SHB announces stock dividend distribution at 11% rate
SHB announces stock dividend distribution at 11% rate
Following this dividend issuance, SHB’s charter capital will rise to VNĐ40.6 trillion, reinforcing its position as one of Việt Nam’s five largest private banks.
Transactions at SHB in Hà Nội. SHB’s charter capital will rise to VNĐ40.6 trillion, reinforcing its position as one of Việt Nam’s five largest private banks. — Photo courtesy of the bank |
Saigon - Hanoi Commercial Joint Stock Bank (SHB) has officially revealed the closing date for its shareholder list, which will determine eligibility for the 2023 stock dividend payout at a rate of 11 per cent.
Following this dividend issuance, SHB’s charter capital will rise to VNĐ40.6 trillion, reinforcing its position as one of Việt Nam’s five largest private banks.
The increase in capital is critical to the bank’s strategic objectives: strengthening its financial capabilities, enhancing competitiveness in the global market and delivering consistent value to its shareholders.
Under the SHB board resolution, February 27, 2025 marks the final registration date for shareholders to be eligible for the 2023 stock dividends. The bank’s shareholders will receive an 11 percent dividend in the form of new shares. Specifically, for every 100 shares held, shareholders will be entitled to 11 additional shares.
This dividend payout follows the approval of SHB’s share issuance for dividends by the State Securities Commission earlier this year. The total dividend for 2023 is set at 16 per cent, combining 5 per cent in cash and 11 per cent in stock. SHB already completed the cash portion of the dividend in August 2024, fulfilling part of its commitment to shareholders.
SHB has a strong track record of rewarding shareholders, regularly paying dividends in the range of 10 to 18 per cent over the years. This consistent payout reflects SHB’s dedication to shareholders, while simultaneously reinforcing its capital base and maintaining safe, sustainable and effective development.
The bank is also enhancing its management practices to meet international standards, positioning itself for future growth.
The increase in charter capital will not only strengthen SHB's financial position but also serve as a strategic advantage as the bank seeks to expand its funding sources. The ability to attract capital from both individual investors and businesses, as well as from the bond market, will be vital to supporting the Government’s priority areas, such as green credit and other strategic sectors.
SHB has exceeded its financial targets for 2024, showing a strong performance across key metrics. The bank recorded a pre-tax profit of VNĐ11.5 trillion, marking a 25 per cent increase from 2023 and surpassing the profit targets set at the beginning of the year. The cost-to-income ratio (CIR) stands at a record-low 24.5 per cent, among the lowest in the banking sector, underlining the bank’s efficient operational model.
By the end of 2024, SHB's total assets had grown to over VNĐ747 trillion, an increase of 18.5 per cent from 2023, while outstanding credit reached nearly VNĐ534 trillion, with an impressive 18.2 per cent growth rate.
In terms of capital safety and risk management, SHB has consistently met and exceeded regulatory requirements. The bank’s capital adequacy ratio (CAR) is above 12 per cent, in line with Basel II standards, and its liquidity ratio is compliant with Basel III guidelines. Moreover, SHB has successfully met its targets for controlling bad debts, a key priority outlined by its General Meeting of Shareholders.
SHB’s ongoing commitment to growth and stability is reflected in its solid financial foundation and strategic direction. With a robust capital structure and a clear focus on risk management and profitability, SHB is well-positioned for continued success, ensuring long-term value for its shareholders and contributing to the broader development of the Vietnamese banking sector.
