VPBank (VPB) stock hits ceiling on G-Dragon boost

VPBank (VPB) stock hits ceiling on G-Dragon boost

The May 14 trading session witnessed a surge in both the VN-Index and market liquidity, with the benchmark index climbing 16.18 points to close at 1,309.73, while trading value exceeded the $1 billion mark.

A major contributor to this rally was VPBank’s stock, VPB, which hit its ceiling price of $0.76 per share, marking its highest level in over a month with 96 million shares matched.

VPB was the strongest gainer among VN30 constituents and led the entire market in trading volume.

The bullish momentum in VPB came shortly after VPBank announced its upcoming international music festival, VPBank K-Star Spark in Vietnam, slated for late June in Hanoi. The event will feature two of South Korea’s biggest stars, G-Dragon of Big Bang and CL, the former leader of 2NE1. The participation of these global artists is expected to generate significant brand impact for the bank among younger demographics.

Beyond branding goals, VPBank is also leveraging the event to stimulate its credit card business. Specifically, VPBank credit cardholders will be granted early access to ticket sales, a perk likely to incentivise many K-pop fans to open new accounts in pursuit of concert tickets. This marks a strategic move by the bank to drive retail revenue by integrating finance and entertainment.

VPB’s sharp rise also coincided with the ex-dividend date for its upcoming cash dividend, scheduled for May 15. With a payout ratio of 5 per cent on par value, equivalent to $0.02 per share, the total dividend VPBank plans to distribute amounts to approximately $158.7 million.

This marks the third consecutive year that VPBank has paid cash dividends. In 2024, the bank disbursed $317.4 million in cash dividends at a 10 per cent payout ratio. In total, VPBank has allocated nearly $800 million to cash dividends over the past three years.

Previously, VPBank’s management announced a five-year commitment starting from 2023 to maintain regular cash dividend payments.

Speaking at the 2025 AGM, VPBank chairman Ngo Chi Dung emphasised that the dividend policy is designed to balance shareholder expectations with the bank’s capital needs for sustaining high growth in line with its strategic roadmap.

According to Dung, capital is a vital factor in banking operations and must be allocated to support long-term growth objectives while also meeting shareholders’ desire for cash returns.

"From 2010 to 2022, we refrained from paying dividends to focus on building the bank, and we achieved above-industry-average growth. In 2022, striking a balance between long-term expansion and shareholder returns, we initiated cash dividend payments," added Dung. "Over the past three years, VPBank has distributed nearly $800 million to shareholders, satisfying their needs while still securing sufficient capital for strong growth going forward."

He added that VPBank will maintain this cash dividend policy for at least the next two years. However, the actual payout rate will depend on annual business performance, fundraising conditions, and growth targets.

"I can confidently confirm that VPBank will continue paying cash dividends in the fourth and fifth years," emphasised Dung.

Regarding business performance, VPBank posted strong results in the first quarter. Consolidated operating income reached nearly $624 million, up 16.1 per cent on-year. Consolidated pre-tax profit came in at $200.6 million, marking a 20 per cent increase.

As of the end of March, total assets stood at approximately $39.76 billion, reinforcing its position as one of Vietnam’s largest private banks.

Nonetheless, from a technical standpoint, VPB has been contained within a broad trading range since April 2023. The stock has mostly fluctuated between $0.67 and $0.82 per share since then, reflecting a drawn-out accumulation phase with no clear breakout signal to confirm a sustained uptrend.

VIR