Shinhan Bank Vietnam, High Profitability and Low Non-Performing Loan Ratio... Some Internal Management Issues Noted in Central Bank Audit

【Hanoi (Vietnam) = Bu Thi Tien Correspondent】Shinhan Bank, a leading foreign bank in Vietnam, has been found to achieve the highest profits and maintain a significantly low non-performing loan ratio according to the audit results of the State Bank of Vietnam, receiving an overall positive evaluation. However, it was reported that some minor operational issues were pointed out. 
According to local media on the 14th, the State Bank of Vietnam's Audit Bureau conducted an audit on Shinhan Bank Vietnam on the 10th, and the bank was recognized for positive results in various management performance aspects. As of the end of 2024, Shinhan Bank's pre-tax profit was 5 trillion 652 billion dong (298.4 billion won), an increase of 2.1% compared to the previous year, making it one of the foreign banks with the highest profits in Vietnam.
Shinhan Bank Vietnam recorded a high growth rate of about 20% in loan operations, and the non-performing loan ratio was found to be low compared to total loans. The proportion of loans in high-risk areas such as real estate or securities was low, and there were no loans for BT·BOT projects.
However, Shinhan Bank Vietnam was still noted for some operational issues and violations. In terms of management, some contents of the Risk Management Committee meeting minutes held in the 2nd and 4th quarters of 2024 were found to not match the actual situation and internal regulations.
In relation to credit provision and non-performing loan handling, some internal regulations were unclear or inconsistent, and procedural violations were found in loan reviews, loan contract signing, fund execution, and post-management processes for some customers. Additionally, some foreign exchange trading contracts lacked essential information according to related regulations, and in anti-money laundering operations, some transaction report information checked as samples did not match related guidelines.
The State Bank of Vietnam analyzed that the issues and violations found at Shinhan Bank Vietnam were due to subjective reasons such as negligence by bank staff and deficiencies in internal control procedures, in addition to objective reasons from the customer side. Accordingly, Shinhan Bank Vietnam was required to submit an explanation and prepare measures and improvement plans to prevent recurrence.
Shinhan Bank Vietnam was established in 1993 and is headquartered in Ho Chi Minh City. It currently operates 29 branches and 22 transaction offices nationwide in Vietnam. Its main business areas are fund procurement, credit provision, payment, fund management, and foreign exchange transactions. As of December 31, 2024, the bank's registered capital amounts to about 5 trillion 710 billion dong (301.4 billion won).
vuutt@fnnews.com Bu Thi Tien Correspondent