ACB get nod to raise charter capital

Wednesday, Aug 05, 2020 08:18

A securities guard checks the body temperature of people entering Asia Commercial Bank through the border gate. ACB plans to issue 498.8 million shares to pay a dividend, equivalent to the total value of VND4.98 trillion. — Photo the courtesy of the bank

The State Bank of Viet Nam has approved Asia Commercial Bank (ACB)’s plan to raise its charter capital from VND16.6 trillion (US$721 million) to VND21.6 trillion.

The plan will be implemented via dividend payment in shares to shareholders.

ACB plans to issue 498.8 million shares to pay the dividend, equivalent to a total value of VND4.98 trillion.

The payment ratio is 30 per cent, meaning every shareholder will receive three new shares for every 10 they hold.

The expected issuance time is the fourth quarter of this year.

Previously, ACB planned to pay a 2019 dividend in shares and cash. However, due to the COVID-19 pandemic, the State Bank required banks to use resources to reduce interest rates, support businesses and not pay dividends in cash.

ACB also plans to pay the 2020 dividend at a rate of not less than 20 per cent.

In the first six months of this year, ACB recorded a consolidated pre-tax profit of VND3.8 trillion, up 5.4 per cent over the same period last year.

The bank plans to earn a pre-tax profit of VND7.6 trillion this year. — VNS

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