Hanoi (VNA) - SHB has signed agreements to transfer charter capitalat SHbank Finance Company Limited (SHB Finance) to Bank of Ayudhya in Thailand,commonly known as Krungsri – a strategic member of the Mitsubishi UFJ FinancialGroup (MUFG).

Accordingly, when the two parties fulfil certain conditions and meet therequirements as prescribed by law and obtain the approval of the State Bank of Vietnamas well as relevant regulatory agencies of Vietnam, Thailand, and Japan, SHBwill transfer 50 percent of SHB Finance's charter capital to Krungsri and willcontinue to transfer the remainder after three years.

The transfer agreement of SHB Finance will bring a significant capital surplusto SHB's shareholders as well as improve the financial capacity and SHB’sreputation. The strategic cooperation between the two banks of the scale and positionof Top 5 in Vietnam and Thailand will open up opportunities for regionaldevelopment and reach out to the world.

Do Quang Hien, SHB’s Chairman of the Board of Directors, said “the consumerfinance market in Vietnam has great potential and room for growth. After aperiod of selection and negotiation, we have found a suitable partner tocontribute to bringing synergistic value in many aspects such as managementexperience; technology; improve financial capacity; network expansion, and newproduct development, international cooperation, enhancement of SHB’s reputationand brand name in the region and in the world.”

Krungsri President & CEO Seiichiro Akita said: "SHB’s local expertiseand an extensive network in Viet Nam complemented by Krungsri’s strength inconsumer finance will enhance SHB Finance’s business competitiveness. Together,we will develop and deliver quality consumer finance products to customers in Vietnam.This milestone also underscores our commitment to ASEAN Expansion Strategyfollowing our current medium-term business plan covering 2021-23.”

Being in the top 10 consumer finance companies in Vietnam, SHB Finance isevaluated with a lot of growth potential and strength, with a charter capitalof 1 trillion VND, 100 percent owned by SHB Bank - one of the licensedcompanies with the highest charter capital in the market.

Krungsri is the fifth largest financial group in Thailand in terms of assets,loans, and deposits in which Mitsubishi UFG Financial Group (MUFG) holds 76.88 percentof the capital. MUFG is Japan’s largest financial group and one of the world’slargest financial organisations.

MUFG also has a lot of experience in operating in the Vietnamese market,holding 20 percent of strategic shares in a large domestic bank in Vietnam and has contributed to the bank's impressive development in theVietnamese market in recent years./.