VPBank becomes Vietnam’s largest bank by charter capital

By Trang Nguyen
Thu, December 8, 2022 | 10:20 pm GMT+7

VPBank has topped Vietnam's banking system in terms of charter capital after expanding it by 50% to VND67,434 billion ($2.83 billion).

This puts it far ahead of state-owned banks who had hitherto held the top slots.

BIDV's chartered capital is VND50,585 billion ($2.12 billion), while the figures for VietinBank, Vietcombank, and Agribank are VND48,058 billion, VND47,325 billion, and VND34,351 billion, respectively.

VPBank is a leading private creditor in Vietnam. Photo courtesy of the bank.

VPBank is a leading private creditor in Vietnam. Photo courtesy of the bank.

After the central bank had approved its charter capital hike plan on August 19, 2022, VPBank closed the list of shareholders on September 29 to issue more than 2.24 billion shares to existing shareholders at the ratio of 2:1 (owning two ordinary shares can buy one new share).

The capital addition came from undivided profits, reserve fund to supplement charter, and more than 2.24 billion shares issued.

In the first nine months of the year, the bank's consolidated pre-tax profits reached more than VND19,800 billion ($831.7 million), up 70% year-on-year. As of September, the bank's equity had reached VND102.36 trillion ($4.29 billion), up 18.6% year-on-year.

VPBank also issued 30 million treasury shares recently to employees under the Employee Stock Ownership Plan (ESOP), equivalent to 0.675% of the total number of outstanding shares. The issue price was equal to the par value of VND10,000 ($0.42) per share.

The bank also plans to issue shares equivalent to a maximum 15% of its charter capital to foreign investors, bringing the total foreign ownership ratio to 30% at maximum. With this option, the maximum number of shares issued will be 1.19 billion.

On the Ho Chi Minh Stock Exchange, the bank (VPB) closed Thursday’s session at VND17,000 ($0.71) per share.

Comments (0)
  • Read More
Vinhomes spends $198 mln on record share buyback since start

Vinhomes spends $198 mln on record share buyback since start

Vinhomes, the largest housing developer in Vietnam, has spent some VND5 trillion ($197.82 million) on buying back its shares since it started its record-breaking plan on October 23.

Finance - Mon, November 11, 2024 | 9:25 am GMT+7

Vietnam moves up in global value chain with high-value investments: Savills

Vietnam moves up in global value chain with high-value investments: Savills

Vietnam's industrial sector is undergoing a significant transformation, attracting a "new wave" of high-value investments and the attention of leading global manufacturers and technology experts, says a Savills Vietnam report.

Investing - Mon, November 11, 2024 | 8:08 am GMT+7

KFC Indonesia shutters numerous outlets, lays off thousands of employees

KFC Indonesia shutters numerous outlets, lays off thousands of employees

KFC Indonesia, owned by Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), reported a net loss of IDR557.08 billion (over $36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets (as of September) and sack of 2,274 employees.

Southeast Asia - Sun, November 10, 2024 | 11:00 pm GMT+7

Indonesia eyes to become world’s palm oil price setter

Indonesia eyes to become world’s palm oil price setter

Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.

Southeast Asia - Sun, November 10, 2024 | 11:00 pm GMT+7

Vietnamese broker ACBS sees profit surge, sustained capital support from parent bank

Vietnamese broker ACBS sees profit surge, sustained capital support from parent bank

ACB Securities JSC (ACBS) has reported a surge in both charter capital and profit, fueled by continued investment from its parent company, Asia Commercial Bank (ACB).

Finance - Sun, November 10, 2024 | 7:45 pm GMT+7

Advocacy group GWEC proposes model for Vietnam to meet offshore wind targets

Advocacy group GWEC proposes model for Vietnam to meet offshore wind targets

The Global Wind Energy Council (GWEC), a member-based organization that represents the entire wind energy sector, has proposed a two-stage competitive model for Vietnam to scale investment and achieve its offshore wind development targets.

