Vietnamese banks (VIB) to offer high dividends in 2025

Vietnamese banks (VIB) to offer high dividends in 2025

Several banks are planning to distribute high dividends, reflecting their strong financial performance and signaling confidence in the country’s economic outlook.

VIB sets a profit before tax of VNĐ11.02 trillion in 2025, up 22 per cent year-on-year. — Photo courtesy of the bank

As Việt Nam's banking sector gears up for the 2025 annual general meeting season, shareholders prepare to receive a pleasant surprise. 

Several banks are planning to distribute high dividends, reflecting their strong financial performance and signaling confidence in the country’s economic outlook.

Dividend payout ratios are expected to range from 20 per cent to 35 per cent, some of the highest levels in these institutions' histories.

Vietnam International Commercial Joint Stock Bank (VIB) is one of the frontrunners, scheduling its meeting for March 27 in HCM City. The bank intends to distribute a 7 per cent cash dividend and issue bonus shares at a 14 per cent ratio to existing shareholders. 

VIB also plans to issue 7.8 million shares under the Employee Stock Ownership Plan (ESOP), aimed at retaining and motivating top talent.

These distributions are set to increase VIB's charter capital by 14.26 per cent, from approximately VNĐ29.79 trillion (US$1.2 billion) to over VNĐ34.04 trillion ($1.34 billion). 

This capital boost will help fuel the bank's growth ambitions, supporting credit expansion, investments in liquid assets, infrastructure improvements and network expansions. 

The bank is targeting a profit before tax of VNĐ11.02 trillion in 2025, a 22 per cent increase year-on-year, while growing total assets to VNĐ600.35 trillion, with credit growth of 22 per cent and capital mobilisation growth of 26 per cent.

It plans to keep its non-performing loan (NPL) ratio below 3 per cent.

Saigon Hanoi Bank Commerical Joint Stock Bank (SHB) is moving ahead with a robust dividend distribution plan. 

On February 26, SHB finalised the list of shareholders eligible for the second phase of its 2023 dividend payout, which includes an 11 per cent stock dividend. This translates to 11 new shares for every 100 shares held, with the bank planning to issue over 402.8 million new shares for this purpose.

Meanwhile, industry giants like VietinBank, Vietcombank, BIDV, MB Bank, VPBank and Nam Á Bank are also stepping up their dividend game. Planned payout ratios range from 20 per cent to as high as 35 per cent.

Such generous distributions demonstrate these banks' commitment to sharing their success with investors while reinforcing their financial stability.

The substantial dividend payouts reflect the banking sector’s resilience and its ability to navigate global economic uncertainties. 

Strong credit growth, effective risk management and Việt Nam’s steady economic expansion have all contributed to these banks’ stellar performance. By rewarding shareholders so handsomely, these institutions are not only boosting investor confidence but also making themselves more attractive to both domestic and foreign investors.

However, the large-scale issuance of shares can result in stock dilution, impacting earnings per share (EPS). As a result, investors must carefully consider the immediate benefits alongside the bank's potential for future growth. 

Bizhub