Customers transact at VPBank’s Tran Hung Dao branch, Hanoi. Photo: Tran Viet / TTXVN
Vietnam International Commercial Joint Stock Bank (VIB) will spend over VND 1,500 billion to temporarily advance cash dividends in 2023 for existing shareholders at a rate of 6%, meaning shareholders will receive VND 600 for each owned share.
This is the first bank to announce cash dividend distribution this year. The expected payment date is February 21, 2024.
VIB has previously distributed dividends in March and May 2023 at rates of 10% and 5% respectively. In addition, VIB also distributed dividends in the form of shares to increase charter capital at a rate of 20%. The bank also issued an additional 7.6 million shares to employees (ESOP) in June 2023. As a result, VIB’s charter capital has increased to VND 25,368 billion.
Not only VIB, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is also expected to propose an annual cash dividend payout of at least 20% of total profit, equivalent to 4-5% of the bank’s equity at the beginning of the year. An estimation indicates about VND 1,500 per share for 2024.
Mr. Jens Lottner, CEO of Techcombank expressed confidence that the conversion strategy and positive results in 2023 will create a solid foundation for high growth in the coming years. This allows the bank to plan a comprehensive, long-term cash dividend strategy for shareholders.
Along with Techcombank and VIB, shareholders of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and Tien Phong Commercial Bank (TPBank) also have confidence in cash dividend distribution this year.
Mr. Ngo Chi Dung, Chairman of VPBank’s Board of Directors, shared at the 2023 shareholders’ meeting that the bank will distribute cash dividends for 5 consecutive years and have enough capital to distribute 30% of annual after-tax profit to shareholders. It is expected that cash dividend distributions will be carried out in the first half of the year.
Similarly, Mr. Do Minh Phu, Chairman of TPBank’s Board of Directors, also emphasized that if business operations go smoothly and achieve high growth, the bank will continue to distribute dividends to shareholders in the form of cash and shares; the dividend rate will be considered based on each period, but the cash portion will account for a significant portion.
In 2023, TPBank distributed approximately VND 3,955 billion to pay cash dividends to shareholders at a rate of 25%.
In addition, the latest information from Petrolimex Group Joint Stock Commercial Bank (PGBank) stated that February 23 will be the last registration date to receive bonus shares, corresponding to February 22 as the ex-dividend date.
PGBank will issue 120 million bonus shares to existing shareholders at a rate of 10:4, meaning that for every 10 shares held, shareholders will receive 4 newly issued shares.
The capital source for issuing bonus shares is taken from cumulative after-tax undistributed profit and the supplementary capital reserve according to the audited financial statements for 2022.
If successful, PGBank’s charter capital will increase from VND 3,000 billion to VND 4,200 billion. Previously, the State Bank of Vietnam has approved PG Bank’s capital increase through the issuance of shares of the owners’ equity source. The bank’s last dividend distribution was in 2012 at a rate of 10.38% in cash.
According to experts, whether cash or share dividends are distributed depends on the strategy of each bank, but it mainly relies on business performance. However, the business results of many banks in 2023 have shown a slowdown, so the dividend distribution rate, if any, is expected to be lower than the previous year.
