VIB is about to spend nearly 1,650 billion VND to pay dividends

Vietnam International Commercial Joint Stock Bank (HoSE: VIB) has just announced the Board of Directors' resolution on the time and form of payment of remaining cash dividends in 2023.

The implementation rate is 6.5% (shareholders owning 1 share will receive 650 VND). The last registration date to close the list of shareholders to receive the second dividend is April 19, 2023. The expected payment date is May 17, 2024. With more than 2.5 billion shares in circulation, VIB is expected to spend nearly 1,649 billion VND to pay dividends to shareholders.

Previously, on January 22, VIB had set the final registration date for dividend payment at a rate of 6%, equivalent to shareholders owning 1 share will receive 600 VND. The payment date is February 21, 2024. VIB had to spend more than 1,500 billion VND for this dividend payment.

Recently, on April 2, the 2024 VIB Annual General Meeting of Shareholders took place, the bank's General Meeting of Shareholders 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.

Regarding the cash dividend payment, VIB plans to divide it into 2 installments, the first installment is a 6% interim dividend and the second installment is a cash dividend payment at a rate of 6.5%. The total maximum amount expected to be used for dividend payment is VND3,171 billion.

Finance - Banking - VIB is about to spend nearly 1,650 billion VND to pay dividends — VIB stock price movements in the past 3 months (Photo: FireAnt).

At the same time, the bank will issue 431.3 million to existing shareholders, at a rate of 17% (each shareholder owning 100 VIB shares on the record date will receive 17 new shares) to increase charter capital by 4,312.6 billion VND. In addition, VIB will also issue 11.1 million bonus shares to employees, at a rate of 0.44%, increasing charter capital by 110.6 billion VND.

VIB's General Meeting of Shareholders also approved the business plan with pre-tax profit reaching VND 12,045 billion, an increase of 13% compared to the actual level in 2023.

In addition, other basic indicators such as total assets are planned by VIB to reach 492,000 billion VND, an increase of 20% compared to the actual level in 2023. Outstanding credit balance increases by 20%, reaching 320,600 billion VND. Capital mobilization is expected to increase by 21% to 315,200 billion VND while the bad debt ratio is expected to be below 3%, in 2023 this ratio is 2.20%.

On the stock market, in the morning trading session of April 9, VIB shares were trading around VND 22,700/share with a trading volume of more than 1.5 million units .

Source