BizLIVE - Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has just announced its decision on increasing its charter capital to over VND 16,088 billion through stock dividends in 2019 (phase 2) right after completing the first increase in 2020 from VND 9,810 billion to VND 12,707 billion.
HDBank Paid the Second Dividend for 2019 Thereby Increasing Its Charter Capital to Over VND 16,088 billion

The released information from the Ho Chi Minh Stock Exchange provides that HDBank has just completed the distribution of dividend and bonus shares to increase its charter capital in the first phase of 2020 from VND 9,810 billion to over VND 12,707 billion. The new charter capital has been recorded in the enterprise registration certificate issued by the Ho Chi Minh City Department of Planning and Investment on November 2, 2020.

The increase in charter capital in the first phase of 2020 was implemented by HDBank through the issuance of shares to pay the first dividend of 2019 and the issuance of bonus shares with a total rate of 30% from owners’ equity. Number of shares issued in the first phase was 289.8 million shares, out of a total of 627.8 million shares that were approved to be issued by the General Meeting of Shareholders to increase charter capital in 2020.

HDBank increased its charter capital to VND 16,088 billion through the second dividend payment of 2019. The issue rate was 26.92% of the outstanding shares under the new capital, equivalent to 35% of the outstanding shares at the time of the General Meeting of Shareholders approving the resolution on charter capital increase in 2020.

Thus, after dividend distribution and issuance of bonus shares, HDBank shareholders received dividends at a total rate of 65% in 2020.

HDBank has a history of paying high and regular dividends. Recently, this Bank has also successfully issued convertible bonds to foreign strategic partners, making the CAR ratio (under Basel II) more positive, which is currently at a good level of 10.9%. Asset quality continues to maintain with the lowest individual NPL ratio in the industry. In the context of fluctuations in the banking industry in the world, the impact of the covid-19 pandemic, HDBank was rated B1 by Moody’s, with stable outlook, are signs that this Bank will achieve AGM’s 2020 plan.