Vietcombank’s charter capital raise plan approved

At a Vietcombank branch. (Photo: VNA)

Hanoi (VNA) – The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) will raise its charter capital to over 50.4 trillion VND (2.22 billion USD) under a plan recently approved by its board of directors.

The plan was adopted at Vietcombank's annual general shareholders’ meeting in April.

Accordingly, 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 6.5 percent of its total charter capital at the maximum at the time of offering, to investors and existing shareholders.

The issuance of shares for dividend payouts will add over 10.23 trillion VND to the bank’s charter capital while more than 3 trillion VND is expected to be raised from issuing individual shares.

Previously, the government had approved the State Bank of Vietnam’s proposal to provide an additional 7.65 trillion VND to maintain the State’s ownership ratio at Vietcombank, which now stands at 74.8 percent.

Vietcombank sets 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./.

VNA