SHB is currently poised for significant growth driven by two primary factors: (1) Vietnam’s upgrade to an emerging market as per FTSE Russell, and (2) a capital increase strategy to attract foreign funds. This upgrade is expected to stimulate foreign investment funds, bringing Vietnamese shares closer to the valuations of other emerging markets. SHB will benefit from the anticipated credit growth projected at 18-20% in the near future. The bank has approved a plan to increase its charter capital by an additional 7.5 trillion VND and aims to maintain a capital adequacy ratio (CAR) above 12%. Efforts to expand lending, develop digital banking, and improve technology are key initiatives to enhance competitive capacity. So far, SHB’s stock has increased by 110% this year, indicating attractive investment potential from this capital increase strategy.
Leave a Reply