AsemconnectVietnam - As the first bank to announce cash dividends in 2024, Vietnam International Commercial Joint Stock Bank (VIB - HOSE) said that on January 22, it will finalize the right to advance cash dividends with rate 6%.

This is VIB's 2023 advance dividend. Accordingly, shareholders owning 1 share will receive VND600 and with more than 2,536.8 million outstanding shares, VIB will have to spend VND1,522 billion to pay dividends to existing shareholders.
Ex-rights trading date is January 19, expected dividend payment time is February 21, 2024.
The above dividend plan has been consulted by VIB for approval in the last days of 2023.
Specifically, according to VIB's third quarter 2023 separate financial report (audited by KPMG), profit after tax in the first 3 quarters of the year is VND6,614 billion, the bank's undistributed profit is VND7,133 billion.
According to financial regulations, VIB will set aside at least 15% of the year's after-tax profit for equity funds (including 5% for the reserve fund to supplement charter capital and 10% for the finance reserve fund), the amount set aside for funds calculated on the profit of the first 3 quarters of 2023 is VND992 billion.
Thus, the source of undistributed profits after making provisions for funds is VND6,141 billion, so VIB can use part of this amount to advance cash dividends at the dividend advance rate. Cash on charter capital is 6% and still ensures compliance with capital safety and liquidity regulations of the State Bank.
Notably, according to the financial model and feasibility forecast, VIB is expected to achieve profit after tax for the whole year 2023 of VND8,640 billion and undistributed profits as of December 31, 2023 are expected to reach VND9,159 billion.
According to financial regulations, VIB will allocate a minimum amount to equity funds based on the full year 2023 profit of VND1,296 billion. Thus, the source of undistributed profits after making provisions for funds is VND7,863 billion, an increase of VND1,722 billion compared to the data as of September 30, 2023. Therefore, VIB can proactively advance cash dividends at a rate of 6% while still ensuring it does not affect equity capital and continue to ensure good safety ratios and according to the law.
At the same time, VIB believes that the implementation of cash dividends, including advance dividends of the immediately preceding fiscal year in the first quarter of each year, demonstrates consistency in the Bank's dividend payment policy and ensure the rights of shareholders.
N.Nga
Source: VITIC/Tinnhanhchungkhoan