AsemconnectVietnam - The State Bank of Vietnam (SBV) has just issued a document approving Saigon - Hanoi Bank (HoSE - SHB) to increase its charter capital to VND40,658 billion through issuing dividend shares.

Specifically, the State Bank approved SHB to issue nearly 403 million shares to pay dividends in 2023 at a rate of 11%, equivalent to shareholders owning 100 shares will receive 11 new shares.
The source of capital used to issue dividend shares is undistributed after-tax profit after fully setting aside funds in accordance with the law and the remaining undistributed profit of the previous year according to the audited financial statements as of December 31, 2023.
Upon completion, SHB's charter capital is expected to increase by nearly VND4,029 billion, from VND36,630 billion to VND40,658 billion, continuing to be in the TOP 5 largest private banks in the system. The increase in charter capital is important to improve the bank's financial capacity, increase SHB's competitiveness in the process of international economic integration, and especially meet the expected benefits of shareholders.
According to the Resolution of the Annual General Meeting of Shareholders (AGM) in 2024, SHB will pay dividends in 2023 at a total rate of 16%, including 5% in cash and 11% in shares. In August 2024, the Bank paid the first 2023 dividend in cash at a rate of 5% to shareholders.
SHB always maintains increasing charter capital through issuing shares to pay dividends at a rate of 10 - 18%, continuously improving the capital base. Thereby, capital safety ratios and risk management always comply better than the regulations of the State Bank, managing liquidity risks according to Basel II and Basel III standards. The bank is steadfast in its orientation of sustainable, safe and effective development, continuously improving its management capacity according to international standards and modern models.
According to banking and finance expert - Associate Professor Dinh Trong Thinh, a strong financial foundation is a measure to affirm the Bank's reputation in the market, thereby being the basis for expanding to attract capital flows from residents, businesses or mobilize from the bond market with appropriate interest rates and terms.
In addition, Associate Professor. Dinh Trong Thinh commented that increasing charter capital not only ensures financial safety factors, but also helps the Bank have more resources to invest in digital transformation and green credit in many areas of the economy.
By December 31, 2024, SHB's total assets will be VND740 trillion; outstanding credit balance will be nearly VND523 trillion, up 18%. Safety, liquidity, and risk management indicators will comply with and be better than the regulations of the State Bank of Vietnam, and the capital adequacy ratio (CAR) will be at 12%.
N.Nga
Source: VITIC/Tinnhanhchungkhoan