VPBank to issue additional shares and increase charter capital to nearly $2 billion

July 30, 2021 | 15:27

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VPBank will issue a maximum of more than 1.97 billion shares to existing shareholders to raise its charter capital.

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VPBank is among the most efficient commercial lenders in Vietnam.

Vietnam Prosperity Joint Stock Commercial Bank (VPBank, HSX: VPB) has just announced the results of shareholders' opinions on the bank's charter capital plan.

The bank's shareholders approved the plan to increase VPBank's charter capital in 2021 by issuing shares to pay dividends, from the bank’s investment fund, and the reserve fund to supplement charter capital.

Accordingly, VPBank will issue about 1.97 billion shares to existing shareholders, equivalent to 80 per cent of the bank’s outstanding shares. In which, 62.15 per cent of bonus shares are for paying dividends and 17.85 per cent are equity shares.

After successful issuance, VPBank's charter capital will increase to more than VND45.06 trillion (nearly $2 billion). The bank aims to complete all procedures in the third or fourth quarter of this year.

In the first half of 2021, VPBank recorded a consolidated pre-tax profit of more than VND9 trillion ($391 million), up 37.2 per cent over the same period in 2020.

With this result, after several consecutive quarters of improvement, VPBank's return on assets reached 3.3 per cent for the first time, and its return on equity reached 25.7 per cent.

With this, the bank is among the most efficient commercial lenders in Vietnam.

As of June 30, VPBank's consolidated non-performing loan ratio was controlled at 2.94 per cent (as the group), and at the individual commercial bank at 1.73 per cent.

In May, VPBank announced setting its maximum foreign ownership limit at 15 per cent, with plans to make a private placement for a foreign strategic investor.

Previously, Japanese financial giant Sumitomo Mitsui Financial Group (SMFG) acquired 49 per cent stake, equivalent to $1.4 billion, in FE Credit – VPBank’s consumer finance arm.

By Nhat Minh

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