The State Bank of Vietnam has approved an increase in charter capital for Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) by VND 6,000 billion, through the issuance of shares to pay dividends at a 30% rate.
MSB will boost its capital by issuing shares to pay dividends from retained profits, based on the audited financial report as of December 31, 2023, after deducting legally required funds.
The issuance will be at a rate of 30% of total outstanding shares, amounting to an additional 600 million shares.
Post-capital increase, the bank will have a total of 2.6 billion outstanding shares, raising its charter capital to VND 26,000 billion, exceeding $1 billion. This milestone comes over three years after listing on HoSE.
“Increasing our charter capital enhances our competitive position, supports capital buffers, maintains a high capital adequacy ratio (CAR), and promotes credit flow,” an MSB director commented.
In the first quarter, MSB’s total assets reached VND 280,000 billion, a 4% increase from the start of the year. Credit balances rose by over 5%, with customer loans hitting VND 158,000 billion (+4.7%), and customer deposits reaching VND 138,000 billion (+4.1%).
MSB reported a pre-tax profit of VND 1,500 billion in Q1, slightly higher than the same period last year.
For 2024, MSB aims for total assets of VND 280,000 billion, a 5% increase from 2023. Capital mobilized in market I and bonds is expected to reach VND 178,900 billion, up 27% year-over-year.
The bank’s outstanding credit debt is anticipated to grow within the State Bank’s limit, aiming for VND 178,200 billion for the entire year. Pre-tax profit is projected to rise by 17%, reaching VND 6,800 billion.
MSB leaders anticipate challenges in the first half of 2024 but remain confident in achieving their profit goals.
At the 2024 annual shareholder meeting in April, MSB CEO Nguyen Hoang Linh stated that profits generated in 2024, along with retained profits after the charter capital increase, will support a dividend plan of up to 15% in cash or shares, pending approval by the association.
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Source: Vietnam Insider