The Hồ Chí Minh City Stock Exchange (HoSE) has granted approval for the additional listing of approximately 1.2 billion shares of Việt Nam Prosperity Joint Stock Commercial Bank (VPBank or VPB) starting from Wednesday.

 

These newly listed shares were issued to strategic investor Sumitomo Mitsui Banking Corporation (SMBC) from Japan under the private placement method. The total value of the issuance amounted to over VNĐ35.9 trillion (equivalent to nearly US$1.5 billion). The shares will be subject to a transfer restriction for the next 5 years.

 

This transaction has provided VPBank with over VNĐ35.9 trillion in Tier 1 capital, making it one of the largest share sales deals to foreign partners in the Vietnamese banking and finance sector to date.

 

As a result, VPBank's charter capital has increased to VNĐ79.3 trillion, and its equity capital has reached nearly VNĐ140 trillion. In terms of equity size, VPBank is currently ranked second, only after Vietcombank (VCB), within the banking system.

 

On the stock market, as of December 6, VPB shares were trading at VNĐ19,400 per share, representing an increase of approximately 13 per cent compared to the beginning of this year.

 

In another development, VPBank completed the payment of 2022 cash dividends in November 2023, totaling over VNĐ7.9 trillion, equivalent to a dividend rate of 10 per cent.

 

Going forward, VPBank plans to pay cash dividends for five consecutive years from its after-tax profits, while also maintaining capital for business activities and growth. A representative from the bank stated that cash dividends would be paid earlier in the coming years.

 

Regarding its business activities, VPBank recorded an accumulated revenue of VNĐ27.13 trillion and a pre-tax profit of VNĐ8.3 trillion in the first 9 months of 2023, representing a decline of 12 per cent and 58 per cent respectively compared to the same period last year.

 

As of the end of September 2023, VPBank's total assets reached VNĐ780.2 trillion, marking a 23.6 per cent increase compared to the beginning of this year. VNS