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SHB to issue additional shares to raise equity
The Sai Gon–Ha Noi Bank (SHB) plans to raise its equity by nearly 25 per cent to VND11.08 trillion, or $527.62 million, this year.
The bank plans to achieve this by issuing more shares to the existing shareholders at the rate of 4:1.
This is to meet the business targets for 2014, according to SHB reports, which will be presented at the bank's shareholder meeting this weekend.
There will be about 221.6 million additional shares with a combined value of over VND2.21 trillion, or $105.24 million. The additional capital will be used to buy assets, upgrade information technology, expand business networks and promote lending.
The outstanding loans are expected to grow by 23 per cent to reach over VND102 trillion, or $4.86 billion, this year, with bad debts to be controlled below 3 per cent. About 65 per cent of the loans will be arranged for short-term credit, and 35 per cent for the medium to long–term ones.
SHB said that it would continue to restructure credit portfolios to concentrate on areas facing few risks, such as farm produce, food, consumer goods, rubber, energy, oil and gas, pharmaceutical products and garments. It will reserve up to 40 per cent of all loans for agriculture and rural development.
This year, the bank plans to earn VND1.27 trillion, or $60.48 million, in pre-tax profits, up 27 per cent over last year; and VND180 trillion, or $8.57 billion, in total assets, a year-on-year increase of 25 per cent.
The bank plans to open networks in Viet Nam's central and southern regions, as well as in Laos and Cambodia, and will recruit more employees in 2014.
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