Vietnam Maritime Commercial Joint Stock Bank (HOSE: MSB) Announces Capital Increase Plan and Dividend Distribution
Vietnam Maritime Commercial Joint Stock Bank (MSB), stock code: MSB, has announced its capital increase plan and dividend distribution for the year 2024, following the decision approved by the Annual General Meeting of Shareholders.
MSB plans to issue a maximum of 600 million additional shares, corresponding to a 30% issuance rate (existing shareholders owning 100 shares will receive 30 new shares). This issuance will increase the bank’s charter capital from VND 20,000 billion to VND 26,000 billion, with a total capital increase of VND 6,000 billion. The expected implementation time is in the year 2024, after receiving approval from the competent state regulatory authorities.
The source of capital used for the charter capital increase comes from the undistributed after-tax profits of 2023 and previous years, after fully setting aside the required funds according to regulations. The undistributed after-tax profit as of the end of 2023 is nearly VND 8,000 billion, according to the consolidated financial statements.
The MSB management board states that the capital increase aims to consolidate the bank’s competitive position, strengthen the capital buffer, and improve financial safety indicators. Additionally, it supports medium and long-term credit capital sources, improves infrastructure, and invests in the bank’s information technology system.
In addition to the capital increase, the MSB Shareholders’ Meeting also approved the policy of distributing dividends in cash and/or shares at a maximum rate of 15% from the profits generated in 2024 and the retained earnings after completing the capital increase. The timing of the dividend advance will depend on market conditions and MSB’s business performance.
An MSB representative shared that if approved by shareholders and if business results meet expectations, the bank plans to implement a cash dividend advance in the fourth quarter of this year. “We have had this plan for a while and are awaiting approval from the General Meeting of Shareholders with a maximum advance rate of 15%,” added the bank representative.