HDBank finalises shareholder list to pay 25 per cent share dividend

HDBank will have to finalise its shareholder list for dividend payout

According to information published by the Ho Chi Minh City Stock Exchange, HDBank has until August 27 the latest to finalise the list of shareholders entitled to receive stock dividends in 2020.

Under the approved plan, HDBank is expected to issue 398.4 million shares to pay 25 per cent stock dividends to shareholders and increase capital by more than VND3.98 trillion ($173 million). The capital for the issuance will be taken from the accumulated undistributed profits according to the 2020 financial statements which have been audited. The funds have been fully set aside as prescribed.

After completing the dividend payment, HDBank's charter capital will reach over VND20.07 trillion ($872.6 million), facilitating its high growth strategy.

HDBank has recently announced the adoption of Basel III standards. Moody’s Investors Service (Moody’s) also changed the outlook on the long-term deposit and issuer ratings of the bank to "positive" from "stable". 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 Bank's Baseline Credit Assessments over the next 12-18 months.

Despite the pandemic, HDBank is forecast to achieve positive business results, outperforming the industry average in several indexes. Currently, HDBank's asset quality is among the best in the industry with a separate bad debt ratio of only 0.8 per cent.

According to Viet Capital Securities, HDBank's net-interest margin will increase from the second quarter of the year compared to the first quarter. Service income has increased sharply with positive contributions from the bancassurance segment, showing customer acceptance as well as room for further growth. As a result, HDBank's income in 2021 is forecast to increase by 35-38 per cent against 2020, higher than the annual plan.