HDBank shareholders anticipating highest dividend yield in banking sector

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank; HoSE: HDB) has announced a Board of Directors’ resolution to implement a 30 per cent dividend payout for 2023, consisting of 10 per cent in cash and 20 per cent in stock.

The bank has consistently led the market in dividend distribution for several years. At its recent annual general meeting, it presented shareholders with plans to distribute dividends expected to reach 30 per cent in 2025, including a maximum of 15 per cent in cash.

According to published documents, the deadline for registering to receive cash dividends is July 15, with the ex-dividend date set for July 12. The cash dividend payment is scheduled for July 26. Shareholders listed on the registration date will receive VND1,000 (3.92 cents) per share.

HDBank also intends to distribute stock dividends based on the resolution approved at the shareholders’ general meeting, at a rate of 20 per cent. Shareholders listed on the registration date will have the right to receive stock dividends at a ratio of 100:20 (every 100 shares held will receive 20 new shares). The announcement of the shareholder record date for exercising rights is pending approval by relevant authorities, expected in the third quarter of 2024.

Regarding business performance, the Q1 2024 financial report indicates that HDBank posted credit growth exceeding 6.2 per cent; a notable result within the industry. Pre-tax profit reached VND4.028 trillion ($157.9 million), marking a 46.8 per cent increase compared to the same period last year. Return on equity (ROE) stood at 26.7 per cent, leading the industry. Additionally, the bank maintained high capital safety ratios and asset quality ranking among the top in the industry.

In 2024, HDBank is accelerating the execution of its growth and sustainable development strategy (ESG). It aims to sustain high and comprehensive growth targets, including a pre-tax profit target of VND16 trillion ($627.45 million), up 21.8 per cent from 2023, and an ROE of 24.6 per cent, while keeping its non-performing loan (NPL) ratio at below 1.5 per cent.