Shareholders happy and sad about dividends
In 2024, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to pay dividends and increase its charter capital. Accordingly, with the retained earnings of 2023, after setting aside funds, Techcombank plans to pay cash dividends at a rate of 15% (1 share receives 1,500 VND).
The amount this bank plans to pay in cash is nearly VND 5,284 billion. The expected implementation time is in the second or third quarter of 2024.
Techcombank's dividend policy is a major change after 10 consecutive years of retaining profits to strengthen capital foundation and develop business.
Military Commercial Joint Stock Bank (MB) also plans to pay 2023 dividends at a rate of 20%. The bank's profit to pay dividends to shareholders is VND 10,612.65 billion. Of which, MB will spend VND 2,653 billion to pay cash dividends at a rate of 5% and VND 7,959.49 billion to pay stock dividends at a rate of 15%. It is expected that in 2024, MB will pay dividends at a rate of 10-20%.
The General Meeting of Shareholders of Vietnam International Commercial Joint Stock Bank (VIB) on April 2 also approved the plan to set up funds and distribute profits in 2023. Specifically, VIB will pay dividends at a rate of 29.5% on charter capital. Of which, the maximum cash dividend is 12.5%, stock dividend is 17% and bonus shares are issued at a rate of 0.44% for employees.
The General Meeting of Shareholders of Asia Commercial Joint Stock Bank (ACB) on April 4 also approved a plan to pay dividends from 2023 profits at a rate of 25%, of which 15% is in shares and 10% in cash.
Vietnam Prosperity Joint Stock Commercial Bank (VPBank) also plans to submit to the General Meeting of Shareholders a profit distribution plan for 2023. Accordingly, after setting aside funds, VPBank's remaining profit is VND 8,353 billion. Of which, the bank plans to use nearly VND 7,934 billion to pay cash dividends, equivalent to a rate of 10% (1 share receives VND 1,000). The dividend payment period is the second and third quarters of 2024.
Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) also plans to submit to the General Meeting of Shareholders a plan for profit distribution and dividend payment in 2023 and a plan for dividend payment in 2024. The profit that HDBank can use to pay dividends is VND 8,998.9 billion.
The bank plans to pay a cash dividend of 10% and a stock dividend of 15%. In 2024, HDBank plans to pay a dividend of up to 30% (of which it plans to pay a cash dividend of up to 15%).
VietABank also plans to increase its charter capital by VND2,106 billion to more than VND7,505 billion, equivalent to 39%, through issuing shares to pay dividends from undistributed remaining profits and reserve funds to supplement charter capital.
Vietnam Maritime Commercial Joint Stock Bank (MSB) also plans to seek shareholders' approval for a plan to increase charter capital from VND20,000 billion to VND26,000 billion through stock dividends at a rate of 30% from undistributed profits as of December 31, 2023 according to audited financial statements and after allocating funds according to the law.
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) also plans to submit to shareholders in 2024 a plan to use all profits after setting aside funds in 2023 to pay dividends and increase charter capital. The final distribution level will need approval from the competent State agency.
Accordingly, in 2023, VietinBank's individual after-tax profit will reach VND 19,457 billion, after setting aside funds, the remaining profit will be VND 13,927 billion.
The annual general meeting of shareholders of the Export Import Commercial Joint Stock Bank (Eximbank) plans to submit to shareholders a plan to pay a dividend of 10%, of which 7% is in shares and 3% is in cash. The amount that the bank plans to spend is VND522 billion.
Besides, many banks such as Lien Viet Post Joint Stock Commercial Bank (LPBank), An Binh Commercial Joint Stock Bank (ABBank), Tien Phong Commercial Joint Stock Bank (TPBank) and Saigon Commercial Joint Stock Bank (SaigonBank) do not plan to pay dividends in 2024.
According to LPBank and ABBank, these two banks want to retain profits for investment and resource building. LPBank even plans not to pay dividends for the next 3 years.
National Commercial Joint Stock Bank (NCB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) will continue not to pay dividends in 2024 due to restructuring.
Many banks set aggressive profit plans
Bao Viet Commercial Joint Stock Bank (BVBank) has just released documents for the 2024 Annual General Meeting of Shareholders with the target of pre-tax profit in 2024 reaching VND 200 billion, an increase of 179% compared to 2023.
VPBank's Board of Directors plans to submit to shareholders a pre-tax profit plan of VND 23,165 billion, an increase of 114% compared to the implementation of 2023 (reaching VND 10,987 billion).
Of which, VPBank's profit was 20,709 billion VND, FE Credit's profit was 1,200 billion VND, VPBank Securities' profit was 1,902 billion VND and OPES Insurance's profit was 873 billion VND.
Eximbank targets pre-tax profit of VND5,180 billion, up 90.5% compared to the results achieved in 2023. Total assets are expected to increase by 11% to VND223,500 billion.
Techcombank also set a pre-tax profit target of VND27,100 billion in 2024, up 18.4% year-on-year. Meanwhile, in 2023, the bank's pre-tax profit will reach VND22,888 billion, down 10.5% year-on-year.
MB expects pre-tax profit in 2024 to grow by 6-8%. Specifically, MB's consolidated pre-tax profit in 2024 is expected to reach from VND27,884 billion to VND28,411 billion.
ABBank's General Meeting of Shareholders on April 5 also approved the pre-tax profit plan for 2024 to reach VND 1,000 billion, an increase of 94.5% compared to the results achieved in 2023.
Many shareholders believe that the bank is setting a pre-tax profit target of VND 1,000 billion, which is limited compared to the total assets. Mr. Dao Manh Khang - Chairman of the Board of Directors of ABBank shared that, looking at the reality in 2023, the bank's profit will drop to a low point, this target also creates pressure, challenges, and requires efforts from the entire system. This places a heavy responsibility on the entire bank, and cannot be dishonest with shareholders.
In 2024, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) sets a profit target of more than VND 44,000 billion, an increase of 10% compared to 2023.
According to the results of the survey on business trends of credit institutions in the second quarter of 2024 conducted by the Statistics Department of the State Bank, the overall business situation and pre-tax profit of the banking system in the first quarter of 2024 were not as assessed and expected by credit institutions in the previous survey.
Credit institutions expect the business situation to improve in the second quarter of 2024 but are still cautious in their expectations for the whole year of 2024, with 70.9-72.7% of credit institutions expecting the business situation to improve in the second quarter and the whole year of 2024.
Credit institutions expect pre-tax profits to recover from the second quarter of 2024, with 57.3% of credit institutions expecting pre-tax profits to grow compared to the first quarter of 2024, 30.9% of credit institutions expecting "no change" and 11.8% of credit institutions concerned about declining business performance .
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