The State Bank of Vietnam has approved MSB to increase its charter capital by VND3.525 trillion ($153.26 million) to VND15.275 trillion ($664.13 million) through stock issuance to pay dividends.
According to MSB, this increase is equivalent to 30 per cent of the bank's current capital. Moreover, the bank aims to issue additional 352.5 million shares to pay dividends to its existing shareholders, bringing the total number of outstanding shares to nearly 1.53 billion.
The capital to pay dividends will be taken from retained earnings by the end of 2020 after having fully set aside funds and amounts in accordance with the law.
MSB said that the capital hike is slated to ensure its capital adequacy ratios and risk management, which is in line with international standards such as Basel II and Basel III.
In March, Prudential Vietnam and MSB have renewed their strategic bancassurance partnership for a 15-year term.
MSB officially made its debut on the Ho Chi Minh City Stock Exchange (HSX) on December 23, 2020.
The bank plans to sell 100 per cent of its stake in the consumer finance company FCCOM to a foreign investor after its failure to divest 50 per cent stake to South Korean partner Hyundai Card.