SHB holds annual shareholder meeting in Hanoi on April 23. (Photo: VNA)Hanoi (VNA) – TheSaigon-Hanoi Commercial Joint Stock Bank (SHB) has a plan to increase itscharter capital by over 5.53 trillion VND (237.48 million USD) to more than17.57 trillion VND (754.5 million USD) via public offering of shares and payingdividends in the form of additional stocks.
At the bank’s annual shareholder meeting in Hanoi on April 23, Director GeneralNguyen Van Le said that share issuance is important to the bank to improve itscompetitive capacity in the context of global economic integration.
SHB will issue some 252.6 million shares valued at 2.52 trillion VND (108.2million USD) to pay dividends in 2017 and 2018, and offer nearly 300.8 millionbonus shares to its existing shareholders in the proportion of 4:1, which meansan investor can buy one extra share for every four shares already held by himor her.
Regarding the use of additional charter capital, Le said that some 850 billionVND (36.5 million USD) will be set aside to develop the bank’s informationtechnology system and fixed assets for expanding business network. Meanwhile,the remainder will be used to scale up its lending activities.
At the meeting, SHB also submitted its plan to increase its presence in the IvoryCoast through setting up a branch or a joint-venture to meet capital demand ofVietnamese enterprises, who are increasing investments in the country.
In 2019, SHB targets a place in top five largest commercial banks in Vietnam interms of total assets. The bank expects its before-tax profit at over 3trillion VND (128.76 million USD), up 47 percent from 2018; capitalmobilisation at 283.9 trillion VND (12.19 billion USD), rising 16.6 percent;and outstanding debt at 261.59 trillion VND (11.23 billion USD), growing 13percent.
The dividend payout ratio will be 11 percent this year.-VNA
VNA
