HDBank has just been approved to increase its charter capital to nearly 30,000 billion VND.

Ho Chi Minh City Development Joint Stock Commercial Bank ( HDBank , HoSE: HDB) has just been approved by the State Bank to pay dividends in shares at a rate of 15% and increase charter capital to VND29,276 billion.

HDBank is currently completing the final procedures to pay dividends in shares to shareholders. After completing this profit distribution plan, HDBank's charter capital will increase by a maximum of VND3,772 billion, from VND25,303 billion to VND29,276 billion.

The charter capital increase plan was approved by the 2023 Annual General Meeting of Shareholders, accordingly, HDBank plans to increase its charter capital by a maximum of VND 3,773 billion through the issuance of shares to pay dividends in 2022. The dividend payment ratio is 15%, meaning that shareholders owning 100 shares will receive 15 additional issued shares. The expected implementation time is in the third quarter of 2023.

At the same time, HDBank also plans to increase its charter capital by VND 200 billion through the issuance of 20 million shares to employees (ESOP), which was approved by the 2021 Annual General Meeting of Shareholders.

If the capital increase plan in 2023 is successful, HDBank will continue its 3 consecutive years of increasing its charter capital from 2020-2022. Accordingly, in these 3 years, the bank will pay dividends in shares and HDBank's charter capital will increase from VND 9,810 billion in 2019 to more than VND 25,300 billion by the end of 2022.

With this capital, HDBank will rank 10th in the Top banks with the largest charter capital on the stock exchange.

Regarding business performance, in the first quarter of 2023, the bank recorded pre-tax profit of VND 2,743 billion, an increase of 8.5% over the same period.

The bank's total operating income in the first three months of the year reached more than VND5,600 billion, up 10.4% over the same period last year.

Of which, net interest income increased by nearly 20%, reaching VND4,841 billion. Net revenue from services increased by 11.3% over the same period, reaching VND677 billion. During the period, the bank set aside more than VND956 billion for credit risk provisions, up 42.8% over the same period.

As of March 31, 2023, HDBank's total assets increased by 10% compared to the beginning of the year, to VND 458,800 billion.

However, debt quality deteriorated as the ratio of bad debt to outstanding loans increased from 1.67% at the beginning of the year to 1.85% .

Source