SeABank builds on strong risk management formula

In its Q3 financial results report released on October 22, SeABank’s total mobilisation from domestic and international financial institutions and individuals as of the end of September reached nearly $7.45 billion, an increase of almost 2 per cent compared to 2023.

Current account savings account deposits showed impressive growth, reaching $861.54 million, up 24 per cent compared to the end of last year, accounting for 13.46 per cent of total customer deposits.

Alongside that, SeABank continued its upward momentum, with pre-tax profit reaching $187.83 million, a net rise of $56.33 million, up 43 per cent on-year compared to last year.

Specifically, total operating income reached $382.92 million, up 39.56 per cent on-year; non-interest income amounted to $68.75 million; and net interest income, accounting for the majority, stood at $314.21 million.

The net interest margin remained stable and ascended to 3.94 per cent, an on-year climb of nearly 1 per cent despite a reduction in average lending rates, which only began to show signs of rising at the end of July.

“Focusing on sustainable development goals, with an emphasis on digital technology and product and service diversification, SeABank’s performance indicators showed strong growth compared to the same period, with Return On Equity at 14.96 per cent and Return on Assets at 1.73 per cent,” stated the Q3 report.

By the end of the first nine months, SeABank’s total customer loan balance reached $8.204 billion; total assets increased by $933.17 million compared to 2023, hitting $12.02 billion.

Additionally, the bank is in the process of completing regulatory procedures to raise its charter capital to $1.18 billion following the successful issuance of 329 million shares as dividend payments for 2023 and an additional issuance of 10.3 million shares to increase equity capital from retained earnings.

In the first nine months of this year, SeABank saw significant customer base growth due to its strong investments in technology and enhanced user experience, coupled with various attractive products and incentives. As a result, SeABank recorded nearly 430,000 new customers, a 92 per cent increase compared to the results over the past eight months, raising its total customer base to nearly 3.6 million.

“The expansion of our customer base is a key driver for SeABank to enhance business efficiency and broaden operations with the goal of becoming the most preferred retail bank. This achievement demonstrates that the bank is on the right path by prioritising digital transformation as a critical mission, providing innovative, tailored products along with a range of utilities, thus creating a distinct position in the market,” said a representative from SeABank.

Along with the expansion of its customer base, digital transformation has also helped the bank improve operational efficiency and optimise operating costs, with the cost-to-income ratio for the first nine months significantly reduced, maintaining at 32.54 per cent.

The bank maintains a solid and comprehensive risk management system, with a capital adequacy ratio at 12.85 per cent, higher than the Basel III minimum requirement at 10.5 per cent. What is more, the bank consistently enhances its credit appraisal, asset valuation, loan utilisation monitoring, particularly for high-risk sectors, while strengthening control and handling of non-performing loans, ensuring operational safety with a non-performing loan ratio of 1.87 per cent.

A key priority for the institution is the prevention of technology security risks and the protection of customer information in the digital transformation era. Significant investments have been made in data loss prevention systems, risk management projects, and enhanced card security measures, including the Digital Authentication Framework and Mastercard Proactive Scanning.

Additionally, the organisation has upgraded its e-verification technology by integrating the national population database and chip-based ID verification to bolster transaction security.

Maintaining a solid risk management foundation with efficient and stable operations, SeABank continued to receive a Ba3 credit rating from Moody’s for several key categories, with a “Stable” development outlook as of September. Moody’s also commended SeABank for its improvements in asset quality management, high capital safety ratios, stable lending activities, and liquidity, while expressing confidence in the bank’s stable credit capabilities.

To strengthen its risk management foundation and drive business growth, SeABank consistently accelerates the implementation of its Digital Convergence strategy, focusing on investing in advanced systems and technologies to enhance control, prevention, and early risk detection, thereby ensuring safe and uninterrupted operations.

The transfer of SeABank’s entire capital contribution in Post and Telecommunications Finance Co., Ltd. (PTF) is part of its roadmap to strengthen its financial capacity.

The transfer of SeABank’s entire capital contribution in Post and Telecommunications Finance Co., Ltd. (PTF) is part of its roadmap to strengthen its financial capacity.

SeABank signed a $30 million convertible loan agreement with The Norwegian Investment Fund for Developing Countries (Norfund) on August 13.