Vietnam private bank ACB lowers 2025 dividend payout ratio

Asia Commercial Bank will reduce its dividend payout ratio to 20% for 2025 and plans to raise it back to 25% in 2026, according to documents released ahead of the bank’s 2026 AGM.

Under the proposal, the bank (HoSE: ACB) will distribute dividends for 2025 at a combined rate of 20%, including 13% in shares and 7% in cash.

Chairman Tran Hung Huy said the bank views 2026 as a year to accelerate investment and implement its 2025-2030 development strategy, with the goal of becoming an “efficient financial group.”

The lender plans to reinforce its position as a leading retail bank in Vietnam while accelerating expansion in the corporate banking segment. It will also focus on developing non-credit products and services, diversifying digital customer channels, and expanding its financial services ecosystem, including insurance, investment products, and value-added services.

Growth targets set for 2026

For 2026, ACB aims to increase total assets by 16%, while credit growth and deposits are also projected to rise by 16%, subject to credit growth limits set by the State Bank of Vietnam.

Compared with 2025 performance, the growth targets for total assets and credit are lower, declining from more than 18% to 16%. Meanwhile, deposit growth is expected to accelerate from 9% last year to 16%.

ACB reported a rare decline in pre-tax profit in 2025 - the first since 2013 - falling 7% to VND19.54 trillion ($743 million) and achieving only 85% of the year's target.

CEO Tu Tien Phat attributed the decline to the bank’s programs of offering competitive lending rates to expand its base of quality customers while increasing loan-loss provisions to strengthen its financial buffer for the coming years. However, profit from core business activities before provisioning costs still recorded modest growth, he added.

For 2026, the bank expects pre-tax profit to grow 14% to over VND22.27 trillion ($847.12 million), while keeping the non-performing loan ratio below 2%.

Dividend policy adjustment

Due to the weaker-than-expected 2025 performance, ACB’s board proposed a dividend payout of 20% for the year, lower than the previously planned 25%.

For 2026, the bank aims to restore the payout ratio to 25%, including 15% in stock dividends and 10% in cash.

Between 2020 and 2024, ACB maintained a stable dividend policy of 25%, comprising 15% in shares and 10% in cash. At last year’s AGM, the bank had initially planned to keep the same payout ratio for 2025.

At the end of last year, ACB reported retained earnings of nearly VND25.3 trillion ($962.12 million). After the proposed dividend distribution, the remaining retained earnings would amount to nearly VND14.93 trillion.

Mức thù lao và ngân sách hoạt động của HĐQT và BKS năm 2026 sẽ duy trì tỷ lệ 0,6% trên lợi nhuận sau thuế, ước tính 107,22 tỷ đồng (tính trên lợi nhuận sau thuế 17.870 tỷ đồng).

To support capital expansion, the bank plans to issue about 667.8 million shares, raising its charter capital to over VND58.04 trillion ($2.21 billion). The issuance is expected to take place in the second quarter of this year.

Separately, the board also proposed that remuneration and operating budgets for the board of directors and supervisory board for 2025 be set at 0.6% of after-tax profit, equivalent to about VND87.76 billion ($3.34 million).

The same ratio will be maintained for 2026, with an estimated budget of VND107.22 billion based on projected after-tax profit of VND17.87 trillion ($679.62 million).

On the Ho Chi Minh Stock Exchange (HoSE), ACB shares closed Friday at VND23,450 ($0.89) apiece.