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Thursday,  Jun 29,2017,15:54 (GMT+7)

Many banks do not pay dividends

The Saigon Times Daily
Tuesday,  Apr 25,2017,20:48 (GMT+7)
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Many banks do not pay dividends

The Saigon Times Daily

HCMC - Under pressure from new capital injections and further restructuring, many banks have decided not to pay dividends for shareholders, says Nguoi Lao Dong newspaper.

At Techcombank, despite a pre-tax profit of nearly VND4 trillion in 2016, up 96.2% over the preceding year and higher than targeted, its leadership has decided not to pay a dividend. Its shareholder meeting has reached agreement to use the entire profit of 2016 for the long-term development of the bank, improving the capital adequacy ratio and thereby increasing the efficiency of their capital use and value added to their stock, said a Techcombank representative.

HDBank also reaped impressive business results last year with consolidated pre-tax profit of nearly VND1.15 trillion, a year-on-year rise of 46%. After many years of paying high cash dividends, HDBank this year pays a dividend of 7% in shares and 2% in bonus shares in a bid to revise up their chartered.

Meanwhile, VPBank has proposed stock dividend payment at its general meeting to raise their chartered capital by VND3-4 trillion, meeting the bank’s operations and complying with the safety ratio.

Vo Quoc Thang, board chairman of Kienlongbank, said his bank this year would focus on raising their equity, improving their finances, complying with the capital adequacy ratio as prescribed by the central bank and meeting the requirements for development in 2016-2020.

It is expected that in the second quarter of 2017, Kienlongbank shares will be traded on the UPCoM, thus the retention of dividends will increase the book value of their shares. In the long run, it will be more beneficial for Kienlongbank if a dividend for 2016 is not paid.

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