BUSINESS OPERATIONS IN 2022

• Mr.Vo Duc Tien - Vice Chairman of the Board of Directors: from August 4, 2021 to July 19, 2022 Mr. Vo Duc Tien was appointed as CEO.
• Ms. Ngo Thu Ha: On July 20, 2022, Ms. Ngo Thu Ha, Deputy CEO was appointed as Acting CEO. On September 1, 2022 she was appointed as CEO of SHB.
• Mr. Luu Danh Duc: Mr. Luu Danh Duc was appointed Deputy CEO of SHB on September 1, 2022.

The total number of employees of the Bank and its subsidiaries

as of December 31, 2022 is

9,504

people

80%

OF WHOM HOLDING BACHELOR’S DEGREE AND POSTGRADUATE DEGREE.

Fair and transparent recruitment policy with defined criteria to assess qualifications and skills of candidates based on professional standards as a basis in the recruitment process.

The selection of personnel with high standards of qualifications, health and ethics has always been focused by SHB with the maintenance of recruitment website, internal recruitment newsletter, and job posting in the social networks to ensure professionalism, transparency and fairness and enhance the image and reputation of the SHB brand in the labor market.

SHB always considers human resources as the most valuable asset, taking staff as the driver for SHB’s development with the training and development policy in line with its business strategy, suitable to each target group.

Training in 2022 has many changes with training programs appropriate for key positions in the bank, focusing on training courses on improving management capacity - Leader of SHB Talent Lead, Sales Skills & Sales Management, Improving Customer Service Quality, Appraisal Skills, Soft Skills...

In addition to hundreds of external and internal direct training courses, SHB develops training through high-technology applications such as: SHB - Learning management system (LMS); training courses quality survey; Learning exchange forum; video conference training;... in order to minimize training costs as well as improve the labor productivity.

Compensation package are competitive with the goal of providing a stable source of income so that employees are really dedicated to their works.

(For details of HR policies and policy changes,
please see the section Sustainable development - HR policy, please refer to page 120)

SHB has successfully negotiated the divestment of SHBFC (SHBFC) to the foreign partner (Thai Investor - Bank of Ayudhya Public Company Limited - Krungsri), in 02 phases.

During phase 1: SHB will transfer 50% of the company’s charter capital to Krungsri in 2023 (or at other time agreed upon by the parties) .

In phase 2: Three years since the completion of phase 1, SHB will continue to transfer the remaining 50% of the charter capital to Krungsri. On December 30, 2022, the SBV of Vietnam issued a written approval for SHBFC to convert from a one-member limited liability company to a limited liability company with two or more members. The approval of the SBV of Vietnam is one of the final steps to divest from SHBFC to Krungsri Bank of Thailand - a strategic member of MUFG Group, Japan. At the beginning of 2023, the two parties will expedite the remaining procedures to complete the agreement.

In addition, SHB continues to implement a series of projects in its roadmap to become a leading modern and effective retail bank in Vietnam. The biggest project has been converted into a functional unit - the establishment of SHB Digital Banking with the goal of becoming No. 1 bank in terms of growth rate of active digital customers in middle class and affluent customer segments by 2027.

a. Digital Banking Division (DBD)

Digital Banking Division was established to lead digital transformation activities guided by the principle of customer companionship and insights and following Agile working methodology and Design Thinking. The Division’s organizational model, roles and responsibilities and recruitment were also completed. Squads setup were quickly conducted to build digital product journeys. By the end of 2022, SHB Digital Banking Division was consisted of 150 employees, building 100% digital customer journey on digital channels with 8 Squads and 86 major features to facilitate online pre-approved credit cards, online pre-approved unsecured overdraft, loan on pledged saving books, online savings, eKYC and various payment features to promote channel shifting and digital transformation in transactions. The DBD has also established a separate squad for corporate customers with 10 features.

