Vietcombank aims to complete private placement in 2026

The chairman of Vietcombank (HoSE; VCB) said the state-controlled lender is working with potential investors and is in detailed negotiations, with a view to executing a private placement in 2026, subject to market conditions.

The planned sale of a 6.5% stake was a key topic at the bank’s 2026 annual general meeting on Friday, where shareholders sought updates on progress and pricing, amid recent market speculation.

Chairman Nguyen Thanh Tung said delays were due to disruptions linked to the Covid-19 pandemic and its aftermath, adding that Vietcombank aims to select strategic investors capable of supporting its sustainable development.

The bank has engaged advisers and held discussions with multiple prospective investors. He noted that Japan’s Mizuho, the bank's strategic shareholder, has committed to maintaining its 15% stake and may consider increasing its holding.

Tung said Vietcombank expects to proceed with the placement in 2026 if conditions are favorable, stressing that the goal is not only to raise capital but also to secure long-term strategic partners.

“We ask shareholders for understanding as management has made significant efforts, but investor decisions depend heavily on market conditions,” he said.

In parallel, Vietcombank is pursuing other capital-raising options, including retained earnings and reserve funds, though it prioritizes the private placement.

Under the plan, the bank may issue up to nearly 1.07 billion shares, with a total value of about VND10.69 trillion dong ($405.43 million). The timeline is expected to start in 2026 and may extend into 2027.

On dividends, Tung said the bank is seeking regulatory approval to distribute profits, noting retained earnings accumulated since 2023 amount to roughly VND44.5 trillion ($1.69 billion).

“Based on Resolution 79 (Politburo resolution on state economic sector development), we believe there is a basis for capital increases. This remains a key source, and Vietcombank will maintain its position as the bank with the largest charter capital,” he said.

Shareholders approved a 2026 business plan targeting around 5% growth in consolidated pre-tax profit, credit growth of about 10% - within the central bank’s cap of 13% - and a bad debt ratio below 1.5%. Total assets and customer deposits are expected to grow in line with credit expansion.

The AGM also approved a proposal to establish a wholly owned subsidiary bank at the the Vietnam International Financial Center (VIFC) with charter capital of VND3 trillion ($113.8 million). The bank said a presence in the center would enable it to participate directly in the development of the VIFC and expand international banking activities under a dedicated legal framework.

In addition, shareholders approved a profit distribution plan allocating nearly VND20.33 trillion (VND771.32 million) in post-tax earnings, after reserves, for dividends, though the payment form was not disclosed.

The meeting also elected Nguyen Ngoc Minh, deputy director general of the State Bank of Vietnam’s foreign exchange management department, to the bank’s supervisory board for the 2023-2028 term.