ABBank kicks off capital increase plan with 15% stock dividend

ABBank kicks off capital increase plan with 15% stock dividend

An Bình Commercial Joint Stock Bank (ABBank, UPCoM: ABB) has begun paying a 15 per cent stock dividend to existing shareholders, marking the first step in a comprehensive capital raising plan that will lift its charter capital by more than VNĐ6 trillion (US$228.1 million) to over VNĐ20 trillion ($760.3 million).

ABBank is strengthening its financial capacity to support its next phase of growth. — Photo courtesy of the bank

An Bình Commercial Joint Stock Bank (ABBank, UPCoM: ABB) has begun paying a 15 per cent stock dividend to existing shareholders, marking the first step in a comprehensive capital raising plan that will lift its charter capital by more than VNĐ6 trillion (US$228.1 million) to over VNĐ20 trillion ($760.3 million).

The move follows confirmation from the State Securities Commission on June 25 that it had received all required documents for ABBank's issuance of nearly 209.6 million shares to pay the dividend. The bank expects to complete the issuance in the first half of July after finalising the remaining regulatory procedures.

Under the plan, shareholders will receive 15 new shares for every 100 shares held. The shares, issued from ABBank's accumulated undistributed profits, will not be subject to transfer restrictions.

The stock dividend marks the first step in ABBank's comprehensive capital increase plan unveiled earlier this year. The three-stage programme also includes a rights issue for existing shareholders and an employee stock ownership plan. Once completed, the bank's charter capital is expected to exceed VNĐ20 trillion, an increase of around 43 per cent from its current level, strengthening the bank's capital base to support long-term growth.

According to ABBank, the additional capital will enhance its financial capacity, create greater room for credit expansion and reinforce its competitiveness in an increasingly challenging banking market.

The capital expansion plan is underpinned by strong earnings momentum. In the first quarter of 2026, ABBank reported pre-tax profit of VNĐ1.5 trillion ($57.1 million), achieving roughly one-third of its full-year target within the first three months of the year. The bank also ranked among the country's top 10 lenders by trailing four-quarter return on equity (ROE), reflecting the results of its restructuring efforts, digital transformation strategy and business expansion.

For 2026, ABBank targets total assets of VNĐ291 trillion ($11.1 billion), customer deposits exceeding VNĐ247 trillion and outstanding loans of nearly VNĐ139 trillion. It also aims to keep its non-performing loan ratio below 1.5 per cent, improve its current account savings account ratio and maintain a loan-to-deposit ratio below 70 per cent.

Alongside the capital increase, ABBank is preparing to transfer its listing from UPCoM to the Ho Chi Minh Stock Exchange, a key strategic objective in its next phase of development.

The bank said raising charter capital above VNĐ20 trillion is a prerequisite for the planned listing transfer. Moving to the country's largest stock exchange is expected to enhance transparency, broaden access to domestic and international institutional investors, including ETFs and index funds, improve liquidity of ABB shares, strengthen its market position, and create long-term value for shareholders. 

Bizhub