation, and overall user satisfaction.
Is designed to enhance the experience and quality of human resources services for employees. It aims to meet the flexibility of human resource management models and management requirements by centralizing personnel data control and fully automating processes. The project also seeks to standardize business processes within the HR department, ensuring easy integration and data synchronization with other human resources software such as Recruitment websites and Online training software. Additionally, it aims to integrate seamlessly with other software used across different divisions within the organization, including business management software, accounting systems, and information technology platforms.
Involves implementing a capital transfer system that enables SHB to determine the differences earned on assets and debts, as well as the difference earned from interest rates for each customer.
Furthermore, in 2023, SHB initiated projects aimed at bolstering the bank’s core information technology infrastructure. These endeavors involved upgrading the ESB and migrating to the Oracle ExaData X9 system. Additionally, SHB commenced the construction of comprehensive data centers and redundant data centers to ensure high availability and disaster recovery capabilities, aligning with the Bank’s IT strategy to streamline solution deployment.
SHB Asset Management Single-Member LLC (SHAMC)
Total assets
62
SHB Asset Management Single-Member LLC (SHB AMC) was established under Decision No. 508/2009/QD-NHNN, dated March 11, 2009, and commenced operations on December 5, 2009. Over the past 14 years, the company has significantly contributed to supporting SHB in debt management and executing prudent and effective asset management for both the bank and its clientele. SHB AMC remains dedicated to its core activities, which include asset acquisition, sales, management, and optimization, as well as debt settlement and security services, all aimed at bolstering SHB’s operational endeavors. Besides catering to SHB’s requirements in debt management and asset handling, SHB AMC extends its services to other financial institutions, providing assistance in managing assets and resolving outstanding debts in compliance with government regulations and legal frameworks.
Over the past 14 years, SHB AMC has experienced a significant surge in its total assets, growing from VND 28 billion as of December 31, 2009, to VND 62 billion as of December 31, 2023. This substantial increase underscores the company’s expansion and growing influence in the market.
In 2023, SHB Asset Management Single- Member LLC (SHB AMC) achieved noteworthy milestones and results. These include: Fulfilling 100% of the security requirements across SHB’s business locations nationwide, demonstrating the company’s commitment to ensuring the security of SHB’s operations; Expanding the total number of business locations where security measures were implemented to 290 offices by December 31, 2023. This expansion comprised 64 branch headquarters and 226 transaction offices spread nationwide; Achieving a 100% success rate in meeting security objectives; Managing 15 warehouses and 5 forfeited collateral assets throughout the country; Successfully meeting 100% of the warehouse needs as requested by SHB units.
Looking ahead, SHB AMC aims to continue expanding its services to cater to the evolving security and warehousing requirements of SHB. As of December 31, 2023, SHB AMC employed a total of 357 people, achieved a total net income of VND 104.8 billion and a pre-tax profit of VND 12.4 billion.
Saigon - Hanoi Laos Single-member Limited Liability Bank (SHB Lào)
Total assets
3.573
The Single-Member Limited Liability bank in Laos, with 100% capital, was established with a charter capital of USD 50 million, transforming from the SHB Laos Branch. From 2012 to 2015, SHB Laos operated as a branch of SHB in Laos. On December 18, 2015, under license No. 41 from the State Bank of Laos, the SHB Laos Branch was licensed to become a single-member limited liability bank in Laos, functioning as a subsidiary bank of SHB. The headquarters officially opened in the capital, Vientiane, on January 15, 2016, marking a significant expansion in SHB Laos’s operational scale.
SHB Laos operates as an independent legal entity with its own organizational structure and includes two branches, one in Champasak province and another in Savannakhet province. It offers a range of banking and financial services and products, diversifying business portfolios, mitigating risks, and conducting business in accordance with the law, regulations, and authorization from the parent bank in Vietnam. The establishment of SHB Laos presents numerous opportunities for SHB to capitalize on the vast and promising potential of the Laos market, attract investment, and enhance SHB’s reputation and position in the market. This development supports SHB’s international vision and brand, while also contributing to the friendly relations between Vietnam and Laos.
Over 12 years of operation and six years since transitioning from SHB Laos Branch to a Limited Liability Bank in Laos (2016), SHB Laos has experienced positive and promising developments in its investment and business activities within the region.
By December 31, 2023, SHB Laos had two transaction points, including one headquarters and two branches, with a total of 76 employees. Total assets reached VND 3,573 billion, with total outstanding loans reaching VND 2,040 billion. The pretax profit for the year was VND 54 billion.
Saigon - Hanoi Cambodia Limited Liability Bank (SHB Cambodia)
Total assets
13.122
With a charter capital of USD 75 million, SHB Cambodia is the second fullyowned subsidiary bank of SHB in the Indochina market, following SHB Laos. SHB Cambodia operates independently with its own organizational structure, having transitioned from an SHB Cambodia branch.
Over 12 years of operation, SHB Cambodia has built a diverse customer base that includes Vietnamese businesses in Cambodia as well as local enterprises. The bank focuses primarily on key economic sectors such as rubber, electricity, infrastructure, and mineral exploitation. Looking ahead, SHB Cambodia plans to pursue comprehensive development to fully realize its potential and offer a complete range of products and services to its customers. In 2023, despite global economic and political challenges, SHB Cambodia achieved significant business growth. The bank reported increases in total outstanding loans, total customer deposit, and pre-tax profits compared to 2022.
As of December 31, 2023, SHB Cambodia operates five transaction points, comprising one headquarters and four branches, with a total of 60 employees. The bank’s total assets reached VND 13,122 billion, with total customer deposits amounting to VND 2,464 billion and total outstanding loans reaching VND 11,723 billion. The pre-tax profit was VND 284 billion.
