View of a Vietbank's branch in Hà Nội. Vietbank will pay share dividends in 2024 at a rate of 25 per cent. — Photo vneconomy.vn
Many banks will pay dividends to shareholders shortly, according to information available.
Since the beginning of 2024, three State-owned banks Vietcombank, BIDV and VietinBank have not announced dividend payments to shareholders, though they have approved many profit distribution plans. However, recent market information shows that the banks may soon pay dividends in shares and increase capital.
In a recent report sent to the National Assembly’s Standing Committee, Governor of the State Bank of Việt Nam (SBV) Nguyễn Thị Hồng said that the Government will submit to the National Assembly a decision on increasing State capital at Vietcombank by more than VNĐ20.69 trillion. The additional capital will come from share dividends of State shareholders at Vietcombank.
BIDV is also expected to pay dividends as a plan was approved at the bank’s 2024 annual general meeting of shareholders.
Accordingly, BIDV will issue nearly 1.2 billion additional shares to pay dividends in 2022, equivalent to 21 per cent of outstanding shares at the end of 2023.
VietinBank’s chairman Trần Minh Bình said that the SBV and the Ministry of Finance allowed the bank to retain all 2022 profits of nearly VNĐ11.68 trillion to increase capital through share dividends.
Besides State-owned banks, a number of private banks also plan to pay dividends soon.
After paying a ten per cent cash dividend in July, HDBank is implementing a plan to pay dividends in shares at a rate of 20 per cent, according to a resolution approved by the bank’s annual general meeting of shareholders.
After issuing shares to pay dividends, HDBank's charter capital will increase by a maximum of nearly VNĐ5.83 trillion to more than VNĐ35.9 trillion, which will help the bank continue to be in the group of banks with the largest charter capital in the country’s banking system.
Vietbank has recently also announced information on issuing shares to pay dividends from retained earnings to increase its charter capital to nearly VNĐ7.14 trillion. Accordingly, the bank will pay share dividends in 2024 at a rate of 25 per cent, which is quite high compared to the general market level.
At the extraordinary general meeting of shareholders due on November 15 this year, LPBank will seek shareholders' opinions on issuing shares to existing shareholders to pay dividends at a rate of 16.8 per cent, with the aim of increasing its charter capital in 2024.
After paying a 30 per cent dividend in shares last month, MSB also has a policy of paying dividends at a maximum rate of 15 per cent in cash or/and shares from profits in 2024, along with retained profits of previous years. If business results meet expectations, MSB said it can make an advance cash dividend payment in the fourth quarter of this year. — VNS