The trading session on August 13 ended with SHB’s market price at VND 19,350 per share, with a market capitalization surpassing $3 billion. The stock attracted strong trading volume, leading the market with 115 million units traded. Foreign investors net bought more than 6 million shares, making SHB the most net bought stock during the session.
SHB shareholders received double good news: a 13% stock dividend and a 59% surge in Q2 profit
August 19 is the record date for the 2024 dividend payment in shares at a ratio of 13% of SHB, equivalent to SHB issuing an additional 528.5 million shares. After completing the stock dividend payment, the bank’s charter capital will exceed VND 45,942 billion, remaining in the Top 5 largest privately-owned joint-stock commercial banks in Vietnam. Previously, SHB completed the first 2024 cash dividend payment at a rate of 5%. The total dividend ratio for 2024 approved by the SHB General Meeting of Shareholders is 18% and is expected to be maintained in 2025.
According to the 2024 Annual Report, SHB’s dividend policy aims for stability and high returns for investors, balancing shareholder interests with ensuring resources for the bank’s development. The average dividend payout ratio over the past five years has been 13.9%. For 2023, the cash dividend payout ratio for the first period was 5%, and the stock dividend payout ratio for the second period was 11%.
The market positively received the stock dividend announcement amid SHB’s strong share price performance and trading volume surge in Q2 2025, especially in July, with a gain of over 33% and an average trading volume of over 90 million units per session. As of early August, foreign investors had net bought nearly 107 million shares, reflecting their growing confidence in the bank’s prospects.
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SHB stock performance since the beginning of the year
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Concurrently, SHB announced its financial results for the first half of 2025, featuring a series of positive financial indicators, reinforcing expectations of improving profitability and asset quality. In Q2, SHB’s pre-tax profit exceeded VND 4,500 billion, a 59% increase over the same period last year. For the first six months, the bank’s pre-tax profit reached VND 8,913 billion, up 30% year-on-year and equivalent to 61% of the 2025 plan.
As of June 30, 2025, SHB’s total assets amounted to nearly VND 825 trillion. Loans to customers exceeded VND 594.5 trillion, up 14.4% from the beginning of the year and a significant 28.9% increase year-on-year. This growth outperformed the 9.9% credit growth rate of the entire banking system. Notably, the corporate customer segment, SHB’s prominent strength, witnessed an impressive 15% growth from the beginning of the year and a 35% surge compared to the same period last year.
Asset quality also showed marked improvement, with the ratio of Group 2 debts and bad debts (NPL) decreasing to 0.25% and 2.56%, respectively (compared to 0.67% and 2.84% at the end of Q1/2025). The bad debt coverage ratio (LLR) increased significantly to 65.44% compared to 58.39% at the end of 2024, approaching the average level of private joint-stock commercial banks. Meanwhile, SHB maintained its high operational efficiency, with the cost-to-income ratio (CIR) at 16.4%, among the best in the industry in terms of cost control.
These results not only provide a solid foundation for maintaining a stable dividend policy but also clearly reflect the bank’s strengthening financial resilience.
Enhancing Safety Standards and Expanding Credit
The State Bank of Vietnam (SBV) has officially issued Circular No. 14/2025/TT-NHNN, which will take effect from September 15, 2025, replacing Circular No. 41/2016, aiming to align with Basel III standards. The implementation of Basel III will require banks to maintain a higher capital adequacy ratio (CAR) of 10.5% (compared to 8.0% under Basel II).
SSI Research believes that Circular 14 is a positive step by the SBV, bringing Vietnam closer to international safety standards, enhancing transparency, and improving risk management. The reduced risk weights for certain loan segments and the gradual implementation plan support sustainable credit expansion, aligning with Vietnam’s GDP growth targets.
At the same time, the CAR is considered a prerequisite for banks to expand credit. An improved CAR provides banks with additional “capital buffer” to extend new credit while remaining compliant. From an investment perspective, stock dividends may dilute short-term earnings per share (EPS), but if the mobilized capital is efficiently reinvested in digitization, network expansion, and improved profit margins, the company’s intrinsic value will increase over the long term.
In a recently published report, Fitch Ratings expects most Vietnamese banks to continue accumulating capital in the next 12–18 months due to their strong internal capital generation (ICG) capacity, supported by high profit retention and planned capital increases by some banks. However, Fitch also warns that if credit growth accelerates too rapidly, the generated capital may not be sufficient to offset the impact, eroding the capital built up in recent years.
In reality, paying dividends in shares, as practiced by CTG, HDB, ACB, and SHB, helps retain profits to increase charter capital and improve the CAR while providing a foundation for expanding credit limits and enhancing long-term shareholder value. As the SBV moves away from “credit room” control and focuses on safety indicators, banks with high CARs, low loan-to-deposit ratios (LDRs), and reasonable capital costs will have a competitive edge while optimizing net interest margins (NIMs).
Returning to SHB, the bank’s continuous efforts to enhance its financial capacity, align with international standards like Basel III, and build a robust capital strategy demonstrate a transformation from a bank with scale to one with quality.
 Chairman Do Quang Hien shared his frank yet cautious thoughts on the market’s expectations for SHB
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At the 2025 Annual General Meeting of Shareholders, Chairman Do Quang Hien candidly yet cautiously addressed the market’s expectations for SHB. “Regarding the stock price, I am delighted that shareholders positively evaluate SHB, but I also acknowledge the fact that SHB’s actual value is much higher than its current market price. However, everyone has their own assessment and investment decision. We fully respect that,” he stated.
This message conveys the management’s strong internal confidence in the company’s valuation while indirectly assuring the market that the stock price will eventually reflect its true value if the financial foundation continues to strengthen and shareholders accompany the bank’s long-term growth strategy.
– 18:58 13/08/2025
“SHB and SHS Stocks Plummet After Do Quang Vinh’s August Address”
“SHB and SHS stocks have been the talk of the town in the financial world, experiencing a surge in trading volume and witnessing a remarkable rise in their share prices.”
“SHB Shareholders Rejoice: Market Cap Hits $3 Billion Milestone, 13% Dividend Payout on August 19”
“SHB shareholders are on a roll with consecutive dividend payouts! Following a generous 5% cash dividend in June, the company has announced an additional 13% stock dividend. This positive news comes on the back of a promising upward trajectory for the company’s stock performance, much to the delight of its investors.”
The Stock Market Surge: Unraveling the Secrets of Comprehensive Transformation and Sustainable Business Success
Over the past two months, SHB stock has surged with market-leading liquidity, attracting foreign investment. For years, SHB has consistently paid dividends at a rate of 10-18%. Recently, SHB announced breakthrough business results, showcasing significant changes in its strategy implementation.
The Stock Market Breakthrough: Unraveling the Power of Holistic Transformation and Sustainable Business Strategies
Over the past two months, SHB stock has surged with market-leading liquidity, attracting foreign investment. For years, SHB has consistently paid dividends at a rate of 10-18%. Recently, SHB announced breakthrough business results, showcasing significant changes in its strategic transformation implementation.
SHB Shareholders’ Meeting: Gifts Distributed to Attendees, Near 1,400 Present Before Opening
Today afternoon, April 25, Saigon – Hanoi Commercial Joint Stock Bank (SHB) held the 2024 Annual General Meeting of Shareholders at the Melia Hotel on Ly Thuong Kiet Street, Hoan Kiem District, Hanoi.
