Race to increase charter capital: Vietcombank retains the throne, private banking group accelerates

Many banks plan to increase their charter capital in 2025 according to the plan approved by the General Meeting of Shareholders (GMS). The State Bank has also recently approved a series of banks to increase their charter capital.

The State Bank of Vietnam (SBV) has just issued a document approving Saigon - Hanoi Bank ( SHB ) to issue shares to pay 2024 dividends to existing shareholders, at a rate of 13%.

Accordingly, SHB will issue 528.5 million shares to pay dividends in 2024. After completion, SHB's charter capital will increase from VND 40,657 billion to VND 45,942 billion, continuing to maintain its position in the top 5 largest private joint stock commercial banks in the system.

Approval to increase capital helps SHB continue to narrow the gap with ACB in the ranking of banks with the largest charter capital in the system.

After being approved by the State Bank to increase capital, ACB issued nearly 670 million new shares to pay dividends to shareholders at a rate of 15% (shareholders owning 100 shares on the record date will receive 15 new shares).

The total issuance value at par value is nearly VND6,700 billion. After the issuance, ACB's charter capital increased from VND44,667 billion to VND51,367 billion.

SHB is the latest bank on the list approved by the State Bank to increase its charter capital. Photo: Nam Khanh

Similarly, the State Bank of Vietnam has just approved VIB to increase its capital by nearly VND4,300 billion through issuing shares to existing shareholders.

After completing the capital increase, VIB's charter capital will increase from more than VND 29,700 billion to more than VND 34,000 billion.

In early June, the State Bank also issued a document approving Vietnam Thuong Tin Commercial Joint Stock Bank ( Vietbank ) to increase its charter capital by a maximum of VND3,781 billion through two rounds of share issuance to existing shareholders.

After being approved to increase capital, Vietbank's charter capital will increase from VND7,139 billion to VND10,919.7 billion.

Previously, the State Bank also approved the increase in charter capital of National Citizen Commercial Joint Stock Bank ( NCB ) from the current VND 11,780 billion to VND 19,280 billion.

According to the capital increase plan, NCB will issue 750 million individual shares with an offering price of no less than VND10,000/share, aiming to increase charter capital by a maximum of VND7,500 billion.

In addition to the banks that have been approved by the State Bank to increase their charter capital as mentioned above, a series of banks have also planned to increase their charter capital this year according to the plan approved by the General Meeting of Shareholders.

Of which, Nam A Bank plans to increase its charter capital from over VND13,700 billion to over VND18,000 billion through issuing shares from equity to pay dividends and issuing ESOP shares.

VietinBank plans to issue nearly 2.4 billion shares to pay stock dividends at a rate of 44.64%. Thereby, charter capital can increase from VND53,700 billion to VND77,671 billion.

Up to now, Vietcombank is the leading bank in the system in terms of charter capital, up to 83,557 billion VND.

VPBank ranked second with charter capital reaching 79,339 billion VND.

Ranked third is Techcombank with charter capital of 70,450 billion VND.

Next is MB with charter capital of 61,022 billion VND.

BIDV and VietinBank ranked fifth and sixth with charter capital reaching VND57,004 billion and VND53,700 billion, respectively.

With 51,638 billion VND, Agribank ranks 7th in the system in terms of charter capital.

ACB ranked 8th with charter capital of VND 51,367 billion.

SHB (after officially increasing its capital) will be ranked 9th with a charter capital of VND45,942 billion. Meanwhile, HDBank will be ranked 10th with a charter capital of VND35,101 billion.

Source: https://vietnamnet.vn/cuoc-dua-tang-von-dieu-le-ngan-hang-nao-but-toc-ai-dan-dau-2425269.html