Illustrative image (Source: viettimes.vn) Hanoi (VNA) - After years ofreceiving low dividend payout rate by banks, shareholders of many banks are nowhappy with the high rates announced at this year’s annual general meetings(AGMs) of shareholders.
Few years ago, the highest rate of dividend payoutwas only 9 percent. The threshold was also the cap that the central bankallowed commercial banks to pay as dividends for shareholders.
However, the situation is quite different thisyear with banks escaping from the regulation and paying dividends depending ontheir business performance.
During the AGMs this year, many banks approvedto pay high dividends, mainly by shares. This is good news for shareholders asthe banking share price has risen sharply over the past year and still has apositive outlook.
The highest dividend payout so far has beenreported at VPBank. At its recent AGM, the bank approved to pay dividends andbonus shares at the impressive rate of 67 percent for 2017, a record high inthe banking industry.
The bank also said the dividend payout ratiothis year would be more than 60 percent if the bank achieved a profit of morethan 10 trillion VND (440.5 million USD).
VIB also approved the 2017 dividend payment planfor shareholders at its recent AGM, with 5 percent in cash and 31 percent in shares.
In the previous years, MB’s dividend payout ratiowas some 10 percent. But at this AGM, the bank announced the 2017 ratio at 25 percent.
High dividend payout rates were also reported atLienVietPostBank with 15 percent against 10 percent last year, and OCB with14.2 percent.
According to TP Bank chairman Do Minh Phu, besidesthe plan of IPO (initial public offering) on April 19 and offering of 15 percentof shares to investors, the bank may pay dividends this year at the rate of 28 percent.
According to experts, besides making shareholders happy, thedividend payout in shares also helps banks to increase charter capital, improvetheir financial capacity and meet Basel II standards.-VNA
VNA
