Saturday, September 22 2018

VietNamNews

$123m bank divident payout

Update: September, 13/2018 - 06:00
The State Bank of Việt Nam, which owns 77.1 per cent of Vietcombank’s charter capital, will reap over VNĐ2.2 trillion in this dividend payment. — Photo cafef.vn
Viet Nam News

HÀ NỘI – Vietcombank has decided to pay shareholders a cash dividend at a rate of 8 per cent after last year’s business results.

The bank is expected to spend about VNĐ2.88 trillion (US$123 million).

The deadline for shareholders to take part is October 8. Dividends will be paid on October 25, the bank announced in a filing to the State Securities Commission.

Vietcombank earned a record VNĐ9.11 trillion ($389.3 million) in after-tax profit in 2017, up 33 per cent against 2016.

The State Bank of Việt Nam, which owns 77.1 per cent of Vietcombank’s charter capital, will reap over VNĐ2.2 trillion from these dividends. Japanese strategic shareholder, Mizuho Bank Ltd with a 15-per-cent stake, will receive nearly VNĐ432 billion.

Shares have increased nearly 14 per cent in value this year, trading at around VNĐ63,000 ($2.69) per share on the Ho Chi Minh Stock Exchange.

Last month, the Prime Minister issued Decision No 986/QĐ-TTg on the development strategy of Việt Nam’s banking sector to 2025. The State will gradually reduce its holdings in three major banks, including Vietcombank, Bank for Investment and Development of Việt Nam (BIDV) and Vietinbank.

During the 2018-20 period, the State will increase charter capital to ensure the banks’ capital adequacy ratio in conformity with Basel II standards, guaranteeing the dominant stake of at least 65 per cent of total number of voting shares at State-owned commercial banks (except for Agribank).

Until 2025, the State holdings will be reduced to 51 per cent. In addition, the Government has also set a schedule for these banks (Vietcombank, BIDV and Vietinbank) to list shares on foreign stock markets. – VNS

 

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