HANOI, Vietnam, Dec. 31, 2019 /PRNewswire/ -- Southeast Asia Commercial Joint Stock Bank (SeABank - Vietnam) has completed the early redemption of all special bonds at Vietnam Asset Management Company (VAMC), thereby helping the Bank to actively monitor and handle bad debts (outstanding bonds), while increasing transparency on the financial statements to create momentum for profit growth in the following years. Therefore, SeABank has become one of the earliest banks in Vietnam to complete the handling of special bonds at VAMC.
The total value of special bonds bought by SeABank from VAMC in 2019 is VND3,539 billion. After the early redemption, SeABank will not have to make provision for VAMC bonds from January 1, 2020, 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 the bad debt is lower than the rate prescribed by the State Bank of Vietnam. This move also shows positive signs of SeABank's financial resources and positive business situation, although providing more provisions but still ensuring the profit plan.
In 2019, SeABank has several impressive achievements with the growth in retail of fees and loans, follow the strategy to become a retail bank and customer-centric orientation. 2019 is also a milestone year when SeABank increased its chartered capital to VND9,369 billion, was approved by the State Bank of Vietnam to meet Basel II international standards and has been rated B1 long-term credit rating by Moody's. These achievements confirm the sustainable risk management strategy which is closely aligned with the Bank's business development orientation.
SeABank is also the first bank in Vietnam to successfully upgrade the core banking software T24 Temenos to the R18 version - the most modern version in the world with many important features to enhance transaction management and risk control, improving productivity, speed and stability of the system, making it easy to develop new features and products, thereby giving SeABank's customers a great experience. This success is also one of the milestones of SeABank's digital convergence strategy together with the introduction of internet banking for corporate customers and SeAMobile App for individual customers.
The successful implementation of important projects will contribute to ensuring SeABank's business operations which are safe, efficient, sustainable and transparent, contributing to the development of a stable, healthy banking industry.