VietNamNet Bridge - Commercial banks only have one month to implement business plans set earlier this year and raise charter capital to meet international standards.


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Most commercial banks are expected to fulfill or exceed the yearly profit targets. By the end of the third quarter, 26 commercial banks which had released finance reports had fulfilled 77 percent of their business plans. Of these, 21 out of 26 banks had fulfilled more than 70 percent.

However, many banks, mostly small, cannot implement the capital increase plan and have only one month to do this. In Q4, banks speed up raising capital with plans to pay dividends in shares and issue bonus shares.

ABBank, which has charter capital at VND5.3 trillion now, has approved a plan to issue an additional 39.3 million shares to pay to shareholders as dividend (7.4 percent).

LienViet Post Bank has to run against time to complete the capital increase plan to ensure a capital adequacy ratio as its total assets have grown too rapidly in the last few years. 

The bank plans to issue 37.5 million shares to pay for dividends, and 200 million shares to existing shareholders. If the plan is implemented smoothly, it will successfully raise capital to VND9.875 trillion.

Most commercial banks are expected to fulfill or exceed the yearly profit targets. By the end of the third quarter, 26 commercial banks which had released finance reports had fulfilled 77 percent of their business plans. Of these, 21 out of 26 banks had fulfilled more than 70 percent.
SeABank, after getting approval from the State Bank, has announced a plan to raise charter capital to VND7.688 trillion after three share issuance campaigns, during which 222.2 million shares would be issued to workers and existing shareholders, and would be paid as dividends.

TP Bank is planning to fix the list of shareholders to pay dividends in shares and distribute bonus shares to existing shareholders. After the share issuance, the charter capital of the bank is expected to rise to VND8.566 trillion.

The two biggest share issuance plans of the year are expected to be implemented in some days by Vietcombank and BIDV. 

The former bank will offer to sell 360 million to foreign investors to increase its charter capital by VND3.6 trillion, while the latter will sell 603 million to a strategic shareholder from South Korea - KEB Hana Bank.

Cafebiz cited a report released in mid-November as showing that the charter capital of 10 commercial banks had increased by VND43.5 trillion in the first nine months of the year.

These included Techcombank, VPBank, MB, SHB, ACB, LienVietPostBank, TPBank, OCB, BacABank and NamABank. However, only Techcombank, VP Bank, Military Bank and ACB have fulfilled the capital increase plans set for this year.

Techcombank made the biggest leap in implementing its plan, raising the capital from VND11.655 trillion earlier this year to VND35 trillion in late September 2018. With the achievement, Techcombank has become the second largest bank, just after Vietcombank.