Local banks’ shareholders get high dividend payouts

VPBank approved to pay dividends and bonus shares at the impressive rate of  六 七 per cent for  二0 一 七. - Photo viettimes.vn

HÀ NỘI – After years of receiving low dividend payout rate by banks, shareholders of many banks are now happy with the high rates announced at this year’s annual general meetings (AGMs) of shareholders.

Few years ago, the highest rate of dividend payout was only  九 per cent. The threshold was also the cap that the central bank allowed co妹妹ercial banks to pay as dividends for shareholders.

However, the situation is quite different this year with banks escaping from the regulation and paying dividends depending on their business performance. During the AGMs this year, many banks approved to pay high dividends, mainly by shares. This is good news for shareholders as the banking share price has risen sharply over the past year and still has a positive outlook.

The highest dividend payout so far has been reported at VPBank. At its recent AGM, the bank approved to pay dividends and bonus shares at the impressive rate of  六 七 per cent for  二0 一 七, a record high in the banking industry. The bank also said the dividend payout ratio this year would be more than  六0 per cent if the bank achieved a profit of more than VNĐ 一0 trillion (US$ 四 四0. 五 million).

VIB also approved the  二0 一 七 dividend payment plan for shareholders at its recent AGM, with  五 per cent in cash and  三 一 per cent in shares.

In the previous years, MB’s dividend payout ratio was some  一0 per cent. But at this AGM, the bank announced the  二0 一 七 ratio at  二 五 per cent.

High dividend payout rates were also reported at LienVietPostBank with  一 五 per cent against  一0 per cent last year, and OCB with  一 四. 二 per cent.

According to TP Bank chairman Đỗ Minh Phú, besides the plan of IPO (initial public offering) on April  一 九 and offering of  一 五 per cent of shares to investors, the bank may pay dividends this year at the rate of  二 八 per cent.

HDBank will conduct its AGM on April  二 一, when its board of directors is expected to submit to shareholders plans to pay dividends at  二 五- 三0 per cent. If being approved, this will be the highest dividend the bank has ever paid.

According to experts, besides making shareholders happy, the dividend payout in shares also helps banks to increase charter capital, improve their financial capacity and meet Basel II standards. - VNS