SHB holds annual shareholder meeting in Hanoi on April 23. (Photo: VNA) Hanoi (VNA) – The Saigon-Hanoi Commercial Joint Stock Bank (SHB) has a plan to increase its charter capital by over 5.53 trillion VND (237.48 million USD) to more than 17.57 trillion VND (754.5 million USD) via public offering of shares and paying dividends in the form of additional stocks.
At the bank’s annual shareholder meeting in Hanoi on April 23, Director General Nguyen Van Le said that share issuance is important to the bank to improve its competitive capacity in the context of global economic integration.
SHB will issue some 252.6 million shares valued at 2.52 trillion VND (108.2 million USD) to pay dividends in 2017 and 2018, and offer nearly 300.8 million bonus shares to its existing shareholders in the proportion of 4:1, which means an investor can buy one extra share for every four shares already held by him or her.
Regarding the use of additional charter capital, Le said that some 850 billion VND (36.5 million USD) will be set aside to develop the bank’s information technology system and fixed assets for expanding business network. Meanwhile, the remainder will be used to scale up its lending activities.
At the meeting, SHB also submitted its plan to increase its presence in the Ivory Coast through setting up a branch or a joint-venture to meet capital demand of Vietnamese enterprises, who are increasing investments in the country.
In 2019, SHB targets a place in top five largest commercial banks in Vietnam in terms of total assets. The bank expects its before-tax profit at over 3 trillion VND (128.76 million USD), up 47 percent from 2018; capital mobilisation at 283.9 trillion VND (12.19 billion USD), rising 16.6 percent; and outstanding debt at 261.59 trillion VND (11.23 billion USD), growing 13 percent.
The dividend payout ratio will be 11 percent this year.-VNA
VNA
