Banks issue billions of shares to increase capital

Specifically, Vietcombank Joint Stock Commercial Bank (Vietcombank) has just announced the closing of the shareholder list on March 13 to issue shares to pay dividends from the remaining profit after tax, after setting aside accumulated funds until the end of 2018 and the remaining profit in 2021.

Accordingly, Vietcombank will issue more than 2.76 billion shares to pay dividends to shareholders, equivalent to an issuance rate of 49.5%. This is the highest dividend payment in shares ever for Vietcombank shareholders.

After the stock issuance plan is completed, Vietcombank's charter capital will increase by more than VND27,666 billion, from VND55,890 billion to VND83,557 billion - the highest in the Vietnamese banking system.

In addition, Vietcombank also plans to issue 6.5% of its capital to institutional investors (equivalent to 1.3 billion USD), expected to be completed in the first half of 2025 if market conditions are favorable.

By the end of 2024, Vietcombank's credit growth will reach 13.7% with total accumulated outstanding loans reaching 1.44 million billion VND, total accumulated capital mobilization reaching 1.53 million billion VND, an increase of nearly 8% compared to the end of the previous year; total assets will increase by 12.9% and exceed 2 million billion VND for the first time, the bad debt ratio will remain at a low level of 0.97%,

Meanwhile, the Bank for Investment and Development of Vietnam ( BIDV ) announced that it had successfully offered 123.8 million individual shares. Of which, more than 38.6 million shares were distributed to domestic investors, nearly 85.2 million shares belonged to foreign investors and economic organizations with foreign investors holding more than 50% of charter capital.

At the end of the issuance, the total number of BIDV shares increased to more than 7.02 billion units, raising charter capital from VND 68,975 billion to more than VND 70,213 billion.

In 2024, BIDV's pre-tax profit will reach nearly VND 25,122 billion, an increase of 14% compared to 2023.

In the private banking sector, Vietnam International Commercial Joint Stock Bank (VIB ) plans to issue more than 417 million bonus shares to shareholders and 7.8 million bonus shares to employees. If these two issuances are completed, VIB's charter capital will increase from VND29,791 billion to more than VND34,000 billion.

According to VIB, the capital increase aims to enhance the bank's financial capacity to develop technology, products, services, human resources, expand its branch network, market share and scale of operations. At the same time, the bank will meet capital safety ratios in business operations, supplement medium and long-term capital for credit activities.