Banks set to boost capital and reward shareholders

Banks set to boost capital and reward shareholders

Several Vietnamese banks are moving to boost their charter capital through share dividend distributions, aiming to reinforce financial strength and competitiveness while still rewarding shareholders with cash payouts.

On October 20, TPBank’s Board of Directors approved a resolution to increase its charter capital in 2025 via the issuance of shares as dividends, a plan previously endorsed at the bank’s 2025 AGM. The record date for shareholder entitlement is set for October 31.

Under the plan, TPBank will issue more than 132 million new shares for dividend payments at a 5 per cent ratio, meaning shareholders will receive five additional shares for every 100 held.

This will increase the bank’s charter capital from approximately $1.06 billion to over $1.1 billion. With a face value of VND10,000 ($0.4) per share, the total par value of the issuance will be close to approximately $52.8 million. The additional capital will be allocated for investments in physical infrastructure, IT systems development, and medium- to long-term capital supplementation to support business operations.

On October 17, VietinBank announced a board resolution to raise its charter capital through a share dividend issuance, utilising retained earnings from previous years. Prior to that, the State Bank of Vietnam approved a state capital injection plan for VietinBank on October 8, following a government directive issued on October 1 authorising the bank’s share-based dividend payment. VietinBank plans to issue nearly 2.4 billion shares to pay dividends – equivalent to an issuance ratio of 44.63 per cent.

Post-issuance, the bank’s charter capital will rise from $2.14 billion to over $3.1 billion. The issuance is scheduled to take place sometime in the fourth quarter of this year or the first quarter of 2026.

All newly raised capital will be deployed into core business activities, strategically allocated across the bank’s operations to ensure safety, efficiency, and maximum benefit for shareholders. Key investment areas include infrastructure, technology, service development, credit expansion, investments, and other business initiatives.

According to its 2025 business plan, VietinBank expects total assets to grow from 8 to 10 per cent, and pre-tax profit to reach approximately $1.3 billion. The bank currently ranks sixth among Vietnamese banks in terms of charter capital. After the capital increase to more than $3.1 billion, it is expected to climb to fourth place.

In addition to share-based dividends, banks are also distributing cash dividends. Previously, BIDV, Vietcombank, and VietinBank announced their respective record dates for cash dividend payments.

Vietcombank finalised its shareholder list on October 6 with payment scheduled for October 24; BIDV completed its shareholder list on October 15 with payment expected on November 14; and VietinBank also on October 15, with payment scheduled for November 17.

All three banks are paying cash dividends at 4.5 per cent. Vietcombank plans to distribute around $150.4 million on dividend payment, the figure for BIDV comes to more than $126.3 million, and VietinBank approximately $96 million. This marks the first return to cash dividend payments by these banks after a four-year suspension.

Techcombank also finalised its shareholder list on October 1 to pay a 10 per cent cash dividend, with payment scheduled for October 22. The total payout is expected to be approximately $283.4 million.

Since the beginning of the year, eight banks have completed cash dividend payments to shareholders, including LPBank, VIB, VPBank, TPBank, MB, OCB, ACB, and SHB. In total, 12 banks have paid out approximately $1.71 billion in dividends. Among the 12 banks that have paid out cash dividends this year, several stood out with sizeable distributions.

For instance, ACB led the group with a 10 per cent payout, disbursing around $178.6 million. VPBank followed with a 5 per cent dividend, totalling about $158.6 million, while VIB paid out 7 per cent, equivalent to $83.4 million.

These figures reflect a strong year for shareholder returns, underscoring the robust performance and growing financial capacity of many Vietnamese banks in 2025.

VIR