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Techcombank (TCB) proposes 15% cash dividend and capital increase plan to shareholders
Việt Nam Technological and Commercial Joint Stock Bank (Techcombank) has presented its shareholders a proposal to distribute a 15 per cent cash dividend and undergo a substantial capital increase.
The bank's current capital of over VNĐ35 trillion will be raised to VNĐ70 trillion through the issuance of bonus shares to shareholders, utilsing funds from the owner's equity. — Photo Techcombank
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The bank's current capital of over VNĐ35 trillion will be raised to more than VNĐ70 trillion through the issuance of bonus shares to shareholders, utilising funds from the owner's equity. This plan was outlined in the documents for Techcombank's upcoming Annual General Meeting, scheduled to take place on April 20 in Hà Nội.
In 2024, Techcombank aims to achieve a credit growth of 16.2 per cent (within the approved limits set by the State Bank of Việt Nam) and secure appropriate funding to match the actual credit growth. The projected profit growth for 2024 is 18.4 per cent, reaching a total of VNĐ27.1 trillion.
One significant aspect covered in the meeting documents is the dividend payout plan. With the retained earnings from 2023, Techcombank has ample funds available to distribute dividends to its shareholders. The Board of Directors proposes a cash dividend of 15 per cent per share (equivalent to VNĐ1,500 per share), based on the total number of shares in circulation at the dividend record date.
The total dividend payout is expected to total approximately VNĐ5.28 trillion. These funds will be sourced from the bank's undistributed profit, after setting aside various reserves, as indicated in Techcombank's audited separate and consolidated financial statements for 2023.
Simultaneously, the Board of Directors also recommends increasing the bank's charter capital from over VNĐ35.225 trillion to over VNĐ70.450 trillion through the issuance of shares from the owner's equity source.
The sources of owner's equity intended for the capital increase include undistributed after-tax profit, supplementary reserves for charter capital, and surplus share capital, as specified in Techcombank's audited separate and consolidated financial statements for 2023. The proposed issuance rate is 100 per cent, meaning that shareholders who own 100 shares will receive an additional 100 new shares.
The capital increase through share issuance is expected to be completed within 2024 or upon fulfilling the necessary legal procedures, as required for Techcombank.
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