HDBank Announces Dividend Rights

Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank) announced the resolution of the Board of Directors on a 30% dividend payment (10% in cash and 20% in stock) for the fiscal year of 2023.

With this dividend payout, HDBank has the highest dividend rate in 2024 (excluding Techcombank without any dividend payment in previous years). HDBank always pays the highest dividend rate in the market to shareholders. At its recent Annual General Meeting of Shareholders, the bank proposed a dividend plan for 2025, up to 30%, including a maximum of 15% in cash maximum of 15% in cash.

According to its published documents, the record date to exercise the right to dividends is July 15, 2024 and the ex-date is July 12, 2024. The expected payment date for cash dividend is July 26, 2024. The shareholders in the record list will be entitled to receive VND1,000 per share.

At the same time, HDBank also distributed a 20% stock dividend as per the resolution of the Annual General Meeting. Shareholders whose names are recorded in the shareholder list on the record date are entitled to receive stock dividends at a distribution ratio of 100:20 (shareholders who own 100 shares are entitled to receive 20 new shares). The record and ex-date will be announced later when the bank gets approval from relevant authorities, expected in the third quarter of 2024.

According to the financial statement of the first quarter of 2024, HDBank had a credit growth of over 6.2%, relatively high in the industry. The lender paid VND4,028 billion, up 46.8% year on year. The return on equity (ROE) was 26.7%, a relatively high share in the market. At the same time, the bank ensures capital adequacy ratios and high asset quality among the industry leaders.

In 2024, HDBank will boost the pursuit of sustainable growth and development (ESG) strategy. The bank aimed to continue high and inclusive growth targets, including a pre-tax profit of VND16,000 billion, up 21.8% year on year. ROE ratio was 24.6% while a low bad debt ratio below was maintained 1.5%.

By Le Phuong, Vietnam Business Forum