SHB approved to increase charter capital to US$1.16 billion
SHB was given approval from the State Bank of Viet Nam to increase its charter capital from the current VND19.2 trillion (US$843.2 million) to VND26.6 trillion ($1.16 billion).
Of which, the bank would add VND2 trillion by issuing shares to pay dividends with a rate of 10.5 per cent from its after-tax profit after setting aside funds in 2020. Another VND5.3 trillion would be added to the charter capital by issuing shares to existing shareholders with the offering price of VND12,500 per share.
The charter capital increase aims to improve SHB’s financial potential, expand lending scale, and invest in information technology. Especially, it would help promote the bank's digitisation, realising the goal of becoming a modern retail bank with optimal financial products and services according to Industry 4.0 standards.
Earlier, SHB successfully issued more than 175 million shares to pay the 2019 dividend in May 2021, raising its charter capital to more than VND19.2 trillion.
In the first half of the year, SHB reached before-tax profit of VND3 trillion, posting an 86.5 per cent year-on-year increase, meeting half of its whole year set target. Its return on equity (ROE) reached 24.3 per cent.
As of June 30, its total assets reached VND458 trillion, increasing 11 per cent from the beginning of the year and meeting 99.5 per cent of the set target.
More than 1.9 billion shares of SHB would be moved from the Ha Noi Stock Exchange (HNX) to the Ho Chi Minh Stock Exchange (HoSE) from October 5.
With the capitalisation of over VND51.6 trillion, SHB has been one of the most influential stocks on HNX. The move from listing SHB to HoSE will reduce the market capitalisation of HNX by more than 12 per cent.