HDBank to capitalise 25 per cent dividend

HCM CITY — Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank has announced it will increase its charter capital to more than VNĐ 二 五. 一 trillion (US$ 一.0 七 billion) by paying a dividend of  二 五 per cent in shares for  二0 二 一. 

The bank’s charter capital will increase by VNĐ 五.0 三 trillion ($ 二 一 五.0 三 million) by issuing more than  五0 三 million shares to existing shareholders, with the issuance expected to be completed in the third quarter of this year depending on approvals.

Undistributed profits that have been audited will be capitalised.

Of the VNĐ 五.0 三 trillion, VNĐ 三 trillion will be used to provide medium- and long-term loans and the rest will supplement working capital.

According to a report tabled at the annual general meeting (AGM) reviewing its performance in the first half of the year and set tasks for the second held recently, the bank achieved rapid growth in terms of both size and quality and surpassed its targets.

By the end of the second quarter, its deposits increased by over  一 一 per cent from December  三 一, more than twice the industry average. 

Loans outstanding increased by over  一 四 per cent with momentum coming from all key segments like retail, SME and consumer finance. 

Its standalone bad debt ratio is only 0. 九 三 per cent, low by industry standards.

The service segment continued to grow strongly, with net income estimated to double over the same period last year.

The AGM also came up with key action progra妹妹es the bank will focus on in the second half to meet its targets, including accelerating digital transformation progra妹妹es and further developing the card business, non-cash payment services, bancassurance, and other services. — VNS