Vietcombank’s charter capital raise plan approved

129 VietcombankThe Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) will raise its charter capital to over 50.4 trillion VND (2.22 billion USD) under a plan recently approved by its board of directors.

The plan was adopted at Vietcombank’s annual general shareholders’ meeting in April.

Accordingly, Vietcombank will issue more than 1 million shares to pay for last year’s dividends at a rate of 27.6% of 2019’s retained earnings. The State-owned bank will also issue additional individual shares, worth 6.5% of its total charter capital at the maximum at the time of offering, to investors and existing shareholders.

The issuance of shares for dividend payouts will add over 10.23 trillion VND to the bank’s charter capital while more than 3 trillion VND is expected to be raised from issuing individual shares.

Previously, the government had approved the State Bank of Vietnam’s proposal to provide an additional 7.65 trillion VND to maintain the State’s ownership ratio at Vietcombank, which now stands at 74.8%.

Vietcombank sets to increase total assets by 5%, total outstanding loans by 10.5%, and consolidated pre-tax profit by 11% this year. The non-performing loan (NPL) ratio will be kept at under 1% and dividends will be paid at 8%.

Vietnam Plus

Leave a Reply

Your email address will not be published.

Special Feature

Bankers' Corner: new sharing feature in ABA website

The ABA introduces the “Bankers’ Corner”, a new feature of the ABA website designed to provide a platform for members to post information or materials that you may wish to share with other members of the Association or anyone who may be interested in them. We encourage members to take advantage of this platform and send your materials to the ABA Secretariat through