Vietnam banks plan to pay cash dividends again

HANOI: Some banks in Vietnam have announced plans to pay cash dividends to shareholders for the first time in three years.

Accordingly, TPBank is due to pay a cash dividend at a rate of 25% instead of a stock dividend like in previous years. This means that shareholders will receive 2,500 dong (11 US cents or 47 sen) per owned share.

The payment is expected in the first quarter of 2023.

The source is from undistributed profits as of 2021 after disbursing funds according to the audited financial statements.

This is the first bank to consult shareholders on cash dividend payments this year.

TPBank said that accumulated to the end of 2022, the remaining profit and surplus from funds reached more than 13.36 trillion dong (RM2.4bil). Of which, the undistributed profit until 2021 after distributing to funds was nearly 5.5 trillion dong (RM999mil).

Last year, TPBank also recorded a 30% growth in profit before tax to nearly 7.9 trillion dong (RM1.4bil), thanks to an increase in fee income and the recovery of customers whose debts were extended during the pandemic, so risk provisions were reduced.

Previously, Vietnam International Commercial Joint Stock Bank (VIB) said that if it is approved by the general meeting of shareholders and approved by the State Bank, it can pay a cash dividend of up to 35% of the charter capital, meaning that shareholders owning one VIB share can receive 3,500 dong (64 sen) in dividends.

According to VIB’s representative, the payment rate could be higher if irregular revenues were recorded in 2022.

In 2022, VIB recorded a profit before tax of more than 10.58 trillion dong (RM1.9bil), an increase of 32% over the previous year.

Similarly, Vietnam Prosperity Commercial Joint Stock Bank and Asia Commercial Joint Stock Bank also plan to pay cash dividends this year. — Viet Nam News/ANN