The ranking of 10 banks with the largest charter capital has no change compared to the end of 2019. In particular, Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) continues to maintain the leading position with more than 40.220 trillion dong, after completing the sale of capital to KEB Hana Bank in October last year. Two giant banks including Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) and Commercial Joint Stock Bank for Foreign Trae of Vietnam (Vietcombank) are respectively in the second and third place with charter capital of over 37 trillion dong.
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank) are following with charter capital of respectively over 35.001 trillion and 30.372 trillion dong (data as of the end of June 2019). Notably, Techcombank is also the only private joint stock bank to have a charter capital of over 30 trillion dong.
The charter capital of the five leading banks alone account for nearly 44 percent of the total charter capital of 28 surveyed banks.
In addition, banks with high charter capital also included banks such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank, 25.299 trillion dong), Military Commercial Joint Stock Bank (MBBank, 24.370 trillion dong, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, 18.852 trillion dong), Asia Commercial Joint Stock Bank (ACB, 16.627 trillion dong), and Saigon Hanoi Commercial Joint Stock Bank (SHB, 15.231 trillion dong).
The differentiation and gap between banks is fairly clear when the charter capital of the leading bank has far exceeded 30 trillion dong, while in some small banks, the charter capital is just around the legal capital level, such as Petrolimex Group Commercial Joint Stock Bank (PGBank, three trillion dong), Saigon Commercial Joint Stock Bank for Industry and Trade (Saigonbank, 3.080 trillion dong), Viet Capital Commercial Joint Stock Bank (VietCapitalBank, 3.171 trillion dong), Kien Long Commercial Joint Stock Bank (Kienlongbank, 3.236 trillion dong), or Viet A Commercial Joint Stock Bank (VietABank, 3.499 trillion dong), etc.
In 2020, although most banks target to increase charter capital, according to data updated from banks’ consolidated financial statements in the first quarter (Q1) of 2020, only three surveyed banks have raised charter capital, including Saigon Hanoi Commercial Joint Stock Bank (SHB), Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), and MBBank.
In particularly, from February 17th to April 27th 2020, SHB successfully offered nearly 300.8 million shares, increasing its charter capital by 45.88 percent to 17.558 trillion dong compared to December 2019. SHB’s charter capital increase is the basis for the bank to fully complete all pillars of Basel II.
LienVietPostBank in Q1 2020 also completed the issuance of 88.8 million shares, thereby increasing charter capital from 8.881 trillion dong to nearly 9.770 trillion dong. The bank issued nearly 82.5 million shares to pay dividends from the after-tax profit undistributed as of December 31st 2018, and issued 6.3 million bonus shares to increase charter capital from the capital surplus.
In the end of January 2020, MBBank received approval of the State Bank of Vietnam (SBV to increase charter capital from 23.727 trillion dong to 24.417 trillion dong at the bank’s request.
Some banks plan to increase charter capital this year.
With positive business results in 2019, Viet A Commercial Joint Stock Bank (VietABank), at the beginning of 2020, was approved by the SBV to increase charter capital from 3.098 trillion dong to nearly 5.005 trillion dong by issuing about 150.5 million shares to existing shareholders. The purpose of VietABank’s charter capital increase is to meet Basel II standards, promote investment in information technology, and improve financial capacity to expand the scale.
The SBV also approved the charter capital increase of Nam A Commercial Joint Stock Bank (NamABank) from 3.890 trillion to five trillion dong via three options: offering over 43.9 million shares to existing shareholders (accounting for 13.1 percent of the current charter capital), carrying out a private placement of 50.3 million shares (15 percent of charter capital), and issuing 16.67 million shares to employees under the Employee Stock Ownership Plan (ESOP) (five percent of charter capital).
In 2020, National Citizen Commercial Joint Stock Bank (NCB) also plans to increase charter capital by three trillion dong to reach 7.101 trillion dong, equivalent to an increase of over 73%. The bank expects to issue 10 million shares to employees and 290 million shares to existing shareholders in Q1 at 10,000 dong per share.
Meanwhile, at the 2020 AGM held of May 23rd, VietinBank’s representative proposed a plan to pay cash dividends at zero percent, which means to retain all profit or pay dividends in shares to increase equity, meeting the requirement for business operation development.
At the AGM on May 27th, TPBank shareholders also approved the plan to increase charter capital by 20 percent to 10.2 trillion dong.
Thus, with the share issuance plans of some banks to increase charter capital in the near future, the new charter capital ranking by the end of 2020 is expected to see many changes compared to the present time.