Vietcombank to pay $128.9 million as dividend

Update: September, 08/2017 - 17:21
Customers at a Vietcombank office. The largest lender by market capitalisation plans to make an 8 per cent dividend payout for its performance in 2016. — Photo
Viet Nam News

HÀ NỘI — The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) will make an 8 per cent dividend payout based on the bank’s performance in 2016.

The bank had previously targeted a 10 per cent dividend payment for its performance in 2016.

Vietcombank will pay shareholders VNĐ800 (3.5 US cents) for every share they own. With nearly 3.6 billion shares being listed on the HCM Stock Exchange, the value of the dividend payout will reach nearly VNĐ2.9 trillion ($128.9 million).

The bank will finalise the list of beneficiary shareholders on September 29 and make the dividend payout on October 16.

According to annual reports released by Vietcombank, the largest lender by market capitalisation, while its post-tax profit kept increased every year from VNĐ4.42 trillion in 2012 to VNĐ6.85 trillion in 2016, its dividend payout rate declined during the period from 12 per cent to 8 per cent.

The State Bank of Việt Nam is currently the largest shareholder of Vietcombank, owning more than 2.77 billion shares, or 77.1 per cent of the bank’s charter capital.

The second-largest shareholder is Japanese Mizuho Bank Ltd, which owns nearly 540 million shares, or 15 per cent of the bank, while other shareholders own total 7.89 per cent of the bank’s capital.

Thus, the State will be able to receive VNĐ2.2 trillion from Vietcombank once the bank completes its dividend payout while Mizuho Bank Ltd will collect VNĐ432 billion.

By the end of 2016, total amount of outstanding loans and raised capital increased by 19 per cent year-on-year each to reach VNĐ460.8 trillion and VNĐ600.7 trillion, respectively. The bank’s bad debt ratio fell to 1.46 per cent from 1.79 per cent at the end of 2015.

Vietcombank is targeting pre-tax profit of VNĐ9.2 trillion, an yearly increase of 8 per cent, 8 per cent dividend payout rate for 2017 and bad debt ratio below 2 per cent.

The bank also plans to raise its total amount of outstanding loans and raised capital by 15 per cent and 14 per cent year-on-year to VNĐ547 trillion and VNĐ684.8 trillion, respectively. — VNS