The proposal of Maritime Bank Joint-stock Commercial Bank (HOSE: MSB) to raise its charter capital by more than VND3.5 trillion (US$155 million) from the current level to nearly VND15.3 billion through stock dividends has been approved by the Vietnam central bank.
“The rise is equivalent to 30 percent of the bank’s current capital of VND11.75 trillion. The additional capital would come from the bank’s share issuance to pay dividends”, Nguyen Hoang Linh, CEO at MSB told Vietnam Insider.
“MSB will issue an additional 352.5 million shares to pay dividends to existing shareholders, raising the total number of outstanding shares to nearly 1.53 billion”, the CEO said.
According the latest announcement from its website, the capital used to pay dividends is sourced from undistributed profit after tax after setting aside funds in 2020. The bank’s consolidated audited financial statement for 2020 showed that the undistributed profit after tax that can be used to pay dividends is up to nearly VND4.8 trillion.
The rise in charter capital is to ensure capital adequacy ratios and risk management to meet Basel II international standards, heading toward Basel III, and to improve financial capacity to meet requirements for business development, investment in strategic projects in the 2021 – 2023 period, according to a report by Vietnam News.
MSB is expected to finalize the list of shareholders entitled to receive dividends in September and complete the dividend payment this year, Vietnam News reported.
Founded since 1991, MSB is the first commercial bank established during the period of Vietnam’s economic reform and rapid development. Over 30 years of development, thanks to the collective strength and pioneering spirit of our founding shareholders, MSB has constantly set new ground-breaking milestones in the finance and banking sphere.
“It is the pioneering spirit being cultivated and passed down from one generation to another that will continue to be the lodestar for the bank to follow and keep on innovating”, the bank’s CEO said.
MSB has adopted the Basel II international risk management model since 2019. This confirms the bank’s safe, efficient and transparent operations based on international risk management principles and helps raise the position and competitiveness of MSB in the market.
These strengths have always been the sustainable foundations that helped the bank grow steadily in the past 30 years.