SHB consolidates grasp on Indochina

September 14, 2016 | 10:10

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Saigon-Hanoi Commercial Joint Stock Bank (SHB) is expanding its operations in Indochina to solidify its foothold on the market.

On September 9, SHB held the inauguration ceremony of its 100 per cent owned bank in Cambodia.

The bank, which has a chartered capital of $50 million, is the second SHB subsidiary in Indochina after the one located in Laos.

SHB plans to increase the new bank’s chartered capital to $75 million by 2018. In addition, it set a target to open nine first-tier branches and 14 transaction offices, not counting the major office, in the next three years.

Earlier in January 2016, SHB opened a wholly-owned subsidiary in Laos with a chartered capital of $50 million. The new bank was upgraded from a transaction office which started operation in 2012.

SHB specialises in credit services, currency, gold trading, and international payments. In August 2012, the bank merged with Hanoi Building Bank (Habubank). As of the first quarter of this year, SHB had a total asset value of VND205 trillion ($9.23 billion) and a chartered capital of VND9.5 trillion ($427.87 million). It currently has approximately 500 branches and transaction offices across the country.

Cambodia is a highly sought-after target for Vietnamese banks, considering the current presence of BIDV, Sacombank, Agribank, and MBBank.

Along with Cambodia, Laos is considered a traditional market of Vietnamese banks. Earlier, State Bank of Vietnam authorised Vietnam Joint Stock Commercial Bank for Industry and the Trade (Vietinbank) and Military Bank to open wholly-owned subsidiaries in Laos by upgrading their existing branches.

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