An HDBank transaction office in HCM City. HDBank will pay a dividend of 25 per cent in shares for 2020, increasing its charter capital to more than VND 20.07 trillion (US$872.3 million). — Photo courtesy of the bank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) will pay a dividend of 25 per cent in shares for 2020, increasing its charter capital to more than VND20.07 trillion (US$872.3 million).

The proposal has been approved by the State Bank of Vietnam.

The lender will issue more than 398 million shares to existing shareholders at the rate of 25 per cent.

Undistributed profits that have been audited and fully allocated to funds according to regulations will be capitalised for the issuance.

The record date for the dividends will be in July.

In the first quarter HDBank recorded pre-tax profits of more than VND2.1 trillion, an increase of 68 per cent year-on-year and equivalent to nearly 30 per cent of the full-year target.

Its earnings from services doubled.

The bank has been assessed as having excellent growth potential in bancassurance, consumer finance, credit cards, and other product and service lines.

Recently HDBank achieved Basel III standards.

Moody's Investors Service upgraded the outlook on its long-term deposit and issuer ratings from stable to positive, and the Asian Development Bank has decided to increase the trade finance limit and rollover loan limit for HDBank from $85 million to $150 million.

Many international financial institutions have hailed HDBank's stability and development prospects, and strengthened ties with it.

With a charter capital of over VND20.07 trillion, HDBank is ready to deploy strategic plans that enable it to reach a higher growth trajectory. — VNS