Vietcombank to raise charter capital

Thanh said the added capital of VND9.3 trillion was from the issuance of 933 million bonus shares for the existing shareholders of the bank. 

He said that after raising charter capital, the bank will offer foreign investors about 360 million shares or a 10% stake, which will be taken from its two biggest shareholders, the State and Mizuho Bank of Japan. Thus, the state would reduce its stake in the bank from 77% to 70%, and Mizuho Bank’s stake would fall from 15% to 13%. 

Thanh said that by the end of Q1, the VCB’s capital source had increase by 2.7%, higher than the average growth in the banking industry. He said despite offering the lowest interest rates in the market, its brand and competitive products help the bank’s capital to grow. 

Credit within the quarter also increased by 6.5%, while the non performing loans (NPL) ratio was down slightly by 1.76% compared to the beginning of the year. The bank also reported profits before tax of VND2.3 trillion, up 61% over the same quarter last year. 

By the end of 2015, the total assets of the bank had reached VND674 trillion, up 16.9% compared to the beginning of the year. The total profits before tax reached VND6.8 trillion. This year, VCB expected to earn VND7.5 trillion in profits, a 10% increase from 2015. 

Shareholders of Vietcombank have already received a 10% cash dividend worth VND2.7 trillion for 2015, and the bank plans to pay a dividend of 10% in cash this year as well. 

The bank also planned to pay 0.35% of its profit margin to its director board and supervising board this year. So with the target of VND7.5 trillion, leaders of the bank are expected to have a combined income of VND26.5 billion this year. 

Even before the additional capital, the bank already was the largest bank in charter capital in Vietnam with VND26.65 trillion, second only to Vinamilk on the Vietnamese stock market. 

However, Vietcombank said it aims at not only to be the No 1 bank in Vietnam, but also to be placed in the top 300 financial banks with the best management in the world by 2020. 

The bank said it would also consider spending on M&A activities this year. 

Currently, Vietcombank holds a 7% stake in Military Bank (MBB), an 8.2% stake in Export and Import Bank (EIB), a 5% stake in Orient Commercial Bank (OCB), a 4.3% stake in Saigonbank and more than a 10% stake in Cement Finance Company.