Risk Management: The foundation of SeABank’s sustainable growth

Proactive and integrated risk management system

In modern banking, risk management goes beyond addressing already emerged risks to focus on early identification, proactive prevention and building adequate buffers to withstand market fluctuations. At SeABank, this approach is integrated into core operations, spanning credit, asset and liability management, liquidity and internal controls.

In credit, risk control is applied throughout the loan lifecycle, from customer appraisal, cash flow analysis, industry assessment and repayment capacity evaluation to limit setting, post-disbursement monitoring, early warning and handling of loans showing signs of risk. In addition, centralized management and tailored limits by product, sector and customer help mitigate concentration risk and maintain credit portfolio quality.

Alongside credit risk management, SeABank focuses on strengthening its financial buffers. A stronger capital base enhances its capacity to absorb risks and creates more room for growth, together with funding diversification and broader access to medium- and long-term capital, could improve the stability of the funding structure and reduce refinancing pressure.

In June 2026, SeABank completed a charter capital increase to VND34,288 billion, adding resources for prudential ratios and expanding room for growth. The Bank is also completing procedures to further increase its charter capital to VND34,688 billion through an employee stock ownership plan (ESOP). Alongside capital strengthening, SeABank continues to diversify its funding sources and expand access to nearly US$1.1 billion in funding from international financial institutions, reinforcing resources for business operations and sustainable development priorities.

Beyond enhancing financial capacity, SeABank continues to upgrade its governance systems in line with international standards. Having completed the Basel II pillars, the Bank continues to develop its risk management framework in alignment with Basel III standards and is progressing toward implementing the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). The Bank also strengthens its internal control system under the COSO framework and the “three lines of defense” model.

This approach helps SeABank shift the focus of risk management to early identification, measurement, monitoring and warning, enabling more proactive prevention and response. Rather than constraining growth, risk management enables the Bank to define acceptable risk levels, allocate resources efficiently and control risks before they affect asset quality. As a result, risk management becomes a capability that supports SeABank’s growth within its risk appetite while enhancing its resilience to market volatility.

Credit ratings upgraded by Moody’s, strengthening growth foundation 

The foundations built and reinforced by SeABank are clearly reflected in the 2026 credit ratings by Moody’s. The agency upgraded SeABank’s Baseline Credit Assessment (BCA) and Adjusted BCA from B1 to Ba3, upgraded its long-term Counterparty Risk Ratings (CRRs) to Ba2 and long-term Counterparty Risk (CR) Assessment to Ba2(cr). Moody’s also maintained the Ba3 ratings on long-term deposits and the Issuer Rating, and changed outlook from Stable to Positive.

According to Moody’s, the upgrade reflects improvements in SeABank’s credit profile, including asset quality, capital and liquidity. The Bank’s asset quality has remained stable, new overdue loan ratios are expected to stay low over the next 12-18 months.

The capital base was also assessed positively, with TCE/RWA ratio projected to remain above 12%, in line with banks at the same rating level. In addition, continued funding diversification and stronger access to medium- and long-term funding from development finance institutions are expected to improve funding stability, reduce refinancing risk and further improve SeABank’s credit profile over the next 12-18 months.

These assessments show that the effectiveness of risk management lies not only in limiting losses but also in building a financial foundation strong enough for the Bank to stay ahead of volatility. With asset quality under control, a stronger capital base and an increasingly stable funding structure, SeABank is better positioned to allocate capital efficiently, manage risks proactively and expand its business within its risk appetite.

An improved credit profile also strengthens the trust of customers, investors and financial institutions, creating more favorable conditions for the Bank to expand cooperation and access funding from both domestic and international sources.

As the banking industry places increasing emphasis on growth quality and capital efficiency, risk management will increasingly become a major competitive advantage. An effective system not only helps a bank protect asset quality and enhance resilience but also creates room for efficient capital use, broader cooperation and new growth opportunities.

For SeABank, Moody’s upgrade across multiple rating categories and the shift to a “Positive” outlook are not just a ratings milestone. They also recognize the Bank’s persistent efforts to strengthen governance capacity, enhance resilience and build a safe, efficient and sustainable growth foundation.