Many banks are increasing their charter capital.

Many banks issue dividend-paying shares and ESOP shares to further increase their charter capital, enhance their financial capacity, and improve their competitiveness in the market.

Continuously increasing capital

VietABank (stock code: VAB) will finalize the list of shareholders on August 15th to issue additional shares to increase its share capital from equity. The bank plans to issue over 276.4 million shares to existing shareholders, at a ratio of 100:51.19, meaning that shareholders owning 1 share will receive 1 right, and for every 100 rights, they will receive 51.19 additional shares. Any fractional shares (if any) will be canceled.

The capital for the issuance comes from accumulated undistributed profits as of December 31, 2024 (over VND 2,604 billion) and the Capital Reserve Fund (over VND 160 billion). After the issuance, VietABank's charter capital will increase by VND 2,764 billion, from nearly VND 5,400 billion to VND 8,164 billion.

OCB (stock code: OCB) has also set August 11, 2025 as the final registration date for shareholders to exercise their right to receive newly issued shares resulting from a capital increase from equity. Accordingly, OCB plans to issue nearly 197.3 million shares to increase its share capital from equity at an issuance ratio of 8% (shareholders owning 100 shares will receive 8 new shares).

The funding source is from equity capital as of December 31, 2024, as determined by the audited separate and consolidated financial statements after the allocation of funds as stipulated. Prior to this, OCB finalized the list of shareholders on July 18, 2025, to pay the 2024 cash dividend at a rate of 7%. The payment date for the 2024 cash dividend (payment date) is August 7, 2025. This is the first year OCB has paid a cash dividend since listing on the stock exchange.

SHB (stock code: SHB) recently approved the implementation of a plan to increase its charter capital from the 2024 dividend distribution in the form of shares to existing shareholders. Previously, SHB's capital increase plan had been approved by the State Bank of Vietnam. According to the plan, SHB will issue a maximum of nearly 528.5 million shares, equivalent to an issuance rate of 13% of the total outstanding shares (shareholders owning 100 shares will receive an additional 13 shares). These newly issued shares will not be subject to transfer restrictions.

The capital used to issue dividend-paying shares comes from after-tax profits after the allocation of funds in 2024. It is expected that after a successful issuance, the bank's charter capital will increase by nearly VND 5,285 billion, from VND 40,657 billion to VND 45,942 billion.
Previously, SHB completed the payment of cash dividends for 2024 at a rate of 5% on June 20, 2025. With nearly 4.066 billion shares outstanding, SHB spent 2.033 billion VND to pay cash dividends to shareholders.

Many banks have increased their charter capital.

Meanwhile, MSB (stock code: MSB) has also approved the implementation of a capital increase in 2025 through the issuance of shares to pay dividends to shareholders. According to the plan, MSB will issue a maximum of 520 million shares, equivalent to 20% of the total outstanding shares. These newly issued shares will not be subject to transfer restrictions. It is expected that after the successful issuance, the bank's charter capital will increase by VND 5,200 billion, from VND 26,000 billion to VND 31,200 billion. The issuance is expected to take place in 2025, after approval from the State management agency.

In mid-July 2025, Nam A Bank (stock code: NAB) announced the results of its share issuance to increase its equity capital in 2025. Specifically, the bank issued over 343 million shares to 7,502 shareholders, increasing its charter capital from nearly VND 13,726 billion to VND 17,157 billion, and the number of outstanding shares from over 1.37 billion to 1.71 billion. The issuance was completed on July 11, 2025. The expected share transfer time is in August 2025.

The issuance will be sourced from equity capital (undistributed after-tax profits and other funds as stipulated by law as of December 31, 2024, based on the audited consolidated financial statements for 2024). In addition, Nam A Bank also plans to issue 85 million shares, increasing its charter capital by VND 850 billion. The issuance will target employees of the bank and its subsidiaries. The expected offering price is VND 10,000 per share, exactly equal to the par value...