Energy - Sun, November 10, 2024 | 4:00 pm GMT+7

Foreign traders extend net-selling streak in Vietnam amid VND devaluation woes

Foreign traders extend net-selling streak in Vietnam amid VND devaluation woes

Foreign investors net sold a total of VND3,639 billion ($144 million) worth of Vietnamese shares in the week ended November 8, extending their net-selling streak amid concerns over the dong devaluation.

Finance - Sun, November 10, 2024 | 1:24 pm GMT+7

Vietnam to block customs clearance for purchases on unregistered online platforms

Vietnam to block customs clearance for purchases on unregistered online platforms

The General Department of Vietnam Customs (GDVC) has requested local customs authorities not clear shipments purchased via cross-border shopping platforms that have yet to register with the Ministry of Industry and Trade.

Economy - Sun, November 10, 2024 | 11:10 am GMT+7

Central counterparty clearing mechanism key to facilitating Vietnam stock market upgrade: exec

Central counterparty clearing mechanism key to facilitating Vietnam stock market upgrade: exec

A central counterparty clearing (CCP) mechanism is key to removing prefunding hitches and drawing more foreign investors to Vietnam’s stock market, says Ta Thanh Binh, general director of Vietnam Securities Depository and Clearing Corporation (VSDC).

Finance - Sun, November 10, 2024 | 9:00 am GMT+7

Vietnam semiconductor workforce meets just 20% of industry demand: academic

Vietnam semiconductor workforce meets just 20% of industry demand: academic

Vietnam faces a significant shortage of semiconductor workers, with the country currently meeting just 20% of actual demand, said a senior academic.

Economy - Sun, November 10, 2024 | 7:50 am GMT+7

Hot real estate prices not a good sign for Vietnam: association exec

Hot real estate prices not a good sign for Vietnam: association exec

Recent fluctuations in real estate prices in suburban areas and the surge in land auction prices are issues of concern, says Nguyen Van Dinh, vice chairman of the Vietnam Real Estate Association (VNREA).

Real Estate - Sat, November 9, 2024 | 9:27 pm GMT+7

200 billionaires to attend Art for Climate Festival in northern Vietnam

200 billionaires to attend Art for Climate Festival in northern Vietnam

Around 200 billionaires are expected to attend an Art for Climate Festival that the United Nations Alliance for Sustainable Development Goals (UnASDG) is jointly organizing early next year in the northern province of Quang Ninh.

Industries - Sat, November 9, 2024 | 7:18 pm GMT+7

Vietnam can achieve two-digit GDP growth if bottlenecks removed: PM

Vietnam can achieve two-digit GDP growth if bottlenecks removed: PM

Vietnam can achieve two-digit GDP growth rates in the coming decades if institutional bottlenecks are cleared and all resources are mobilized, Prime Minister Pham Minh Chinh asserted at a regular cabinet meeting on Saturday.

Economy - Sat, November 9, 2024 | 4:14 pm GMT+7

PYN Elite sees returns down 1.7% in October, first time since May

PYN Elite sees returns down 1.7% in October, first time since May

Finland-based PYN Elite Fund has said it recorded returns of negative 1.7% month-on-month in October, the first decline since May this year.

Finance - Sat, November 9, 2024 | 2:26 pm GMT+7

Philippines’ rice imports surpass 2023 level

Philippines’ rice imports surpass 2023 level

The Philippines’ rice imports so far this year have surpassed last year's level and can hit 4.2 million metric tons by end-2024, said Department of Agriculture's technical advisory group member and former undersecretary for rice industry development Leocadio Sebastian.

Southeast Asia - Sat, November 9, 2024 | 1:58 pm GMT+7

Indonesia, Canada discuss expediting completion of comprehensive economic pact

Indonesia, Canada discuss expediting completion of comprehensive economic pact

Indonesian Deputy Trade Minister Dyah Roro Esti expressed optimism that the 10th round of the negotiations on the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) will run smoothly and produce a substantial agreement.

Southeast Asia - Sat, November 9, 2024 | 1:54 pm GMT+7