Vietcombank to issue 2.7 billion shares, becoming Vietnam's biggest bank

Vietcombank plans to issue over 2.7 billion shares to increase its charter capital to VND75 trillion ($3.2 billion), becoming the leader in Vietnam's banking industry in terms of chartered capital.

Listed on the Ho Chi Minh Stock Exchange (HoSE) as VCB, the lender is one of the "Big 4" banks in Vietnam.

The capital injection is expected to be implemented in 2023 and 2024, according to its proposal to be submitted to shareholders at their upcoming extraordinary general meeting.

Vietcombank had more than 4.7 billion shares as of December 31, 2022, excluding those issued after completing the plan to increase charter capital by 18.1% in 2022.

At present, Vietcombank's charter capital is more than VND47.3 trillion ($2.01 billion). Once the 2023 capital increase plan is completed, the figure will increase by over VND27.68 trillion or 58.4% to VND75 trillion.

As such, Vietcombank will surpass VPBank, listed on the HoSE as VPB, with a charter capital of over VND67.4 trillion ($2.87 billion), to become the leader in the Vietnamese banking system.

Vietcombank's unconsolidated pre-tax profit was estimated at VND36.77 trillion ($1.56 billion) in 2022, exceeding its target by 19% and up 39% year-on-year.

Its non-interest income was up 9.2% compared to 2021, surpassing its target by 8.7%. Net income from foreign currency trading grew 31.7%, 24% higher than the plan.

Off-balance-sheet debt recovery reached over VND2.39 trillion ($102.04 million), equivalent to about 80% of the target.

In 2022, credit growth exceeded VND1,150 trillion ($49.05 billion), up 19% compared to the end of 2021. Of this, wholesale credit was up 18.5%, and retail credit up 19.4% year-on-year. The bank's bad debt ratio remained at 0.67%.

On the HoSE, VCB closed Monday’s session at VND89,900 ($3.83).