Domestic banks’ shareholders get high dividend payouts
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.
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| (Source: viettimes.vn) |
Few years ago, the highest rate of dividend payout was only 9%. The threshold was also the cap that the central bank allowed commercial 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 67% for 2017, a record high in the banking industry.
The bank also said the dividend payout ratio this year would be more than 60% if the bank achieved a profit of more than VND10 trillion (US$440.5 million).
VIB also approved the 2017 dividend payment plan for shareholders at its recent AGM, with 5% in cash and 31% in shares.
In the previous years, MB’s dividend payout ratio was some 10%. But at this AGM, the bank announced the 2017 ratio at 25%.
High dividend payout rates were also reported at LienVietPostBank with 15% against 10% last year, and OCB with 14.2%.
According to TP Bank chairman Do Minh Phu, besides the plan of IPO (initial public offering) on April 19 and offering of 15% of shares to investors, the bank may pay dividends this year at the rate of 28%.
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.
