Dividend payment in cash is not allowed by the State Bank of Vietnam (SBV) to focus on reducing interest rates, banks turned to share dividends, up to 30%.
On June 16, Asia Commercial Joint Stock Bank (ACB) will conduct the Annual general Meeting of Shareholders (AGM) in 2020. According to the newly announced agenda of the meeting, the bank plans to increase charter capital from 16.627 trillion dong to 21.615 trillion dong in 2020 via issuing shares to pay 30 percent dividend. Accordingly, shareholders who currently own 10 shares will receive three new shares. It is expected to complete in quarter IV/2020. Previously, ACB planned to pay a dividend of 30 percent in 2019 by shares and in cash.
However, at the request of SBV, banks were not allowed to pay cash dividends to focus on supporting interest rates for businesses, so ACB switched to paying all dividends by shares. In addition, the bank will submit to shareholders for approval the transfer of listing registration of ACB shares from Hanoi Stock Exchange (HNX) to Hochiminh Stock Exchange (HOSE).
On June 13, HCM City Development Bank (HDBank) will conduct the annual general meeting of shareholders (AGM) in 2020 to submit to shareholders for approval of the 2020 plans to increase capital to over 6.278 trillion dong from stock dividends and bonus share issuance. The charter capital of HDBank after completing the increase according to the plan of 2020 is more than 16.088 trillion dong. Issuing subjects are the shareholders named in the list of shareholders at the closing date of the list of exercising right to receive share dividends and bonus shares, which is in 2020.
Also at the Annual general Meeting of Shareholders in 2020, ACB will submit to shareholders for approval of the plan of issuing international bonds with a maximum volume of 10 percent of total customer deposits.
Meanwhile, HDBank is expected to issue bonds overseas under the euro Medium Term Note programme in USD, expected to mobilise $1 billion and expected issuance time is 2020-2024, the business authorises the Board of directors to choose a specific time. The bonds are issued to international investors outside the US and listed on the Singapore Stock Exchange.
In addition, the international bond issuance plan, HDBank also submitted to shareholders for approval of the plan to issue up to 5,000 convertible bonds of US dollar and/or 10,000 convertible bonds of VND. The total issuance value is expected to be up to $500 million or 10 trillion dong. According to the plan submitted to the general Meeting of Shareholders, HDBank is expected to earn 5.661 trillion dong by 2020, up 13 percent over the previous year; total assets of 305.372 trillion dong; credit increased by 16 percent and capital mobilisation increased by 35 percent over the previous year.
In the first quarter of 2020, HDBank’s consolidated operating income reached 3.151 trillion dong, up 27.8 percent compared to the same period last year. Profit before tax reached 1.251 trillion dong, up 13.5%. As of March 31, total assets of the bank reached 231.774 trillion dong. Bad debt ratio of the bank was controlled at 1.08%.
According to the plan of the shareholder meeting, in 2020, the bank aims to increase total assets by 12%, customer deposits by 12%, and credit by 11.75%; control bad debt below two percent. Consolidated profit before tax target is about 7.636 trillion dong.
