In the newly released solicitation document for shareholders, the management of SHB proposes the use of 1,831 billion VND to pay dividends in cash (5%) and 4,028 billion VND to pay dividends in shares (15%). If approved, this will be the first time SHB has issued cash dividends since 2013.
The last time SHB implemented a cash dividend was more than 10 years ago, at a rate of 7.5%. In recent years, SHB has often issued dividends in the form of shares to increase its charter capital. For instance, in 2023 the bank issued dividends at a rate of 18%.
This year, Techcombank has also surprised with a plan to pay dividends and bonuses of up to 115% of charter capital. It will present its shareholders with a plan to allocate more than 5,283 billion VND of undistributed profits to pay cash dividends in 2023 at a rate of 15% per share (1 share receiving 1,500 VND). The expected implementation period is the second quarter or third quarter of 2024.
This is a major change for Techcombank after more than a decade of retaining profits to strengthen its capital base and develop its business. According to the bank’s management, this will ensure a regular cash flow for shareholders, as they will have direct income from annual business results while still optimizing the benefits from potential price increases.
If approved by the General Meeting of Shareholders, this would be the first time Techcombank has declared a cash dividend in over a decade and the first time it has declared a stock dividend in five years.
At the 2024 Annual General Meeting of Shareholders held on April 2, VIB approved a dividend distribution plan with a total ratio of 29.5% of charter capital, including 12.5% in cash dividends and 17% in bonus shares. In terms of cash dividends, in February 2024, VIB made an interim dividend payment to shareholders at a rate of 6% and will pay the remaining 6.5% on May 17. The total amount used to pay cash dividends is 3,171 billion VND.
Also at the 2024 Annual General Meeting of Shareholders held on April 4, ACB approved a plan to allocate over 9,700 billion VND to pay dividends to shareholders at a total ratio of 25%, of which 15% will be in the form of shares and 10% in cash. ACB will allocate approximately 3,884 billion VND to pay cash dividends to shareholders.
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At the upcoming meeting, HDBank will submit to the General Meeting of Shareholders its dividend plan for 2023 (to be implemented in 2024) at the shareholder meeting on April 26, with a ratio of 25%, including 10% in cash and 15% in shares. Assuming approximately 2.913 billion shares outstanding, the bank estimates that it will pay 2,913 billion VND in cash dividends to shareholders.
In 2024, MB expects to use 2,653 billion VND to pay cash dividends at a rate of 5%. The timeframe for cash dividend distribution has not yet been announced.
Meanwhile, VPBank plans to pay all of its 2023 dividends in cash. Accordingly, the bank’s management has submitted a plan to allocate 7,934 billion VND of 2023 profits to pay cash dividends, equating to a rate of 10%. Dividend payments will be made in the second and third quarters of 2024. The specific timeframe will be determined by the Board of Directors, ensuring compliance with legal regulations and the bank’s actual conditions.
At this year’s Shareholders’ Meeting, the Management Board of Eximbank proposed using 1,741 billion VND to pay dividends to shareholders at a rate of 10%, through two forms: shares (7%) and cash (3%).
Regarding the cash dividend plan, the amount the bank plans to distribute is 522 billion VND. If approved by shareholders, this would be the first time Eximbank has paid a cash dividend in 10 years. The last time the bank paid a cash dividend to shareholders was in 2014, at a rate of 4%.
Thus, to date, a total of eight banks have announced plans or have already distributed cash dividends in 2024, with a total amount of nearly 27,700 billion VND, equivalent to 1.1 billion USD. Previously, only six banks had issued cash dividends to shareholders in 2023: TPBank, VIB, MB, ACB, VPBank, and HDBank, with the total amount exceeding 23,000 billion VND.
