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Banking & Finance

SHB to increase charter capital

Released at: 12:36, 17/06/2016

SHB to increase charter capital

Photo: Duc Anh

SBV approval comes for increase, with the bank targeting a further increase this year.

by Hung Nguyen

The Saigon - Hanoi Commercial Joint Stock Bank (SHB) has gained approval from the State Bank of Vietnam to increase its charter capital from VND8.8 trillion ($394.59 million) to VND9.48 trillion (425.08 million).

The bank has set a target of increasing its charter capital this year to VND11.19 trillion ($501.75 million), an increase of 18 per cent against 2015. Other targets include total assets of VND232.03 trillion ($10.4 billion), customer deposits of VND188.8 trillion ($8.46 billion), customer loans of VND157.74 trillion ($7.07 billion), pre-tax profit of VND1.35 trillion ($60.53 million), and a dividend of 8.5 per cent, with non-performing loans to be managed at less than 3 per cent.

SHB has been particularly exposed to the problems besetting the Hoang Anh Gia Lai Group (HAGL), with 6 per cent of its loan exposure being to the Group.

Among the ten banks rated by Moody’s, SHB has the highest loan exposure to the agriculture sector, at 20.5 per cent of its loans. According to Moody’s, “Lower commodity prices and the ongoing drought in Vietnam have weakened the debt repayment ability of firms such as HAGL. This may lead to further deterioration in asset quality metrics for banks with large exposures to agriculture and commodities.”  

VET unsuccessfully sought comment from SHB.

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