Shareholders of many banks are about to receive cash dividends

Shareholders of many banks are about to receive good news about dividends. Photo: ST

Specifically, the Board of Directors of Vietnam International Commercial Joint Stock Bank (VIB) has just issued a resolution approving the implementation of the plan to advance cash dividends in 2022 for existing shareholders with the rate of cash dividend advance on the capital. The charter is 10%, equivalent to an amount of more than VND 2,107.6 billion.

The VIB Board of Directors' dividend advance plan is based on the bank's profit in the first three quarters of 2022. Accordingly, VIB's third-quarter separate financial report announced the profit after tax in the first 3 quarters of the year was VND 6,254 billion; the undistributed profit was VND 6,833 billion. According to financial regulations, VIB will set aside at least 15% of profit after tax in the year for equity funds.

Thus, the undistributed profit after making quarterly provisions is VND 5,894 billion, therefore, VIB can use this amount to make cash dividend advance, equivalent to the temporary maximum rate. The cash dividend on charter capital is 28% and still ensures compliance with regulations on capital adequacy and liquidity of the State Bank.

According to the financial report of the fourth quarter of 2022, VIB's profit after tax for the whole year of 2022 is VND 8,469 billion, up 32% compared to 2021; undistributed profit at the end of December 2022 is VND 9,055 billion.

VIB said that in the last three years, stemming from the potential risk due to the Covid-19 pandemic, the SBV has asked banks not to pay dividends in cash. Therefore, continuously for the past 3 years, VIB has not paid cash dividends and only stock dividends. Therefore, the cash dividend in 2023 will meet the legitimate needs and aspirations of the bank's shareholders.

Similar to VIB, Tien Phong Commercial Joint Stock Bank (TPBank) has just announced to close of the list of shareholders to get opinions on the plan to pay cash dividends in 2023. In 2022, TPBank reported a profit after tax of VND 6,261 billion. VND, up 30% compared to 2021.

Previously, in the 2022 General Meeting of Shareholders of Vietnam Prosperity Commercial Joint Stock Bank (VPBank), the bank's leaders confirmed that from next year, they will submit to the General Meeting of Shareholders a cash dividend of 30% of the annual profit after tax. VPBank's profit after tax also recorded a growth of 47%, reaching VND 16,924 billion.

At Asia Commercial Joint Stock Bank (ACB), the 2022 profit distribution plan approved by the General Meeting of Shareholders also has a 10% cash dividend (to be implemented in 2023 if approved by the SBV) in addition to 15 % in shares. Like the banks above, ACB recorded a net profit in 2022 of VND 17,114 billion, up 43% compared to 2021.

In addition to high-profit growth, these banks all have the top ROE rates in the market and low bad debt ratios. Accordingly, ACB's ROE is at 26.5%; of VPBank reached 25.6%, of TPBank reached 21.48% and at VIB even reached 30%. Regarding bad debt, the ratio at ACB is only 0.74%, at VIB it is 1.79%, at TPBank it is 0.84%.

In addition to cash dividends, some banks also plan to pay stock dividends to increase charter capital. Accordingly, the Export-Import Commercial Joint Stock Bank (Eximbank) has just issued a resolution approving the final registration date to finalize the list of shareholders exercising the right to receive dividends in shares.

Accordingly, shareholders will be paid a share dividend at the rate of 20% and the last registration date is February 20. The expected number of shares to be issued is 245.88 million shares with a total value of VND 2,458 billion. Issued capital comes from after-tax profits, after setting aside funds for the years 2017, 2018, 2019, 2020 and 2021.

This is the first time Eximbank has paid stock dividends to shareholders in nearly ten years. In previous years, Eximbank was not allowed to pay dividends because all special bonds sold to VAMC have not been paid off. The last time this bank paid dividends was in 2013.

Eximbank's published consolidated financial statement for the fourth quarter of 2022 shows that Eximbank's pre-tax profit in 2022 reached VND 3,709 billion, up sharply from VND 1,205 billion.