Banks and the story of dividend distribution

The annual general meeting season is drawing to a close, with numerous banks holding their meetings in the last week of April 2026. One of the most关注ed pieces of information remains the dividend payout ratio of banks. To date, Techcombank leads the system with a dividend payout ratio of 67%. Beyond the numbers, there are many other "stories" surrounding bank dividends.

A perspective from Techcombank - the leader

2025 marks a pivotal phase for Techcombank, moving from its leading market position to creating a comprehensive financial ecosystem operating on a modern and robust digital platform.

Consolidated pre-tax profit (PTP) reached a record high of VND 32,538 billion, an increase of 18.16% compared to 2024, exceeding the plan (VND 31,500 billion). Techcombank led in operational efficiency, with its return on assets (ROA) remaining stable at 2.4%. Total operating income (TOI) for the year reached VND 53.4 trillion, an increase of 13.6%.

The bank's total assets reached over VND 1.19 trillion, an increase of 21.82% compared to 2024, and the non-performing loan ratio (groups 3-5) decreased from 1.17% to 1.13%, placing it among the lowest in the market; the non-performing loan coverage ratio increased to 127.9%. The capital adequacy ratio (CAR) remained healthy at 14.6%, nearly double the minimum required by regulations.

Techcombank announced its Q1/2026 business results with many new records, such as pre-tax profit reaching VND 8,900 billion, an increase of 22.6% compared to the same period last year; Net Income from Services (NFI) setting a new historical peak, reflecting the maturity of the comprehensive ecosystem with a 47% increase to VND 3,600 billion…

Techcombank's consistently exceeding business targets has led to the General Meeting's proposal for a dividend payout ratio of up to 67%. However, only 7% of this 67% will be in cash (equivalent to VND 700 per share), while the remaining 60% will be through the issuance of new shares from equity capital to existing shareholders (shareholders owning 100 shares will receive 60 shares). The issuance is expected to be completed in 2026 or until the Bank completes all procedures as required by law.

This is the third consecutive year that Techcombank has paid dividends. Previously, in 2024 – after a 10-year wait – shareholders of the bank received dividends for 2023 at a rate of 15%; in 2024, it was 10%, both in cash; and this year, the dividend payout ratio reached a record high of 67% – mainly in shares.

High profits - high dividends?

The "Golden List" of the top 10 commercial banks with the highest profits in 2025, ranked from highest to lowest, includes: Vietcombank, VietinBank, BIDV, MB, Techcombank, VPBank, HDBank, ACB,SHB , and LPBank. Among these banks, Techcombank (stock code TCB) leads in dividend payout ratio, reaching 67% in 2025. VietinBank (CTG) is second highest at 44.6%. MB (MBB) is third at 35% (32% in shares, 3% in cash); followed by VPBank (VPB) with a total of over 31% (5% in cash, 26% in shares). HDBank (HDB) and LPBank (LPB) both proposed a 30% dividend payout ratio. However, while HDBank shareholders received the entire dividend in shares, LPBank paid it entirely in cash. With this rate, Loc Phat Bank is currently the bank announcing the highest cash dividend payout in the system.

The remaining two banks in the top 10 most profitable banks have the following payout ratios:ACB (ACB) is expected to have a total of 20% (7% in cash, 13% in shares); SHB: a ratio of 16% (including 6% in cash and 10% in shares).

Another remarkable story concerns the dividend payments of Vietcombank - the leading bank in terms of profitability for many years.

At the shareholders' meeting on April 24th, Vietcombank Chairman Nguyen Thanh Tung stated that the bank is implementing dividend payment plans from accumulated profits up to 2023 and is currently submitting a plan to the competent authorities for the use of approximately VND 44,500 billion. Previously, in October 2025, Vietcombank distributed cash dividends for 2024 at a rate of 4.5% (VND 450 per share), totaling VND 3,760 billion. In March 2025, the bank also finalized the list of shareholders to issue over 2.76 billion shares to distribute dividends to existing shareholders at a rate of 49.5%. The capital for the issuance is sourced from retained earnings after tax, after the allocation of accumulated funds up to the end of 2018 and retained earnings for 2021. Vietcombank is the most profitable bank in the system; however, due to the specific nature of its operations as a state-owned commercial bank (the State Bank of Vietnam manages the majority of VCB's charter capital, approximately 80%), the dividend payment process requires approval from multiple regulatory bodies, thus prolonging the approval time.

BIDV's General Shareholders' Meeting approved the profit distribution plan for 2025, focusing on further strengthening financial capacity and increasing charter capital.

Similar to Vietcombank, on April 24th, BIDV (BID) also held its Annual General Meeting of Shareholders and approved the profit distribution plan for 2025, focusing on further strengthening financial capacity and increasing charter capital. From March 2026, BIDV's charter capital will increase to VND 70,214 billion; its market capitalization as of December 31, 2025 will reach VND 273,000 billion (equivalent to USD 10.5 billion), placing it among the largest in the Vietnamese stock market. Regarding the shareholder structure, the State still holds a controlling stake in BIDV (over 80% of charter capital). In 2019, BIDV issued 15% of its shares privately to KEB Hana Bank (South Korea).

In 2025, pre-tax profit of the commercial banking sector is projected to reach VND 35,509 billion, a 15.7% increase compared to 2024; consolidated pre-tax profit is projected at VND 37,788 billion, a 17.8% increase compared to 2024. Of the total undistributed profit of VND 28,459 billion, BIDV plans to allocate over VND 15,179 billion to various funds (capital reserve fund, financial reserve fund, investment and development fund, and reward and welfare fund), leaving approximately VND 13,279 billion. After adjusting for exchange rate differences, the remaining profit before dividend distribution is VND 13,205 billion. This entire profit is expected to be used for stock dividends, thereby increasing charter capital as approved by the regulatory authority.

Source: https://thoibaonganhang.vn/ngan-hang-va-cau-chuyen-chia-co-tuc-181278.html