Vietcombank to raise charter capital again

Hanoi (VNA) - The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) proposed raising its charter capital to over 50 trillion VND (2.17 billion USD) during its annual shareholders’ meeting on April 23.

Under the plan, Vietcombank will issue more than 1 million shares to pay for last year’s dividends at a rate of 27.6 percent of 2019’s retained earnings. The State-owned bank will also issue additional individual shares, worth a maximum of 6.5 percent of total charter capital at the time of offering, to investors and existing shareholders.

At least 46 million individual shares will be issued to its strategic investor Mizuho Bank, so the Japanese bank will still hold at least 15 percent of shares.

The dividend payouts are expected to be conducted this year while the individual share offering is scheduled for 2021-2022.

Also at the meeting, Vietcombank said it is set to increase total assets by 5 percent, total outstanding loans by 10.5 percent, and consolidated pre-tax profit by 11 percent this year. The non-performing loan (NPL) ratio will be kept at under 1 percent and dividends will be paid at 8 percent.

As of the end of 2020, Vietcombank’s total assets exceeded 1.32 quadrillion VND, up 8.5 percent against 2019, total outstanding loans were valued at over 845 trillion VND, up 14 percent year-on-year, and the NPL ratio remained at 0.62 percent.

Pre-tax profit last year totaled more than 23 trillion VND, equivalent to the 2019 figure and 16.3 percent higher than the annual goal. As of the end of March 2021, pre-tax profit was 8 trillion VND, up 70 percent against the same period last year./.