Moody’s highly appreciates SeABank’s liquidity with Positive development outlook

May 10, 2022 09:30 GMT+7

Notably, this organization also upgraded the Bank’s Basic Credit Assessment (BCA) rating from B2 to B1.

Accordingly, the announcement of Moody’s said that the upgrade of SeABank’s Basic Credit Assessment (BCA) rating to B1 reflects the bank’s marked improvement in asset quality, profitability and capital sources. . Asset quality at SeABank improved as the bank’s bad debt ratio fell from 1.9% (in 2020) to 1.6% by the end of 2021, despite disruptions caused by the pandemic. Profitability has been recorded to improve and Moody’s expects SeABank’s return on assets (ROA) to remain stable at around 1% in the next 12-18 months as its loan portfolio includes loans for Retail loans and loans to small and medium enterprises will bring higher profits. Along with that, SeABank has also increased to full capital, the ratio of tangible equity to risky assets (TCE/RWA) has improved, reaching 9.9% at the end of 2021, up from the previous level. 8.3% at the end of 2020 and is likely to fluctuate around 10% over the next 12-18 months. Moody’s also shows that liquidity at SeABank is highly appreciated with a liquid asset to tangible asset ratio of 37% at the end of 2021.

It can be seen that 2021 is a year of strong transformation for SeABank when the Bank focuses its resources on investing in technology and continuously improves service quality, effectively exploiting the ecosystem of strategic partners and cross-selling. products and services… this has helped SeABank achieve breakthrough growth results, reaching a pre-tax profit of VND 3,268 billion, an increase of 89% compared to 2020; total assets increased by 31,456 billion VND compared to 2020, reaching 211,663 billion VND; expense to income ratio (CIR) 36% and bad debt ratio (NPL) continued to decline at 1.65%. SeABank’s capital adequacy ratio (CAR) is 11.7%, higher than the 8% required by the State Bank.

SeABank also achieved positive results in the first quarter of 2022 with a profit before tax of VND 1,306 billion, up 87.1% over the same period in 2021; Total assets of 231,222 billion VND, an increase of 19,558 billion VND compared to December 31, 2021. Net revenue from services reached VND 274.21 billion, up 122.6%. At the same time, SeABank’s net non-interest income (NOII) also recorded an impressive growth of 126.5 percent, reaching VND 757.8 billion, the bad debt ratio (NPL) remained stable at 1.64%. .

Besides, financial capacity is also one of the important factors for Moody’s to have positive recognition and assessment of SeABank when the Bank’s charter capital is continuously improved. In 2021 and 1Q2022, SeABank’s charter capital has increased by VND 4,510 billion to VND 16,598 billion and is expected to continue to increase to VND 22,690 billion in 2022. The increase in charter capital is an important milestone. important in planning and orientation, helping the Bank to have enough potential to realize its goals: implementing a digital convergence strategy, investing heavily in technology, and comprehensively digitizing operational processes. credit, payment, customer service, diversification of products and services, etc., thereby bringing operational and transaction efficiency, increasing experience and better meeting the needs of all customers.

The prestige and performance of SeABank is also confirmed through the trust and cooperation of many major financial institutions in the world, typically one of which is the International Finance Corporation (IFC), a member of the International Finance Corporation. The World Bank (World Bank), has provided $150 million in funding to SeABank to expand financial access for SMEs and women-owned businesses in Vietnam and promote project financing. climate in June 2021. After 6 months of cooperation, IFC and 5 international lenders Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK PCL, OPEC Fund for International Development (OPEC Fund) and responsAbility Investments AG have extended the credit package. granted to SeABank from 150 million USD to 220 million USD. Also in 2021, the Asian Development Bank (ADB) decided to increase the credit limit for SeABank to 30 million USD after 8 months of signing the cooperation.

Impressive business results in 2021 along with the recognition, trust and cooperation of prestigious domestic and foreign organizations such as Moody’s, IFC, ADB… are proof of the safe, healthy and comprehensive development of the company. SeABank and is an important premise for the Bank to continue to grow strongly in the following years.

Pham Trang