An HDBank transaction office in HCM City. HDBank has announced a distribution of dividends in shares to increase its charter capital. — Photo courtesy of the bank

HCM CITY — Hồ Chí Minh City Development Joint Stock Commercial Bank has announced it will increase its charter capital to more than VNĐ25.1 trillion (US$1.07 billion) by paying a dividend of 25 per cent in shares for 2021. 

The bank’s charter capital will increase by VNĐ5.03 trillion ($215.03 million) by issuing more than 503 million shares to existing shareholders, with the issuance expected to be completed in the third quarter of this year depending on approvals.

Undistributed profits that have been audited will be capitalised.

Of the VNĐ5.03 trillion, VNĐ3 trillion will be used to provide medium- and long-term loans and the rest will supplement working capital.

According to a report tabled at the annual general meeting (AGM) reviewing its performance in the first half of the year and set tasks for the second held recently, the bank achieved rapid growth in terms of both size and quality and surpassed its targets.

By the end of the second quarter, its deposits increased by over 11 per cent from December 31, more than twice the industry average. 

Loans outstanding increased by over 14 per cent with momentum coming from all key segments like retail, SME and consumer finance. 

Its standalone bad debt ratio is only 0.93 per cent, low by industry standards.

The service segment continued to grow strongly, with net income estimated to double over the same period last year.

The AGM also came up with key action programmes the bank will focus on in the second half to meet its targets, including accelerating digital transformation programmes and further developing the card business, non-cash payment services, bancassurance, and other services. — VNS