SHB successfully pioneers in implementing bank mergers

Previously, the SBV also carried out the mandatory transfer of OceanBank to MBBank and CBBank to Vietcombank. Thus, within just 3 months, the SBV completed the transfer of 4 weak banks. Previously, many merged deals were successfully implemented as a premise for the Government and the State Bank to promote this policy.

Pioneering in closely following the country's orientation

More than 10 years ago, the first organization to volunteer to implement this orientation and policy in the country was SHB, with the deal to merge Habubank. This merger is both an opportunity and a challenge for SHB in the development process.

Overcoming difficulties, accompanying staff and workers, SHB has quickly reached the TOP5 of the largest private banks in Vietnam in terms of total assets, market share, network system and personnel, marking a period of remarkable development.

SHB's acquisition of Habubank not only demonstrates its companionship, closeness and pioneering in implementing the directions and policies of the Party and the Government, but also demonstrates its mettle and long-term strategy to create a strong breakthrough in financial scale and strength.

However, SHB also had to focus resources and a whole process to handle post-merger issues, especially bad debt. This is something that not every bank dares to accept merging a weak bank at that time. SHB has implemented a series of strong measures such as setting aside reserves, restructuring credit portfolios and promoting debt collection. Notably, the restructuring of Binh An Seafood (Bianfishco).

Within just three years of receiving the merger, SHB's bad debt ratio has decreased to below 3%, strengthening its financial foundation. By 2021, SHB had fully paid off all VAMC bonds ahead of schedule, demonstrating success in its risk management and restructuring strategy.

To date, SHB's merger with Habubank is a typical successful deal, the first deal between the two banks on the market. Creating an important precedent for the Vietnamese banking industry in other M&A deals and the subsequent restructuring phase.

The absorption of a bank with many financial problems and effective handling has proven SHB's outstanding management capacity. Following the restructuring roadmap, SHB always completes and exceeds the plan set for each restructuring stage.

By the end of 2024, SHB recorded total assets at more than VND 747 trillion, providing outstanding credit of nearly VND 534 trillion to the economy. Pre-tax profit in 2024 reached more than VND 11,543 billion, up 25%. SHB is also one of the 5 banks that have contributed the largest budget in many years.

SHB's long-term strategic vision

Not only merging HabuBank, in 2015, SHB continued to receive the transfer of Vinaconex Consumer Finance Company - Viettel, now SHBFinance - a step that demonstrates the vision of SHB Chairman of the Board of Directors Do Quang Hien. At that time, many investors were concerned about this somewhat "adventurous" decision.

SHBFinance, after joining SHB, became one of the companies with the highest charter capital in the market, with a charter capital of VND 1,000 billion because the bank owns 100% of the capital. Over time, the company has recorded impressive growth, with a wide network of provinces and cities.

In 2021, when the consumer finance market was developing strongly, feeling the right time, SHB found the "bride" as desired - Ayudhya Public Limited Bank ( Krungsri) to " marry the beautiful girl" SHBFinance. This is the second most valuable consumer finance company transfer deal in the market, surpassing previous Techcombank, MBBank, HDBank.

In May 2023, SHB completed the transfer of 50% of SHBFinance's capital to partner Krungsri. SHBFinance is also converted from a Finance Company Limited to a Finance Company Limited according to the new decision and license of the State Bank of Vietnam. The remaining 50% of SHBFinance's charter capital will continue to be transferred by SHB to Krungsri after 3 years according to the signed agreement.

In 2024, Krungsri continued to express its desire to buy the remaining 50% of SHBFinance's charter capital in advance, in the second phase of the financial company transfer agreement.

The 100% transfer of SHB Finance's charter capital will bring a significant surplus of capital to SHB shareholders as well as improve the bank's financial capacity and position. SHB continues to cooperate with partners, develop retail business with technology platforms, utility products, advanced and modern services.

In particular, SHB will focus on core business segments, continue to invest in the transformation and digitalization process, opening up many new development opportunities. That demonstrates the long-term, special vision of SHB leader - Chairman of the Board of Directors Do Quang Hien.

The merger of Habubank or the transfer of SHBFinance are special milestones in SHB's strong development journey and strategic vision, throughout more than three decades of development.

Entering a new era - the era of national growth, prosperity, SHB will continue to accelerate and make breakthroughs with a strong and comprehensive Transformation Strategy 2024 - 2028 to continue to affirm its leading position in the market and reach regional and international levels.