Southeast Asia Commercial Joint Stock Bank (SeABank), one of the leading commercial joint stock banks in Vietnam, has been granted a $200 million loan by the US International Development Finance Corporation (DFC).
According to DFC'ss announcement, it has approved several transactions of development priorities, focusing on food security, climate change, gender equity, and increasing financial access this quarter. These 34 approved projects totaled more than $1.4 billion. DFC partners with the private sector to provide financial support and solutions for projects with great economic potential and new economic tools that enable it to grant loans and offer credit solutions.
SeABank is the first and only financial organization in Vietnam to receive an up to $200 million loan.
DFC's loan for SeABank will help enhance the bank's financial capability to carry out its planned projects, focusing on addressing the credit gap for women-owned and women-led corporations, and SMEs, dealing with the difference between the addressable demand of the market and the existing supply in the economy.
SeABank is known for its developmental strategies, including offering financial packages designed exclusively for women. It has been awarded outstanding bank for community and innovative banking in 2021 by the Vietnam Banking Association.
With the support of capital financing and advice on developing a loan portfolio for women-owned businesses from the International Finance Corporation and other international lending parties, SeABank has effectively implemented the program "Loans for Women-owned Businesses" and positioned itself as the bank of choice for women-owned businesses.
Before DFC, SeABank also received a $150 million loan package from various international investment funds. This showcases SeABank's commitment to sustainable development strategies, affirming its credibility, great impacts of sustainable projects as well as the acknowledgment of world-class financial organizations for SeABank.
The new loan comes after Moody's upgraded SeABank’s baseline credit assessment from B2 to B1. This assessment of a bank’s financial profile is structured around key risks and mitigants.
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% of its 2021 budget. Total assets increased 18% compared to 2020, reaching $9.36 billion; Total non-interest income in 2021 reached $81.74 million, accounting for 26.3% of total revenue; Return on average assets (ROA) and Return on average equity (ROE) are 1.33% and 16.12% respectively; the NPL ratio is at 1.65%.
At the end of the first quarter of 2022, SeABank's business results maintained a sustainable growth rate: Total assets reached $10.06 billion, an increase of $ 851.03 million compared to December 31, 2021; Pre-tax profit reached $56.83 million, up 87.1% compared to the same period of 2021; Total net revenue increased by $101.03 million, a 61.3% YoY increase; Net income from services reached $11.92 million, an increase of 122.65% YoY.
In the 2022 General Meeting of Shareholders, SeABank sets out a plan to increase its charter capital to $987.25 million in 2022, pre-tax profit target at $212.62 million, total assets expected to grow by 10% compared to 2021, and the NPL ratio is controlled under 2%.