Wave of cash dividends, capital addition likely at bank shareholder meetings: expert

The 2024 annual general shareholder meeting season of Vietnamese banks starting next March will likely usher in a wave of cash dividends and large capital increase plans, says Nguyen The Minh, chief analyst at Yuanta Vietnam Securities JSC.

He said that banks had not been able to pay cash dividends for many years because of the need for additional capital to ensure Basel II criteria and requirements of the State Bank of Vietnam (SBV). This year, many plan to do so and this has had a good impact on bank stock prices lately.

Some large banks tasked with restructuring weak banks need resources, so there could be a wave of capital increases this year, especially by state-owned and large private banks, he said.

“Another expectation for the banking industry in the short and medium term is the increase in ownership rate of foreign investors when the SBV raises the foreign ownership limit in commercial banks to 35%,” Minh said.

He also noted that the central bank has granted the entire credit quota of 15% to commercial banks right at the beginning of the year, helping them be more proactive in their lending and capital mobilization plans.

To date, five banks have announced dates for their 2024 annual general shareholder meetings (AGM).

ABBank said its AGM will be held April 5 in Hanoi, while Asia Commercial Bank (ACB) will hold it on April 4 and MBBank on April 19.

LPBank's board of directors scheduled its AGM for February 15 while NamABank will hold it on March 29.

Meanwhile, Vietcombank and BIDV plan to issue shares equivalent to 6.5% and 9% of their respective charter capital to institutional investors via private placements.

MBBank plans to issue 70 million shares or 1.3% of its charter capital to military-run telecom giant Viettel.