SHB Finance LLC (SHBFinance)
Total assets
8.320
Saigon-Hanoi Commercial Joint Stock Bank Finance Limited Liability Company (SHBFinance) was established on December 12, 2016, through the merger of Vinaconex - Viettel Joint Stock Finance Company (VVF) into SHB. SHBFinance has a charter capital of VND 1,000 billion, with SHB owning 50% and Ayudhya Public Bank Limited (Krungsri) of Thailand owning the remaining 50%.
In 2023, SHB completed the transfer of 50% of capital in SHBFinance to Ayudhya Public Bank Limited (Krungsri), a strategic member of the MUFG Group from Japan. This transfer provided SHBFinance with new and comprehensive momentum to accelerate the implementation of medium and long-term plans according to international standards. It also aligned with the strategy of developing a financial company with leading strengths in technology and digitalization in Vietnam.
SHBFinance is committed to the vision of “Becoming a smart and trustworthy finance company for Vietnamese”.
To become a comprehensive touchpoint for all customer needs in the digital space, SHBFinance continuously enhances its applications, websites, and social network channels. Improvements are made in interface design, features, and service speed to provide a better customer experience. Loan can be disbursed within 15 minutes via SHBFinance application. Additionally, SHBFinance is one of the first financial companies to implement an AI Chatbot for customer service. SHBFinance diversifies payment methods, offering both traditional and online channels, including Viettel stores, VNPost, e-wallets such as MoMo, Payoo, ZaloPay, and the SHBFinance mobile application.
These efforts make payments easier and simpler for customers, significantly increasing the debt repayment rate despite the industry’s trend of decreasing loan rates. In 2023, the economy experienced a strong recovery, with some industries achieving higher growth rates than in previous periods.
Key financial indicators
| Key financial indicators | Unit | In 2023 | In 2022 | YoY growth rate |
|---|---|---|---|---|
| 1. Equity | ||||
| Total assets | VND billion | 630,501 | 542,428 | 16.2% |
| Charter capital | VND billion | 36,194 | 30,674 | 18.0% |
| Regulatory capital | VND billion | 70,268 | 62,722 | 12.0% |
| 2. Business performance | ||||
| Total customer deposit | VND billion | 497,417 | 407,134 | 22.2% |
| Total outstanding loan (*) | VND billion | 455,718 | 398,819 | 14.3% |
| Total operating income | VND billion | 63,038 | 45,556 | 32.6% |
| Pre-tax profit | VND billion | 9,239 | 9,689 | -4.6% |
| 3. Prudential ratio | ||||
| Capital adequacy ratio | % | 12.20 | 12.22 | Satisfy SBV regulatory threshold under Basel II (≥ 8%) |
| Non-performing loan ratio | % | 2.70 | 2.49 | Satisfy SBV regulatory threshold (≤ 3%) |
| Overdue loan ratio | % | 4.36 | 4.02 | Satisfy SBV regulatory threshold (≤ 5%) |
| 4. Liquidity | ||||
| Loan-to-Deposit Ratio (LDR) | % | 77.58 | 77.83 | Satisfy SBV regulatory threshold (≤ 85%) |
| Ratio of short-term funding for medium and long-term loans | % | 26.07 | 27.60 | Satisfy SBV regulatory threshold (≤ 30%) |
| Liquidity ratio | % | 19.66 | 15.79 | Satisfy SBV regulatory threshold (≥ 10%) |
(Source: Audited consolidated financial statements of 2023)
(*) Total outstanding loan shall adhere to the credit growth limit set and approved by the SBV
Total shares
3.619.398.113
(Shares)
NUMBER OF OUTSTANDING
3.618.901.927
(Shares)
NUMBER OF RESTRICTED SHARES
116.901.927
(Shares)
NUMBER OF UNRESTRICTED
3.501.964.320
(Shares)
| Type of shareholder | Total number of shareholders | Share ownership percentage | Chart |
|---|---|---|---|
| Major and minority shareholders |
(Major shareholders are those who hold more than 5% of the Bank’s shares. Minority shareholders are those who hold less than 5% of the Bank’s shares) |
||
| Major shareholders | 1 | 9.9986% | |
| Minority shareholders | 88,266 | 90.0014% | |
| Total: | 88,267 | 100% | |
| Individual and institutional shareholders |
|
||
| Institutional shareholders | 248 | 25.0210% | |
| Individual shareholders | 88,019 | 74.9790% | |
| Total: | 88,267 | 100% | |
| Domestic and foreign shareholders |
|
||
| Domestic shareholders | 87,748 | 95.0495% | |
| Foreign shareholders | 519 | 4.9505% | |
| Total: | 88,267 | 100% | |
| State-owned and other shareholders |
|
||
| State-owned shareholders | 8 | 0.938% | |
| Other shareholders | 88,259 | 99.062% | |
| Total: | 88,267 | 100% | |
Major and minority shareholders
(Major shareholders are those who hold more than 5% of the Bank’s shares. Minority shareholders are those who hold less than 5% of the Bank’s shares)
Individual and institutional shareholders
Domestic and foreign shareholders
State-owned and other shareholders
In 2023, SHB raised its charter capital from 30,673,832,000,000 VND to 36,193,981,000,000 VND by paying stock dividends from the year 2022.
SHB is presently issuing shares as part of its Employee Stock Option Program (ESOP), with the process anticipated to conclude in the first quarter of 2024.
(For further detail, see Sustainable Development section on page 120)
