VietinBank approved to raise charter capital by nearly $304 million

May 27, 2021 | 09:53

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The prime minister has just approved supplementing state capital at Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank – HSX: CTG).

vietinbank approved to raise charter capital by nearly 304 million

As of April 24, VietinBank become one of the top five stocks with the largest market capitalisation

According to the prime minister's decision, VietinBank’s charter capital will be supplemented with more than VND6.977 trillion($303.35 million) to maintain the state's ownership ratio in the bank.

The government now owns around 64.46 per cent stake in VietinBank. Non-state investors hold around 35 per cent.

At the end of 2020, the bank approved plans to issue more than one billion shares to pay dividends at a rate of around 28.8 per cent.

As of April 24, VietinBank's capitalisation has surpassed that of milk provider giant Vinamilk – one of the long-standing blue-chips in the domestic stock market, and become one of the top five largest-cap stocks.

Le Duc Tho, chairman of VietinBank's Board of Directors, said that the bank has submitted its plan to the SBV to increase profits by 10-20 per cent. However, it is expected that the SBV would approve the plan for profit to increase 2 per cent compared to the previous years.

The bank will continue to proactively collaborate with the SBV to reach its targets in 2021. The SBV is discussing official figures and targets with the Ministry of Finance.

Since early January, the International Finance Corporation under the World Bank was no longer a major foreign shareholder of VietinBank after selling nearly 56 million shares. Tho also said that IFC’s shares were quickly absorbed.

In the first quarter of 2021, VietinBank recorded a pre-tax profit of VND8.06 trillion ($350.43 million) – 2.7 times higher than the same period last year.

By Lam Tien

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