Stocks and confidence surges amid 2025 AGM season

Stocks and confidence surges amid 2025 AGM season

Vietnam’s banking AGM season is being buoyed by growing investor confidence and strong corporate disclosures, despite lingering global uncertainties.

Bank stocks continued to post gains in recent sessions, with notable contributions from HDBank and Kien Long Bank on April 24, supporting the VN-Index to surpass the 1,223-point threshold.

The previous trading day on April 23 also saw the same trajectory. The VN-Index rose by 13.87 points to close at 1,211, as the Ho Chi Minh Stock Exchange saw 416 stocks gain value and 120 decline. The banking sector performed particularly well, with Techcombank leading the way, increasing by 3.78 per cent and contributing 1.6 points to the overall index.

Despite a 1.5 per cent decline during the session, SHB maintained its highest trading level in three years. SSB also saw a drop of 3.65 per cent, while STB and VCB fell by 1.11 and 0.85 per cent, respectively.

Investor confidence in banking stocks has been strong since April 21. For instance, STB rose by 4.93 per cent to $1.62, its highest price in six sessions, with over 34 million shares traded, worth more than $52 million.

SHB also continued its upward momentum on April 21, rising by 2.72 per cent, and TPBank also saw positive movement, increasing by 2.65 per cent.

According to Nguyen The Minh, head of Research and Development for Retail Clients at Yuanta Securities Vietnam, many investors view the AGM season as an opportunity to take on new information, particularly from banks that are likely to announce strong dividend payouts or capital-raising plans.

“Investors are expecting a wave of cash dividends and capital raising plans,” Minh told VIR. “Some major banks are actively restructuring weaker institutions. To support such restructuring, capital is required, making a capital-raising wave likely this year, especially among state-owned and large commercial banks.”

At its AGM on April 22 in Ho Chi Minh City, HDBank set a target of $847 million in pre-tax profit, marking a 27 per cent increase compared to 2024. The bank also projects total assets to reach approximately $35.6 billion and credit outstanding to hit around $23.2 billion. It aims to keep its non-performing loan (NPL) ratio below 2 per cent.

Meanwhile, SHB also drew significant attention at its AGM on April 22 in Hanoi. The bank revealed a 2025 business plan targeting a profit before tax of $580 million, a 25 per cent increase from 2024. SHB also set a target for total assets to exceed $33.28 billion and aimed to keep NPLs below 2 per cent.

In 2024, SHB exceeded its key performance targets, posting a 25.2 per cent rise in profit before tax to $462 million. The bank’s total assets reached $29.90 billion, with outstanding credit at $21.36 billion. SHB’s cost-to-income ratio stood at just 24.4 per cent, one of the lowest in the sector, thanks to its strong focus on digitalisation and technology adoption.

Chairman Do Quang Hien said the bank’s solid performance over the past year reflects shareholders’ strong confidence in its long-term sustainable development strategy.

“I am pleased to see SHB receiving positive recognition from our shareholders,” he said. “However, the current share price on the market has yet to fully reflect the bank’s intrinsic value. With our robust 2024 results, clearly defined objectives for 2025, and a long-term strategic roadmap, I believe investors have every reason to reassess SHB’s growth potential.”

Meanwhile, Ngo Thu Ha, CEO of SHB, expressed strong confidence in the bank’s target of 16 per cent credit growth for 2025.

“We are deploying a comprehensive suite of financial solutions tailored to effectively serve a wide range of customer segments. The bank’s credit expansion strategy remains closely aligned with national priorities, focusing on key sectors including infrastructure development, green financing, high technology, and logistics,” Ha said.

VIR