SHB focuses on handling debts at Vinashin and VAMC
10:43 | 02/08/2021 Print Article
SHB will soon handle all debts of Vinashin and purchase all bonds held by Vietnam Asset Management Company this year thanks to increasing loan-loss provisioning.
|SHB has just published its financial report for the second quarter |
According to SHB’s latest financial report, its cost for loan-loss provisioning in the first half of 2021 reached VND2.258 trillion ($98.17 million), up 140 per cent on-year, aiming at resolving arrears at Vinashin and Vietnam Asset Management Company (VAMC).
Instead of extending the timeline of resolving its debts to 2022 as mentioned at the latest shareholders' meeting, SHB most recently revealed that it has been attempting to finish the target within 2021 to improve its asset quality, clear bad debts, and also form a base for dynamic growth.
As of June 30, 2021, SHB’s total assets hit the value of VND458 trillion ($19.9 billion), up 11 per cent against early this year. Moreover, its self-financing capital and charter capital recorded VND40.425 trillion ($1.76 billion) and VND19.26 trillion ($837.4 million), respectively.
At the same time the bank has seen slight increases in non-performing loan ratio to 1.87 per cent and in consolidated bad debt ratio to 2 per cent, due to COVID-19 complications in Laos and Cambodia, affecting the classification of liabilities at local subsidiaries.
Over the second quarter of 2021, SHB recorded VND1.431 trillion ($62.2 million) in pre-tax profit, raising accumulated pre-tax profit during the first half to VND3.095 trillion ($134.57 million), up 86.5 per cent on-year, fulfilling more than 50 per cent of the goal for this year.
The return on equity (ROE) ratio hit an impressive 24.3 per cent thanks to reaching growths at most of its business targets and also stimulating the development of bank services.