With a dividend payout ratio of 15%/share (each share receives 1,500 VND) and over 3.5 billion shares outstanding, it is estimated that Techcombank will need to spend nearly 5,284 billion VND to pay dividends to shareholders. The expected payment date is June 5, 2024.
This is the first year Techcombank has paid cash dividends after a decade of retaining profits to strengthen its capital base and develop its business.
In addition to paying cash dividends to shareholders, Techcombank’s BOD also approved a resolution to implement a 100% bonus share issuance plan that was approved by the 2024 Annual General Meeting of Shareholders.
Specifically, Techcombank plans to issue over 3.5 billion bonus shares. The exercise ratio is 1:1 (shareholders who own 1 share will receive 1 new share).
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Techcombank’s capital increase process. Unit: Billion VND
Source: VietstockFinance
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After completing the issuance, Techcombank’s charter capital is expected to increase by over 35,225 billion VND, to over 70,450 billion VND. The foreign ownership limit of Techcombank shares remains unchanged at 22.49% of the bank’s charter capital before and after the capital increase.
Techcombank will use the additional capital to supplement its working capital on the principles of safety and efficiency.
The expected completion time is in 2024 when the bank completes the necessary procedures according to the law.
In 2024, Techcombank targets pre-tax profit of 27,100 billion VND, an 18.4% increase compared to 2023, based on the expectation of 16.2% growth in outstanding loans, reaching 616,031 billion VND (as approved by the State Bank of Vietnam). Customer deposits are in line with actual credit growth. The bad debt ratio is controlled below 1.5%.
Closing the first quarter of the year, the bank achieved nearly 7,802 billion VND in pre-tax profit, up 39% year-on-year. Compared to the plan, the bank has completed nearly 29% after the first quarter.
As of the end of Q1/2024, the bank’s total assets increased by 4% compared to the beginning of the year, to nearly 886,000 billion VND. Of which, outstanding loans to customers reached over 559,000 billion VND, an increase of 8%. Customer deposits reached over 458,000 billion VND, an improvement of 1%. The bad debt ratio remained low at 1.13%.
