Illustrative image (Source: viettimes.vn) Hanoi (VNA) - After years of receiving low dividend payout rate by banks, shareholders of many banks are now happy with the high rates announced at this year’s annual general meetings (AGMs) of shareholders.
Few years ago, the highest rate of dividend payout was only 9 percent. The threshold was also the cap that the central bank allowed commercial banks to pay as dividends for shareholders.
However, the situation is quite different this year with banks escaping from the regulation and paying dividends depending on their business performance.
During the AGMs this year, many banks approved to pay high dividends, mainly by shares. This is good news for shareholders as the banking share price has risen sharply over the past year and still has a positive outlook.
The highest dividend payout so far has been reported at VPBank. At its recent AGM, the bank approved to pay dividends and bonus shares at the impressive rate of 67 percent for 2017, a record high in the banking industry.
The bank also said the dividend payout ratio this year would be more than 60 percent if the bank achieved a profit of more than 10 trillion VND (440.5 million USD).
VIB also approved the 2017 dividend payment plan for shareholders at its recent AGM, with 5 percent in cash and 31 percent in shares.
In the previous years, MB’s dividend payout ratio was some 10 percent. But at this AGM, the bank announced the 2017 ratio at 25 percent.
High dividend payout rates were also reported at LienVietPostBank with 15 percent against 10 percent last year, and OCB with 14.2 percent.
According to TP Bank chairman Do Minh Phu, besides the plan of IPO (initial public offering) on April 19 and offering of 15 percent of shares to investors, the bank may pay dividends this year at the rate of 28 percent.
According to experts, besides making shareholders happy, the dividend payout in shares also helps banks to increase charter capital, improve their financial capacity and meet Basel II standards.-VNA
VNA