Meet the capital adequacy ratio

Similarly,VIB (stock code: VIB) has just announced a change in the number of voting shares from nearly 2.98 billion to over 3.4 billion, after completing two share issuances including stock dividends and employee stock ownership plans (ESOP), thereby officially increasing its charter capital to over VND 34,040 billion, corresponding to a capital increase ratio of 14.26%. Specifically, VIB issued over 417 million bonus shares to 33,684 shareholders at a ratio of 14% (corresponding to 100 shares receiving an additional 14 shares). The capital for this issuance was sourced from the capital reserve fund and undistributed after-tax profits as of the end of 2024.

After distributing over 417 million bonus shares to shareholders and issuing ESOP shares to over 1,300 employees, VIB's charter capital increased to over VND 30,040 billion. In addition, the bank successfully distributed 7.8 million ESOP shares to 1,372 employees. Because the actual number of recipients was lower than the initial list of 1,406, 107,337 shares were cancelled and subsequently allocated to employees on the list.

The remaining fractional shares from the two issuances (a total of 10,473 shares) were offered privately by VIB to individual Truong Le Ngoc Tram at a price of VND 17,034 per share, raising nearly VND 180 billion. Previously, VIB had received approval from the State Bank of Vietnam to increase its capital by nearly VND 4,249 billion through the issuance of shares to existing shareholders (nearly VND 4,171 billion) and ESOP (VND 78 billion). The transfer of these new shares is expected to be completed before September 30, 2025.

Associate Professor Dr. Nguyen Huu Huan from the University of Economics Ho Chi Minh City commented that the above results demonstrate the banks' determination to apply international standards, contributing to increased efficiency and greater capital safety. Compared to Basel II, Basel III has many new and stricter requirements. Implementing Basel III also requires significant financial investment and thorough preparation from the banks.

The Governor of the State Bank of Vietnam (SBV) has just issued Circular No. 14/2025/TT-NHNN regulating capital adequacy ratios for commercial banks and branches of foreign banks. Circular 14 provides guidance on how to determine and the minimum values ​​of capital adequacy ratios that banks must maintain, including the Tier 1 core capital ratio, the Tier 1 capital ratio, and the minimum capital adequacy ratio.

Accordingly, commercial banks without subsidiaries or branches of foreign banks must maintain individual capital adequacy ratios including: a minimum Tier 1 core capital ratio of 4.5%; a minimum Tier 1 capital ratio of 6%; and a minimum capital adequacy ratio of 8%. For commercial banks with subsidiaries, the individual and consolidated capital adequacy ratios must also meet the corresponding levels: a minimum Tier 1 core capital ratio of 4.5%, a minimum Tier 1 capital ratio of 6%, and a minimum capital adequacy ratio of 8%.

The circular introduces, for the first time, regulations on capital buffers, including the capital preservation buffer (CCB), the counter-cyclical capital buffer (CCyB), and the capital buffer for systemically important commercial banks. Specifically, the capital preservation buffer (CCB) ratio is the remaining portion of Tier 1 core capital after a bank has fully met all capital adequacy ratios (including Tier 1 core capital ratio, Tier 1 capital ratio, and capital adequacy ratio).
The bank is only permitted to distribute the remaining profit, as determined by the bank in accordance with the law on financial regulations, in cash, provided it maintains full compliance with the following ratios over the years:

In the first year, the CCB was 0.625%; the Tier 1 core capital ratio (including CCB) was 5.125%; the Tier 1 capital ratio (including CCB) was 6.625%; and the capital adequacy ratio (CAR, including CCB) was 8.625%. In the second year, the CCB increased to 1.25%; the Tier 1 core capital ratio was 5.75%; the Tier 1 capital ratio was 7.25%; and the CAR was 9.25%. In the third year, the CCB reached 1.875%; the Tier 1 core capital ratio was 6.375%; the Tier 1 capital ratio was 7.875%; and the CAR was 9.875%. From the fourth year onwards, the CCB reached a maximum of 2.5%; the Tier 1 core capital ratio was 7%; the Tier 1 capital ratio was 8.5%; and the CAR was 10.5%. The circular takes effect from September 15th.

Source: https://baodautu.vn/nhieu-ngan-hang-tang-von-dieu-le-d342548.html