SCB last week successfully held its extraordinary general meeting of shareholders for 2020.
|SCB’s vice chairman Bui Anh Dung delivered the opening speech |
With the majority of votes, shareholders approved the policy of increasing charter capital and a roadmap for listing the bank on the Ho Chi Minh City Stock Exchange (HSX). They also approved amendments and supplements to the charter on organisation and operation of the bank.
At the same time, the meeting also approved the transactions of receiving assets to replace the borrower/mortgagor’s repayment obligations worth more than 20 per cent of SCB’s charter capital.
The meeting ratified the policy of increasing the charter capital by VND15 trillion ($652 million) in the period of 2020-2030, of which, in 2020-2021, it will increase by VND5 trillion ($217.4 million). The target was set for SCB to officially list on HSX no later than 2025. The meeting also assigned SCB’s Board of Directors to propose specific plans to ensure compliance with the market situation and the bank’s business operations.
SCB will offer 500 million shares (equivalent to the VND5 trillion increase) to existing shareholders. With such an additional amount, SCB will prioritise its business activities, focusing on investment in fixed assets, modernising banking IT, and renovating its business units as per the bank’s annual schemes, resulting to a solid foundation for growth in the future.
The increase in charter capital has remarkable meaning to SCB, helping improve its financial capacity and strengthen prudential ratios in accordance with State Bank of Vietnam regulations. Such increase is also a premise for SCB to create breakthroughs and develop in a sustainable, safe, and efficient manner, attracting more strategic shareholders.
It was explained at the meeting that the proposal for amendments and supplements to its charter on organisation and operation is necessary to satisfy the needs and actual situation at SCB as well as take into account changes of legal frameworks such as the laws on enterprise, investment, and securities.
After the first three quarters of 2020, SCB’s business activities recorded positive results from services. As of September 30, SCB’s asset size reached nearly VND611.7 trillion ($26.6 billion), affirming its status in the top five largest banks and leading the non-state commercial banks in terms of total assets.
Deposits hit VND553.8 trillion ($24 billion), an increase of VND65.1 trillion ($2.83 billion), 13.3 per cent compared to the beginning of the year. In the first nine months, SCB made a provision of VND1.96 trillion ($85.2 million) for credit risk provisions, bringing the total to over VND13 trillion ($565 million). This is a financial reserve buffer, helping SCB’s business remain stable in the coming time.
In July, SCB also officially signed a strategic partnership agreement with McKinsey & Company Vietnam. The group will help SCB seize opportunities and potentials of the banking industry in a new digital era, consulting on comprehensive solutions to improve its business efficiency with the goal of growing operation income by 25-30 per cent annually.
McKinsey & Company also advised SCB to choose foreign strategic investors in accordance with SCB’s operational strategies and shareholder diversification goals.
Elsewhere, SCB recently opened its Central Customer Service Department on the ground floor of its head office in Ho Chi Minh City’s District 1. This is one of SCB’s strategic activities during its transformation period, as well as in SCB’s business expansion and growth plans for the coming years.