HDBank to raise charter capital
An HDBank transaction office in HCM City (Photo courtesy of the bank)

HCM City (VNS/VNA) - The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has announced plans to increase its charter capital to more than 20.273 trillion VND (879.48 million USD) by paying dividends for 2020 in shares and an employee stock option plan.

According to information published by the Ho Chi Minh Stock Exchange on June 4, the HDBank board of directors approved the plan to hike the charter capital in 2021 as approved at the bank’s annual general meeting in April.

The bank will increase its charter capital by 3.984 trillion VND (172.83 million USD) by issuing more than 398 million shares as dividends for 2020 at a rate of 25 percent from undistributed profits.

The lender will also issue 20 million shares to employees (ESOP).

The HDB share closed on June 3 at 35,800 VND with a lot of foreign buying.

In the first quarter HDBank reported a pre-tax profit of more than 2.1 trillion VND (91.1 million USD), an increase of 68 percent year-on-year, with income from services up sharply.

Its return on equity and return on assets increased strongly to 26.3 percent and 2.1 percent, its capital adequacy ratio (based on Basel II standards) was over 12 percent while its standalone bad debts ratio was only 1.1 percent.

International credit rating agency Moody's Investors Service (Moody's) recently upgraded HDBank's outlook from "stable" to "positive." The positive outlook reflects Moody's view that improvements in asset quality over recent years, which could translate into lower credit costs and higher profitability, could raise the banks' Baseline Credit Assessments (BCAs) over the next 12 -- 18 months/.

Source: VNA
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