Flashnote
30 March 2025
Earnings distribution and dividend policy
VIB detailed its FY25 capital raising and dividend distribution plan, including:
- Bonus shares: Issuing 417.1 million shares as a bonus issue, equating to 14% of outstanding shares.
- Employee stock ownership plan (ESOP): Issuing 7.8 million shares (0.26% of total outstanding shares) at VND10,000/share. Given the foreign ownership limit (FOL) remains low at 4.99%, only approximately 0.39 million additional shares will be available for foreign investors after the ESOP issuance.
- Cash dividends: Paying VND700/share for FY24, implying a dividend yield of 3.5%. Total dividend payments of VND2.1 trillion represent 5.0% of total equity (VND41.8 trillion) and 23% of FY24 net profit.
VIB’s capital adequacy ratio (CAR) remained healthy at 11.9% at end-FY24 (slightly improved from 11.7% in FY23), comfortably supporting planned dividend payments and expected balance sheet growth.
Maintaining Add rating and target price
VIB shares have declined 5% over the past month and currently trade at an FY25 P/B ratio of 1.24x, representing a 7% premium relative to private peers' average (1.16x). We affirm our Add rating and current target price for VIB.
We are reviewing our financial projections. VIB’s FY25 earnings guidance closely matches our current estimates. However, its balance sheet expansion targets look ambitious, likely reflecting proactive monetary policies and strong regulatory support from the State Bank of Vietnam.
Financial statements and key data
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Explanation of Institutional Equity Research Ratings
Buy: Expected to rise by more than 20% on an absolute basis in the next 12 months
Add: Expected to rise by between 5% and 20% on an absolute basis in the next 12 months
Hold: Expected to rise or decline by less than 5% on an absolute basis in the next 12 months
Reduce: Expected to decline by between 5% and 20% on an absolute basis in the next 12 months
Sell: Expected to decline by more than 20% on an absolute basis in the next 12 months
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