The “race” to increase capital has begun to heat up when many banks are preparing to implement plans to increase charter capital this year.
The Board of Directors of Military Commercial Joint Stock Bank (MB) has just announced the payment of stock dividends from the accumulated after-tax profit in 2021.
Specifically, the bank will pay a stock dividend at the rate of 20%, meaning that shareholders owning 100 shares will receive 20 new shares. The last registration date to exercise the right is August 23, 2022.
Currently, MB’s charter capital is at VND 37,783 billion. After the successful issuance, the bank’s charter capital will increase to more than 45,300 billion. Accordingly, MB will temporarily surpass VPBank (VND 45,057 billion) to rank 4th in the system.
It is known that, in addition to paying dividends in shares, MB also plans to increase its charter capital by 892.4 billion dong through the private placement of 70 million shares to Viettel and the issuance of 19.24 million shares under the plan. Employee Selection Process (ESOP).
MB also plans to offer 65 million new individual shares, implemented in 2022 and 2023. Negotiable offering price, not lower than book value.
Closing the session on August 9, MB’s stock price stood at VND 27,350/share, up 6% since the beginning of August.
In terms of business results, in the first 6 months of the year, the bank’s consolidated pre-tax profit reached VND 11,896 billion, up 49% over the same period in 2021. MB’s business segments all had positive results in the first 6 months of the year. first month of the year. In which, the main growth driver is still in the core credit business.
As of June 30, 2022, the total assets of the consolidated bank were VND 658,274 billion, an increase of 8.4% compared to the beginning of the year. Outstanding loans to customers increased by 14.3% to VND 415,457 billion. Outstanding corporate bonds increased from VND 39,208 billion at the beginning of the year to VND 46,333 billion at the end of June, equivalent to an increase of 18%.
MB’s customer deposits increased by 3.2% to VND 396,910 billion. Similar to many other banks, demand deposits (CASA) showed signs of decline, from 48.7% at the beginning of the year to 45.5% at the end of June. However, MB is still a bank. The bank has the second highest CASA ratio in the system, just behind Techcombank (47.5%).
MB’s consolidated bad debt at the end of the second quarter of this year was VND4,976 billion, up 52% compared to the beginning of the year. For the parent bank alone, bad debt was VND3,704 billion, up 59% compared to the beginning of the year and accounted for 0.95% of total outstanding loans. The individual MB’s bad debt coverage ratio reached 271%.
Regarding the “race” to increase charter capital, besides MB, many other banks are also implementing a plan to pay dividends in shares.
For example, NamABank has just been approved by the State Bank of Vietnam (SBV) to increase its charter capital by up to 1,900 billion VND. Accordingly, this bank can increase its charter capital by a maximum of nearly 1,230 billion dong through issuing shares to pay dividends and 670 billion dong through issuing shares to increase share capital from equity.
Similarly, the State Bank of Vietnam has just approved KienlongBank to increase its charter capital from 3,653 billion VND to 4,231 billion VND according to the charter capital increase plan approved by the 2022 Annual General Meeting of Shareholders. The bank is entitled to increase its charter capital by VND 578.4 billion by issuing shares to pay dividends in 2021 to existing shareholders, equivalent to a ratio of 16%.
MSB also recently announced an increase in charter capital to VND 20,000 billion by issuing bonus shares to existing shareholders at the rate of 30% and issuing up to 14.25 million shares to employees from the source.