Moody’s raises SHB’s credit rating
Accordingly, based on the fundamental factors that SHB has successfully built and implemented in 2021, assessed the business plan of 2022 and strategic direction of SHB in the next 3-5 years, the Credit Rating Agency Moody’s Investors Service has decided to raise the credit rating of SHB from stable to positive.
Specifically, Moody’s upgraded SHB’s long-term deposit and issuer rating from B2 to B1, upgraded SHB’s Basic Credit Assessment (BCA) from B3 to B2, and changed its rating outlook. SHB from stable to positive.
Moody’s upgrade of SHB’s rating reflects a marked improvement in the Bank’s asset quality, as in 2021 SHB has recovered its debts and paid off all VAMC and Vinashin bonds ahead of schedule. shows the rating agency’s expectation of further improvement of SHB’s credit profile, thanks to the improvement of the Bank’s capital.
Moody’s also recognized and highly appreciated the financial capacity of SHB, when the Bank’s charter capital was continuously improved, especially in 2021, it was increased to VND 26,674 billion. The Bank’s profit also increased markedly due to lower and lower operating and credit costs.
In 2021, despite facing many difficulties due to the COVID-19 pandemic, SHB still made great efforts to do business and achieved great success.
At the end of 2021, SHB’s total assets reached VND 506.6 trillion, an increase of 23% compared to the end of 2020. Equity capital according to Basel II standards reached VND 53,114 billion. Capital mobilization from market 1 reached VND 379 trillion, up 12%; outstanding loans reached 369 trillion dong, up 16% compared to 2020. SHB’s pre-tax profit reached 6,260 billion dong, up 91% over the same period, completing 102% of the plan.
SHB completed the preparation of the foundations for advanced capital conversion (FIRB), meeting Basel III standards on liquidity risk, after completing all 3 Basel II pillars ahead of schedule. ; strictly control operating costs, bringing the ratio of operating expenses to total net income (CIR) down to 24.27%, being one of the joint stock commercial banks with the best cost control.
Also in 2021, SHB changed the transaction of SHB’s shares from HNX to HOSE, creating a new wind for the market and investors.
SHB’s capitalization as of December 31, 2021 has reached more than VND 59,471 billion (US$ 2.7 billion), 8.2 times higher than 5 years ago, ranking 9th among private commercial banks and in the Top 10. 30 enterprises with the largest capitalization scale on HOSE, becoming one of the banks to effectively attract foreign investment cash flow.
In particular, SHB’s stock is always liquid, transparent and in the group of stocks with remarkable investment value in the market.
Last year, the divestment of 100% of SHB Finance’s capital to Krungsri Bank – Thailand was the second highest value M&A deal among financial companies. Consumption in the market, bringing a significant capital surplus for SHB shareholders, improving the financial capacity and position of the Bank.
Modernizing technology, implementing digital transformation and digitizing operations have become a remarkable highlight of SHB in 2021, in addition to the remarkable business successes mentioned above.
The bank continues to improve the outstanding customer experience, accelerate the digitization of services to contribute to the strong growth of demand deposits (CASA).
Up to now, SHB has successfully deployed many digital products in turn, especially put Smart Robot – a product of artificial intelligence AI into service provision and continued to expand the number of transaction points. using robots to support customers, deploying digital transaction space throughout the system, aiming to become the most popular digital bank.
Following the successful foundation of 2021, in 2022 SHB sets a target of total assets growth of over 12%, charter capital growth of 37% compared to 2021; profit before tax is expected to be at least 11,686 billion dong, up 87%; Expected dividend in 2022 from 18%.
The two most important financial indicators are mobilized capital and total credit balance, SHB is expected to increase by 9.8% and 14.4%, respectively, to reach VND 504,539 billion and VND 421,715 billion by the end of this year. Bad debt is controlled below 1.3%.
Recently, SHB officially announced the consolidated financial statements for the first quarter of 2022 with impressive business results: Total assets of SHB reached VND 515,553 billion, an increase of 1.8% compared to the beginning of the year, mobilized market capital Market 1 reached 388,116 billion dong, up 2.6%, credit balance reached 388,196 billion dong, up 5.3%. Pre-tax profit reached VND3,227 billion, up 94% over the same period in 2021.
In 2022, along with striving to achieve business goals, SHB will continue to cooperate with the world’s leading strategic consulting groups BCG, IFC, IBM… to provide enhanced comprehensive solutions. business performance, through business model innovation that connects SHB’s operations with key strategic initiatives.
In the next phase, digital transformation will continue to be the mainstay of SHB’s development, aiming to develop the bank in the direction of modernization, increasingly effective business and international reach.
At the same time, SHB continues to focus on building a customer development strategy for the value chain, ecosystem, and customer focus, focusing on developing new customers, focusing on developing targeted customer segments. target, traditional customer file, multi-industry customer, exploiting customer ecosystem, bringing high efficiency in accordance with the potential of the region and region.
SHB also successfully held the 30th Annual General Meeting of Shareholders, elected the Board of Directors and Supervisory Board for the new term 2022 – 2027. Mr. Do Quang Hien continued to be elected and decided by the Board of Directors for the new term. proposed to hold the position of Chairman of the Board of Directors for the term 2022 – 2027.
In 2022, in addition to successfully completing the business goals and business plans set out by the General Meeting of Shareholders, SHB will drastically implement 4 strategic development pillars, including: Institutional reform, mechanism ; Consolidate organizational apparatus and personnel; Customer-centric; Information technology platform and digital transformation.
Impressive business results in 2021 and timely records of prestigious domestic and foreign organizations are proof of the safe, sustainable and comprehensive development of SHB. The Bank has been constantly innovating its operations, making business efforts, and optimizing the benefits of shareholders, investors, customers and SHB.
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