Vietnam's SHB bank okayed to expand charter capital to $1.76 bln

Saigon-Hanoi Bank (SHB) has received approval from Vietnam's central bank to raise its charter capital to VND45.942 trillion ($1.76 billion) after issuing a 13% share dividend, maintaining its position among the Top 5 largest private banks in Vietnam.

This move reaffirms SHB's strong commitment to continuously enhancing financial capacity and ensuring shareholder benefits, the bank stated in a release. Previously, it completed a 5% cash dividend payout for 2024.

According to the State Bank of Vietnam's (SBV) approval, SHB, listed on the Ho Chi Minh Stock Exchange (HoSE) as SHB, will issue 528.5 million shares to existing shareholders at a 13% rate, meaning that for every 100 shares held, shareholders will receive 13 additional shares.

The capital used for this issuance will come from the bank’s post-tax profits after appropriations for required reserves in 2024.

Upon completion, SHB’s charter capital will rise from VND40.657 trillion to VND45.942 trillion ($1.76 billion). The additional capital will be used to expand operations, drive business growth, and further invest in digital transformation initiatives.

Per a resolution passed at the 2025 AGM, the bank will distribute a total dividend of 18% for 2024, consisting of 5% in cash and 13% in shares. The 5% cash dividend was already paid on June 20, 2025.

The early implementation of both cash and share dividends demonstrates the leadership’s commitment to safeguarding the rights and interests of shareholders.

Over the years, SHB has operated with safety, transparency, and sustainable profitability. The bank has maintained regular dividend payments of 15-18% and has met or exceeded all safety, liquidity, and risk management requirements set by the SBV and aligned with international standards, it noted.

Nearly $2.4 billion market cap, strong investment in technology, digitalization

As of Monday, SHB’s market capitalization reached nearly $.4 billion, with its stock price rising 64% since the beginning of the year to VND14,600 ($0.56) per share.

SHB consistently ranks among the most liquid stocks in the VN30 (featuring the 30 largest cap stocks on the HoSE) and within the banking sector, with an average daily trading volume of 70 million shares in Q2/2025.

On July 7, SHB recorded a new liquidity record with nearly 250 million shares traded. Foreign investors have shown strong interest, recording a net purchase of 41 million shares in that session alone. From early July to date, they have net bought nearly 81 million SHB shares.

By Q1/2025, SHB's total assets had reached VND790.74 trillion ($30.25 billion), a 6% increase from the end of 2024. Total outstanding credit hit VND575.78 trillion ($22 billion), up 7.8%, with a focus on key production and business sectors and industries aligned with Vietnam’s sustainable development goals.

The bank posted pre-tax profit of VND4.4 trillion ($168.32 million) for Q1, completing 30% of its full-year target.

For 2025, SHB aims to surpass VND832 trillion ($31.83 billion) in total assets and expects to exceed VND1,000 trillion by 2026, affirming its leadership in Vietnam’s and the region's financial markets.

The lender is currently undergoing a bold transformation for the 2024-2028 period under the vision of becoming a “Bank of the Future,” integrating advanced technologies such as AI, Big Data, and Machine Learning across its operations.

This model is expected to enhance competitiveness, fully digitize the customer journey, automate operations, modernize core banking systems, and expand IT infrastructure to boost efficiency and offer innovative financial solutions.

Commitment to social responsibility

For many years, SHB has ranked among the top five banks contributing most to the national budget and has actively responded to government initiatives, according to the release.

With a development philosophy rooted in social responsibility and the motto "Contributing to society is a duty and an honor," SHB and its ecosystem have launched numerous humanitarian programs, contributing trillions of VND through the Vietnam Fatherland Front to support the poor, vulnerable groups, disaster recovery, and disease control.

Notable contributions include a VND60 billion ($2.3 million) program to build 1,000 homes for disadvantaged people and individuals who rendered service to the nation in the northern mountainous province of Ha Giang and a VND25 billion donation to eliminate makeshift houses and build Great Solidarity homes in Dien Bien province in northwestern Vietnam.

For its practical contributions, SHB has received numerous prestigious awards such as "Bank for Humanity," and "Best Bank for Public Sector Clients in Vietnam" by FinanceAsia, "Best Sustainable Finance Bank in Vietnam" by Global Finance, and "Best SME Bank for Sustainable Finance" by Alpha Southeast Asia. In 2025, SHB was ranked among the Top 500 most valuable banking brands globally by Brand Finance.

In its transformation strategy, SHB aims to become the most efficient bank in Vietnam, the most loved digital bank, the leading retail bank, and a top-tier bank in providing capital and financial services to strategic corporate clients in both the private and state sectors, particularly in supply chain, value chain, ecosystem, and green development areas.

Looking ahead to 2035, it aspires to become a leading retail bank, a green bank, and a top digital bank in the region.