Which bank pays the highest dividend in 2022?
In 2022, the State Bank of Vietnam (SBV) continues to recommend that banks do not pay cash dividends to reduce lending interest rates. This is the third year in a row that the regulator has asked banks not to pay cash dividends.
In 2021, the SBV also issued a similar directive forcing banks to switch to paying dividends in shares. The only exception to the payment of cash dividends is for state-owned banks (Vietcombank, BIDV, VietinBank) due to a request from the State Treasury.
Based on that direction, a series of banks announced plans to pay stock dividends at the 2022 annual general meeting of shareholders.
At the meeting, Vietcombank’s shareholders approved the plan to issue 856 million ordinary shares with the issuance rate of 18.1%, to pay dividends from the remaining profit in 2019 and 2020. Implementation time is in the year 2022.
Shareholders of VietinBank have also just approved the plan to issue shares to pay dividends from after-tax profits, deduct funds and distribute cash dividends in 2020. Specifically, the bank will issue more than 569 million shares to distribute. dividend, equivalent to 11.85%.
At BIDV, this bank plans to issue more than 607 million shares (equivalent to 12% of outstanding shares) to pay dividends in 2021 from undistributed after-tax profits.
After paying dividends and bonus shares at the rate of 80% in 2021, VPBank continues to plan to issue a maximum of nearly 2,238 billion shares to pay dividends and reward shareholders at the rate of 50% (shareholders). owning 1000 ordinary shares entitled to receive an additional 500 new shares). The expected implementation time is in the 2nd quarter and/or 3rd quarter of 2022.
MB also plans to increase charter capital by VND7,556 billion by issuing 755.6 million shares to pay dividends, equivalent to 20%.
Similarly, ACB shareholders approved a plan to issue more than 675 million shares to pay dividends, equivalent to a dividend ratio of 25%. Completion is expected in the third quarter of this year.
Recently, VIB’s Board of Directors approved the plan to issue more than 554.5 million shares to distribute 35% bonus shares to existing shareholders. After the issuance, the bank’s charter capital will increase to over VND 21,000 billion.
This is the third consecutive year VIB pays stock dividends: 20% in 2020 and 40% in 2021. Thanks to that, the bank’s charter capital has increased rapidly and reached the Top 15 in the system. If successfully raising capital this year, VIB will surpass a series of large banks such as SCB, Sacombank, in terms of charter capital.
Some other banks that also plan to pay stock dividends this year are MSB (30%), OCB (30%), Nam A Bank (29%), HDBank (25%), Kienlongbank (16%). , SHB (15%), LienVietPostBank (15%), SeABank (12.7%), VietABank (11%), ABBank (10%), …
Banks that say no to dividends
Besides banks with a history of paying high dividends, there are also many banks that constantly say no on this issue.
In 2022, Techcombank will continue to retain all profits after setting aside funds to supplement capital for business activities. This is the 11th year this bank has not paid a cash dividend and the fourth year in a row that it has not paid a dividend.
Answering questions from shareholders, Mr. Ho Hung Anh, Chairman of the Board of Directors of Techcombank, said that it is not necessary to pay dividends in shares at this time. Previously, in 2018 Techcombank also divided up to 200%.
“The value of the business remains the same, the stock dividend will be diluted, the market price will be adjusted. Many people think that the share price will increase after the dividend, but that’s not the case. Why don’t you think the share price can be changed? continues to increase to 100,000-200,000 VND/share. Even shareholders have to pay 5% of personal income when receiving stock dividends. “, Mr. Hung Anh said at the 2022 annual general meeting of shareholders.
Sacombank shareholders have also not received dividends for the past 6 consecutive years. In 2022, Sacombank continues to propose to retain the accumulated profit of VND 8,982 billion.
At the 2022 shareholder meeting, Sacombank’s leaders said that the retained consolidated profit until the end of 2021 is nearly 9,000 billion VND, equivalent to nearly 50% of Sacombank’s charter capital. This is the amount that can be used to pay dividends to shareholders.
However, because Sacombank is currently implementing the project, the dividend payment must wait for the approval of the State Bank. From 2019 until now, Sacombank has continuously submitted a plan to use profits to pay dividends to shareholders but still has to wait for approval from the State Bank.
Eximbank is also one of the banks that continuously did not pay dividends in recent years due to the need to handle VAMC bonds and continuously failed to hold a shareholder meeting.
Besides the “big guys”, PG Bank is the bank that has not paid dividends for the past decade. At this year’s meeting report, this bank continues to have no plan to pay dividends to shareholders. If there is no change, this will be the 10th year in a row that PG Bank has not paid a dividend.
Similarly, Saigonbank also did not mention the issue of dividend payment in the report of the General Meeting of Shareholders in 2022. Thus, it is likely that Saigonbank will enter the 5th consecutive year of not paying dividends. The most recent distribution of profits to shareholders was the 2016 dividend payment at the rate of 4%.
Previously, the Board of Directors of Saigonbank had proposed a plan to pay the 2020 dividend at 5% but did not submit it to the 2021 AGM because it had not been approved by the competent authorities.
According to Economic Life
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