Shinhan Bank Vietnam posts 6.2% growth in H1 post-tax profit

Shinhan Bank Vietnam, wholly owned by South Korea’s Shinhan Financial Group, earned a post-tax profit of VND2,523.8 billion ($101.5 million) in the first half of this year, up 6.2% year-on-year.

In its recently-released H1/2024 financial statement sent to the Hanoi Stock Exchange, Shinhan Bank Vietnam reported its return on equity (ROE) ratio at 15.73%, an improvement from 15.21% as of end-2023.

Its capital adequacy ratio (CAR), per the central bank’s Circular 41 issued in 2016, reached 19.5%, lower than 20.43% as of end H1/2023 and 20.26% as of end-2023. The minimum regulatory CAR is set at 8%.

The bank’s equity was VND32,270.6 billion ($1.3 billion) as of end H1/2024, up 16.9% year-on-year and 8.5% from end-2023.

The lender’s liabilities-to-equity changed from 4.64 as of end-2023 to 5.34 as of H1/2024. The figure was 5.92 in end-2022.

The South Korean bank established its first representative office in Ho Chi Minh City in August 1993, not long after Vietnam and South Korea officially established diplomatic relations. In August 2023, Shinhan Bank officially marked 30 years in Vietnam.

2017 became a turning point for Shinhan Bank, when it successfully acquired the retail banking sector of ANZ Bank Vietnam.

In mid-August 2024, subsidiaries of Shinhan financial ecosystem in Vietnam, namely Shinhan Bank, Shinhan Finance, Shinhan Life, Shinhan Securities and Shinhan DS, officially relocated at The Mett Building of Thu Thiem New Urban Area, Ho Chi Minh City's Thu Duc city. The reunion of five subsidiaries of Shinhan financial ecosystem in Vietnam in a common building demonstrates the unity of Shinhan’s vision and creation of diverse financial ecosystem in the country.