In addition, the DBD officially launched the Omni Channel project for retail customers in April 2022. This is a project to rebuild the integrated platform of mobile banking, internet banking and offline channels (branches, 24/7 hotline) aiming at delivering a superior experience whenever customers interact with the bank. The project will synchronize a series of technologies of leading partners including:

• 1
  Omni Channel Architecture to ensure smooth experience of all channels;
• 2
  Micro Service architecture to increase flexibility and scalability, including moving the system to the Cloud;
• 3
  Upgrade ESB to enhance the connection efficiency between digital channels and core services (Core, Card, LOS).

Boosting the current experiences coupled with designing more features shall further satisfy customer needs (online credit cards, online loans, online pledged loan, ...), the project will increase business growth in retail banking segment. MVP2 Omni Channel channel went live as planned in October 2022. This platform is expected to fully go live and provide an outstanding experience for retail clients starting from the second quarter of 2023.

b. Key projects on digital transformation at SHB

Saigon - Hanoi Commercial Joint
Stock Bank Asset Management One Member Limited Liability Company (SHAMC)

Profit before tax

8.3 billion VND

In 2022, the Company has achieved the following: satisfy 100% of the security needs at SHB’s business locations nationwide, increasing the total number of business locations that have deployed security to 266 targets (59 branch offices and 207 transaction offices nationwide). SHB AMC is managing 18 warehouses and 5 debt settlement assets nationwide, meeting 100% of warehouse deployment needs proposed by SHB units. This number will be further expanded in the following years to serve the security and warehousing needs of the parent company - SHB.

As of December 31, 2022, the total number of employees was 792 people; Total revenue in 2022 reached VND 91.1 billion. Total revenue amounted to VND 89 billion. Profit before tax reached VND 8.3 billion.

Saigon - Hanoi Laos Single-member Limited Liability Bank (SHB Laos)

Profit before tax

73 billion VND

SHB Laos provides banking and financial services and products, contributing to diversifying business portfolios, limiting risks, proactively improving judgment ability and performing further business operations in compliance with relevant regulations, and as authorized by the parent bank in Vietnam. The birth of SHB Laos brought SHB several opportunities in exploiting, making full use of the vast and promising potential of the Lao market, attracting investment, contributing to improving SHB’s reputation and position in the Vietnamese and international financial markets, contributing to accomplishing the mission of promoting the vision and brand of SHB to the world, contributing to promoting the friendly neighborly relationship between Vietnam and Laos.

After 11 years of operation, and 6 years of transforming the model from SHB Laos Branch to Bank Limited Laos (2016), SHB Laos has made positive changes in the process of investing and developing its business activities in Laos.

As of December 31, 2022, SHB Laos has 3 transaction points including 1 head office and 2 branches, 81 employees. Total assets reach VND 3,661 billion; Customer deposit amounts to VND 585 billion. Total loan outstanding equals VND 2,067 billion. Profit before tax reaches VND 73 billion.

Saigon - Hanoi Cambodia Limited Liability Bank (SHB Cambodia)

Profit before tax

200 billion VND

Stepping into the year 2022, despite facing the general difficulties of the Covid-19 global pandemic, SHB Cambodia has achieved strong business performance in terms of total outstanding loans, customer deposit and pre-tax profit compared to 2021.

As of December 31, 2022, SHB Cambodia has 5 transaction points including 1 head office and 4 branches, and 59 employees. Total assets reached VND 12,882 billion; customer deposit counts up to VND 2,287 billion. Total loan outstanding equals VND 11,897 billion, up 30%. Profit before tax is equivalent to VND 200 billion.

SHB Finance Single-member LLC (SHBFC)

Profit before tax

6,839 billion VND

In 2022, the economy rebounds sharply, some industries even undergoing higher growth rate than before the Covid-19 epidemic. On that basis, the following results have been achieved:

As of December 31, 2022, the staff of SHBFC is 3,263 people. Total assets reach VND 6,839 billion, an increase of VND 587 billion equivalent to a 9.4% increase. Total customer deposit amounts to VND 4,622 billion, up VND 952 billion, equivalent to a 26% rise. Total loan outstanding is equivalent to VND 6,021 billion, an increase of VND 1,476 billion equivalent to 32% year-on-year growth.

Basically, key financial indicators demonstrate solid performance in line with the business plan.

(For Environmental and social impact assessment report, please refer to the Sustainable development on page 120)