SeABank has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), helping the bank to actively monitor and handle bad debts (in the form of outstanding bonds), while increasing transparency on its financial statements to create momentum for profit growth in the following years.

SeABank therefore 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 VND3.539 trillion ($152.9 million). After the early redemption, SeABank will not have to make provision for the VAMC bonds from January 1, thereby contributing to increasing profits for the bank in the near future.

The acquisition of all special bonds from VAMC may partly increase the bad debt ratio, however SeABank strictly controls and ensures that bad debt is lower than the rate prescribed by the State Bank of Vietnam. This move also shows positive signs regarding SeABank’s financial resources and business situation, providing more provisions but still ensuring the profit plan.

SeABank posted several impressive achievements in 2019, with growth in retail fees and loans, following its strategy of becoming a retail bank with a customer-centric orientation. 2019 was also a milestone year, as it increased its charter capital and was approved by the State Bank of Vietnam to meet Basel II international standards and was given a “B1” long-term credit rating by Moody’s. These achievements confirm the success of its sustainable risk management strategy, which is closely aligned with its business development orientation.

SeABank was also the first bank in Vietnam to successfully upgrade the core banking software T24 Temenos to the R18 version - the most modern in the world and with many important features to enhance transaction management and risk control, improving productivity, speed and stability of the system, and making it easy to develop new features and products, thereby giving SeABank’s customers a great experience.

This success is also a milestone within SeABank’s digital convergence strategy, together with the introduction of internet banking for corporate customers and the SeAMobile App for individual customers.