It will increase its charter capital from over VNĐ35.2 trillion to VNĐ70.45 trillion (US$2.8 billion) through a bonus share issuance from retained earnings.
Charter capital of banks is expected to have a big change this year as four State-owned banks are considering an increase in capital while the State Bank of Viet Nam (SBV) has approved a capital hike for 21 private banks.
Data from the State Bank of Vietnam (SBV) showed by the end of 2022, the charter capital of the whole banking system reached VND876.99 trillion, up 13.04 per cent over the same period last year.
Banks increased their charter capital by more than VND110 quadrillion in 2021 - the highest annual growth to date - to enhance financial strength and meet the central bank’s regulations.
Shinhan Securities Vietnam (SSV) has increased its charter capital from US$35 million to nearly US$87 million. This will be a strong motivation for the company to conquer the retail market in Viet Nam.
Many securities companies are planning to raise capital through forms such as dividend payment, purchase rights and private offerings to meet the growth of the stock market.
Vietcombank will issue millions of shares to pay for last year’s dividends and raise its charter capital to over VND50.4 trillion (US$2.22 billion) under a plan recently approved by its board of directors.
SHB was given approval from the State Bank of Viet Nam to increase its charter capital from the current VND19.2 trillion (US$843.2 million) to VND26.6 trillion ($1.16 billion).
The national flag carrier Vietnam Airlines has increased its charter capital to VND22.14 trillion (nearly US$1 billion) by issuing additional shares to current shareholders.
“This fresh injection of capital demonstrates UOB’s commitment to deepening our presence in Viet Nam, and contributing to the country’s ongoing development," said Wee Ee Cheong, UOB Deputy Chairman and CEO.
SeABank will be able to issue shares to its existing shareholders and pay a dividend following the plan approved at its annual general meeting of shareholders.