An HDBank transaction office in HCM City (Photo courtesy of the bank)HCMCity (VNS/VNA) - The Ho Chi Minh City DevelopmentJoint Stock Commercial Bank (HDBank) has announced plans to increase itscharter capital to more than 20.273 trillion VND (879.48 million USD) by payingdividends for 2020 in shares and an employee stock option plan.
According to informationpublished by the Ho Chi Minh Stock Exchange on June 4, the HDBank board ofdirectors approved the plan to hike the charter capital in 2021 as approved atthe bank’s annual general meeting in April.
The bank will increase itscharter capital by 3.984 trillion VND (172.83 million USD) by issuing more than398 million shares as dividends for 2020 at a rate of 25 percent fromundistributed profits.
The lender will also issue20 million shares to employees (ESOP).
The HDB share closed onJune 3 at 35,800 VND with a lot of foreign buying.
In the first quarterHDBank reported a pre-tax profit of more than 2.1 trillion VND (91.1 millionUSD), an increase of 68 percent year-on-year, with income from services upsharply.
Its return on equity andreturn on assets increased strongly to 26.3 percent and 2.1 percent, itscapital adequacy ratio (based on Basel II standards) was over 12 percent whileits standalone bad debts ratio was only 1.1 percent.
International creditrating agency Moody's Investors Service (Moody's) recently upgraded HDBank'soutlook from "stable" to "positive." The positive outlookreflects Moody's view that improvements in asset quality over recent years,which could translate into lower credit costs and higher profitability, couldraise the banks' Baseline Credit Assessments (BCAs) over the next 12 -- 18months/.
