The Southeast Asia Commercial Joint Stock Bank (SeABank) completed an early redemption of all special bonds at Vietnam Asset Management Company (VAMC) on December 30, thereby helping it actively monitor and handle bad debts (in the form of outstanding bonds), while increasing transparency in financial statements to create momentum for profit growth in the years to come.

SeABank becomes one of the earliest banks in Vietnam to complete the handling of special bonds at VAMC.

The total value of the special bonds bought by SeABank from VAMC in 2019 was VND3.5 trillion ($152.9 million). After the early redemption, the bank will not have to make provision for VAMC bonds from January 1, thereby contributing to increasing its profits.

The acquisition of all special bonds from VAMC may partly increase its bad debt ratio, but the bank strictly controls and ensures its bad debt is lower than the rate prescribed by the State Bank of Vietnam. This move also reveals positive signs for the bank’s financial resources and business situation.

The bank posted good results in 2019, with growth in fees and loans and pursuing its strategy of becoming a retail bank with a customer-centric orientation.

2019 was also a milestone year because it increased its charter capital to VND9.3 trillion ($404.9 million), as approved by the State Bank of Vietnam, to meet Basel II international standards, and received a long-term credit rating of B1 from Moody’s. Such achievements confirm its sustainable risk management strategy, which is closely aligned with its business development orientation.

It was also the first bank in Vietnam to successfully upgrade its core banking software, T24 Temenos, to the R18 version - the most modern version in the world and with many important features that enhance transaction management and risk control, improving productivity and speed and stability in the system, and making it easy to develop new features and products, thereby giving customers a better experience. This is also a milestone in its digital convergence strategy, together with the introduction of internet banking for corporate customers and the SeAMobile App for individual customers.

The successful implementation of important projects will contribute to ensuring its business operations are safe, efficient, sustainable, and transparent, contributing to the development of a stable and healthy banking sector in Vietnam.