Banks ramp up capital plans ahead of AGM season

Banks ramp up capital plans ahead of AGM season

Many banks are planning significant charter capital increases during the 2026 AGM season through share issuances, stock dividends and private placements to strengthen financial capacity and support future credit growth.

The 2026 annual general meeting (AGM) season in Vietnam’s banking sector is not only a time for lenders to approve business plans, but also a key moment to shape capital restructuring, strengthen governance capacity and outline long-term development strategies amid intensifying competition.

Many banks have plans to raise charter capital this year.

The State Bank of Vietnam (SBV) has approved a plan allowing SHB to increase its charter capital to a maximum of $2.14 billion, in line with the proposal adopted by shareholders in a November 2025 resolution.

SHB will raise its charter capita through three channels: a public offering to existing shareholders, a private placement to professional securities investors, and an employee stock ownership plan (ESOP).

Once completed, SHB is expected to move into the top four largest private joint-stock commercial banks in Vietnam by charter capital, providing a solid foundation for the next stage of growth.

Meanwhile, Nam A Bank has released documents for its AGM, scheduled to take place on March 20 in Dalat, Lam Dong province.

The bank has set higher targets for 2026, aiming for consolidated pre-tax profit of $248 million, up 18 per cent on-year.

According to the draft plan on capital hike in 2026, Nam A Bank intends to raise more than $217 million through several share issuance schemes, including issuing shares from equity capital, an ESOP scheme, and a private placement.

Under the plan to issue shares from equity capital, the bank expects to issue an additional 343.1 million shares, increasing charter capital by more than $137 million.

The issuance is expected to take place in the second quarter of 2026, after receiving approval from the SBV and the State Securities Commission (SSC).

For the ESOP scheme, Nam A Bank plans to issue 100 million shares, which would raise charter capital by $40 million. The issuance is scheduled for Q2 or Q3 of 2026, pending approval from the SBV and SSC.

Under the private placement plan, the bank intends to offer 100 million shares to strengthen its financial capacity and supplement capital for business operations. The issuance is also expected in Q2 or Q3 of 2026, subject to regulatory approval.

If all three plans are completed, Nam A Bank’s charter capital will increase from $686 million to $904 million.

LPBank is expected to submit a proposal to distribute a 30 per cent stock dividend for 2025, aiming to boost capital while ensuring long-term benefits for shareholders.

ACB is also expected to propose a capital increase through stock dividend payments, alongside its 2026 profit plan and operating budget.

Meanwhile, NCB plans a private share placement worth $400 million, which would raise its charter capital to nearly $1.17 billion to expand lending to corporate and individual clients.

The transaction is expected to take place between Q2 and Q3 of 2026.

Among state-owned lenders, BIDV will hold its 2026 AGM on April 24 in Hanoi. At its 2025 AGM, shareholders approved a plan to increase charter capital by $866 million, raising the bank’s capital from $2.81 billion to $3.67 billion, a 30.8 per cent increase compared with the end of Q1, 2025.

However, by the end of 2025, BIDV had yet to complete any of the three components of this capital increase plan, leaving its charter capital unchanged at $2.81 billion.

Earlier this year, the SBV approved BIDV’s plan to increase charter capital by up to nearly $106 million through a private share placement. The bank has also disclosed extraordinary information regarding board resolutions adjusting several elements of the private placement plan for investors.

Under the revised plan, BIDV intends to offer 263.3 million common shares through a private placement at a price of $1.56 per share, raising more than $410 million. The issuance is expected to be carried out in Q1 of this year. The entire sum raised from the private placement will be used to supplement capital for lending activities in 2026.

The most anticipated “blockbuster” deal, however, is Vietcombank’s plan to sell 6.5 per cent of its equity, which could bring in as much as $1.4 billion. In late January 2025, Vietcombank sent invitations to advisory firms to participate in an independent valuation for the private placement.

Earlier, at its 2025 AGM, the bank’s shareholders approved a plan to sell up to 6.5 per cent of its equity to a maximum of 55 investors during 2025-2026.

VietinBank has also announced the completion of a share issuance to pay dividends from retained profits accumulated in 2009-2016, 2021 and 2022. Following the issuance, the number of voting shares increased from nearly 5.4 billion to nearly 7.8 billion, raising the bank’s charter capital from $2.15 billion to more than $3.11 billion.

The bank has also said it plans to continue issuing shares from retained earnings of 2023 ($503 million) and 2024 (nearly $624 million). If all these plans are completed, VietinBank’s charter capital is expected to exceed $4.2 billion, bringing the lender closer to the group of top lenders in terms of capital scale within Vietnam’s banking system.

VietinBank has also announced that the record date for shareholders eligible to attend its 2026 AGM will be March 24. The meeting is scheduled to take place on April 24 in Hanoi.

One of the agenda items expected to be submitted for approval at the AGM is the plan to list publicly issued bonds in 2026 on the Hanoi Stock Exchange, along with a proposal to increase charter capital through stock dividend payments.

VIR