VietABank plans to raise charter capital by about 55% to 12.688 billion dong

VietABank (VietABank Joint Stock Commercial Bank, VAB) has released materials for its 2026 Annual General Meeting (AGM), scheduled for April 25 in Hanoi. At the meeting, the bank will present a business plan for 2026, including targets for balance-sheet growth, profitability, asset quality, and a major charter-capital increase.

2026 business targets

VietABank’s plan projects total assets to reach VND 150.5 trillion by the end of 2026, up 7.1% compared with 2025. Customer deposits and issuance of debt instruments are expected to total VND 115.441 trillion, up 11%. Lending is forecast to rise to VND 101.633 trillion, up 14.5%.

The bank targets pre-tax profit of VND 1.945 trillion for 2026, up 18.2% from the previous year. VietABank also aims to keep the bad debt ratio below 3%.

Charter capital increase: from VND 8.163 trillion to up to VND 12.688 trillion

A key highlight of the AGM agenda is a proposal to raise VietABank’s charter capital substantially. The plan would increase charter capital from VND 8.163 trillion to a maximum of VND 12.688 trillion, equivalent to an increase of about 55.4%.

Three proposed capital-raising options

To implement the increase, VietABank plans to pursue three issuance routes:

• Rights issuance to existing shareholders: nearly 122.5 million new shares, increasing capital from shareholders’ equity. The issue rate is 15% (a holder of 100 shares would receive 15 new shares). With a par value of VND 10,000 per share, the total nominal value is about VND 1,225 billion. Funds would be sourced from equity, including undistributed profits and the capital reserve fund, as reflected in the standalone audited financial statements (after reserve allocations) in accordance with law.

• ESOP issuance: 20 million shares under an Employee Stock Option Plan, representing 2.45% of outstanding shares, at VND 10,000 per share. The total issuance value is VND 200 billion. The ESOP shares would be non-transferable for one year from the end of issuance.

• Additional rights issuance to existing shareholders: 310 million shares at VND 10,000 per share, with a total issuance value of VND 3,100 billion. The rights issue ratio would be 37.97%.

Use of proceeds and allocation for 2026–2027

VietABank said the additional capital is expected to be used primarily to supplement lending activity, investments, and business operations. The total allocation planned for 2026–2027 is around VND 3,300 billion.

Expansion of the ecosystem beyond traditional banking

Beyond the capital plan, VietABank is also seeking shareholder approval to expand its ecosystem through contributing capital, acquiring shares, and establishing or acquiring subsidiaries or affiliates. Target areas include securities, insurance, fintech, payment services, consumer finance, and other financial services.

In particular, the bank notes that total investments in potential enterprises could reach up to 40% of charter capital and the bank’s reserve funds, indicating a strategic shift toward expanding beyond traditional banking.