SHB increases capital to enhance strong financial capacity, meeting growth in the new era

SHB will seek written opinions from shareholders on the plan to increase charter capital in 2025, consolidate its position as the top private joint stock commercial bank in Vietnam, increase its capacity to meet credit growth needs, create conditions to expand business activities and invest in digitalization to increase customer experience, and enhance competitiveness in the new development stage.

Not onlySHB , but also many other banks are accelerating capital increase in many forms, the order in the charter capital ranking of banks is predicted to change when many capital increase plans are urgently implemented. In particular, SHB is currently in the Top 5 private banks with the largest charter capital scale, if the capital increase is successful, it is not excluded that this bank will be able to move up in the overall charter capital ranking.

Capital increase, the foundation for SHB to maintain growth

Banking business activities often grow at double-digit rates, mainly contributed by the core business: lending. However, in many periods, the credit growth rate at listed banks has exceeded the growth rate of equity. Experts agree that increasing charter capital is an inevitable trend of the Vietnamese banking system to improve financial capacity, enhance risk tolerance and meet capital safety requirements according to Basel III. SHB is no exception to this trend.

Looking back at SHB's first half of 2025 business results shows very impressive growth figures, in which outstanding loans reached nearly VND 595 billion, an increase of 14.4% with a diversified loan portfolio in key sectors of the economy .

SHB’s outstanding loan growth, which has been sustained for at least the past 5 years, demonstrates a certain competitive advantage in its corporate client base – the main driver of credit growth in the entire industry. SHB provides comprehensive capital flows in the corporate ecosystem, helping to connect and support all stages in the value chain, from production, supply to services. Despite strong loan growth, SHB’s asset quality tends to be tightly managed and continuously improved.

SHB charter capital over the years

Accordingly, SHB's capital increase plan is completely understandable, it can help the bank expand its credit scale, increase income, and dilute the bad debt ratio.

Note that, while the banking industry's credit growth is usually slow at the beginning of the year, SHB is going against the trend - which will be the premise for better growth throughout the year. In other words, SHB's growth space still has a lot of room - especially when capital capacity is supplemented, with the main driving force being resonated from the determination to grow the economy, the monetary easing policy, promoting public investment, the private economy and the strengths of SHB's corporate customers.

Successful capital increase also helps SHB increase its capital buffer, CAR ratio is always maintained at a high level, far exceeding the minimum requirements of the State Bank's operational safety regulations - demonstrating the Bank's strong financial capacity and good risk tolerance.

Although the nine-month business results have not been disclosed, experts believe that SHB will maintain a good growth rate. The driving force comes from credit growth every quarter, improved profit margins thanks to optimized source structure, capital utilization, continued good control of operating costs and stable asset quality. The rotation of key credit programs and technology investments is starting to show effectiveness, creating a foundation for acceleration at the end of the year and next year.

Recently, SHB has completed increasing its charter capital to VND45,942 billion, according to the plan approved by the general meeting of shareholders at the beginning of the year, by issuing shares to pay the second 2024 dividend at a rate of 13%. Previously, the bank also completed paying the first 2024 dividend at a rate of 5% in cash. The total 2024 dividend rate is 18% and is expected to continue in 2025.

Accelerating digitalization: reducing costs, enhancing experiences, creating effective leverage

Vietnam’s banking sector has been accelerating its investment in technology: an average compound annual spend of over 20% shows its determination to transform. Leading banks have applied AI, Big Data, and process automation to shorten approval times, reduce operating costs, and improve customer experience.

A significant portion of the increased resources will be devoted to technology: core banking, data analytics, process automation, and security identification. The goal is to further reduce the cost/income ratio (CIR), shorten processing times, and personalize services for each segment. As technology permeates every link from appraisal, risk management, to serving banking customers, it will simultaneously expand profit margins and improve user experience.

When internal capital is increased, the fastest value transformation is in service capacity. With a larger limit and a digitalized appraisal and approval process, SHB can shorten response time, design flexible credit packages that follow the cash flow of businesses, and diversify retail solutions (home loans, auto loans, cards, etc.). The "retail in wholesale" model exploits the ecosystem of corporate customers (suppliers, agents, employees), creating dual benefits: relying on a solid cash flow foundation, expanding profit margins in the personal sector and diversifying portfolio risks.

Extensive cooperation with domestic and foreign partners

SHB's difference is its extensive cooperation with state-owned and private corporations and international financial institutions; its role as a bank serving many key programs and projects; and its network of key businesses spread across the supply chain and value chain.

SHB is also one of the leading banks in international cooperation, mobilizing medium and long-term capital from WB, ADB, JICA... to develop green credit for the following areas: supporting small and medium enterprises, rural finance, sustainable agricultural transformation, renewable energy. In particular, SHB was selected by WB and GCF as the Risk Sharing Fund Management Unit of the Vietnam Industrial Energy Efficiency Promotion Project (VSUEE) with a total value of 86.3 million USD. This resource not only supplements medium and long-term capital at reasonable costs, but also helps the bank diversify its capital composition, while improving environmental and social risk management standards according to international practices, expanding safe and effective credit, in line with sustainable growth orientation.

In short, increasing charter capital is the door that opens three strategic pillars for SHB: improving internal financial strength, expanding service capacity, accelerating digitalization; at the same time, exploiting the advantages of the business ecosystem and international cooperation to lead safe and effective credit. Based on the results of 9 months of acceleration, SHB's capital increase story is upgraded from "scale" to growth quality, aiming to create sustainable value for customers and shareholders in the new cycle of the economy.

Source: https://www.shb.com.vn/shb-tang-von-nang-cao-nang-luc-tai-chinh-vung-manh-dap-ung-tang-truong-trong-ky-nguyen-moi/