Moody’s upgrades SeABank’s baseline credit assessment

May 02, 2022 | 11:25
Moody’s has upgraded the Baseline Credit Assessment for SeABank from B2 to B1, while also maintaining SeABank’s long-term deposit and issuer ratings at B1 for the fourth consecutive year, with a positive outlook.
Moody’s upgrades SeABank’s baseline credit assessment
SeABank’s efforts are being recognised by ratings agencies as well as through prestigious awards

The Moody’s assessment is a testament to the efforts of SeABank in business operations, asset quality, profitability, and capital in 2021 with pre-tax profit reaching $144.38 million, equal to 135 per cent of its 2021 budget.

Total assets increased 18 per cent compared to 2020, reaching $9.36 billion. Total non-interest income in 2021 reached $81.74 million, accounting for 26.3 per cent of total revenue.

Meanwhile, return on average assets and return on average equity are 1.33 per cent and 16.12 per cent respectively, while the non-performing loan (NPL) ratio stands at 1.65 per cent.

At the end of the first quarter of 2022, SeABank’s business results maintained a sustainable growth rate. Total assets reached just over $10 billion, an increase of $851 million compared to December.

Moody’s upgrades SeABank’s baseline credit assessment

Pre-tax profit reached $56.83 million, up 87.1 per cent compared to the same period of 2021. Total net revenue increased by more than $101 million, a 61.3 per cent on-year increase.

Meanwhile, SeABank’s net revenue from services reached $11.92 million, an increase of 122.65 per cent on-year. At the same time, the net-operating-income ratio also recorded an impressive growth of 126.5 per cent over the same period, reaching $32.98 million.

The cost-to-income ratio continued to drop sharply to 28.32 per cent, in line with the bank’s business orientation.

Also in the first quarter of 2022, SeABank has completed increasing its charter capital to $722.18 million

At the 2022 general meeting of shareholders, SeABank set out plan to increase its charter capital to $987.25 million in 2022, with pre-tax profits targeting $212.62 million, total assets expected to grow by 10 per cent compared to 2021, and the NPL ratio being controlled under 2 per cent.

SeABank has been on the list of systematically important banks in the banking system, according to the regulations of the State Bank of Vietnam. It has received prestigious awards such as Outstanding Bank for the Community 2021 by the Vietnam Banking Association, Bank of the Year in Vietnam 2021 by The Banker in the United Kingdom, and Top 50 Fastest-growing Enterprises by Vietnam Report, among others.

By Thuy Ngan

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