ABBank Begins Capital Hike with 15% Stock Dividend, Eyes HOSE Listing

An Binh Commercial Joint Stock Bank (ABBank, UPCoM: ABB) has commenced the first phase of a significant capital raising initiative, issuing a 15% stock dividend to its shareholders. The move is part of a broader plan to increase its charter capital by more than VNĐ6 trillion (US$228.1 million) to over VNĐ20 trillion ($760.3 million), strengthening its financial base for future growth.

The issuance follows a confirmation from the State Securities Commission on June 25 that it had received the necessary documentation for the bank to issue nearly 209.6 million new shares. ABBank anticipates completing the dividend payment, which will see shareholders receive 15 new shares for every 100 they own, in the first half of July pending final regulatory steps. The new shares, funded from the bank's accumulated undistributed profits, will not have any transfer restrictions.

This stock dividend is the initial step in a three-stage capital increase programme. The subsequent stages will involve a rights issue for existing shareholders and an employee stock ownership plan. Upon completion, the bank’s charter capital is projected to rise by approximately 43% from its current level. According to ABBank, the new capital will bolster its financial capacity, provide more room for credit expansion, and enhance its competitive position in a dynamic banking landscape.

The capital expansion is supported by robust earnings. In the first quarter of 2026, ABBank posted a pre-tax profit of VNĐ1.5 trillion ($57.1 million), reaching about one-third of its annual target in the first three months. The bank also secured a position among Vietnam's top 10 lenders based on trailing four-quarter return on equity (ROE), a result it attributes to its ongoing restructuring, digital transformation, and business expansion efforts.

For the full year 2026, ABBank has set several key targets, including growing total assets to VNĐ291 trillion ($11.1 billion), customer deposits to over VNĐ247 trillion, and its loan book to nearly VNĐ139 trillion. The lender also aims to maintain a non-performing loan ratio below 1.5%, improve its current account savings account ratio, and keep its loan-to-deposit ratio under 70%.

Concurrent with its capital plan, ABBank is advancing preparations to move its stock listing from the UPCoM to the Ho Chi Minh Stock Exchange. The bank has stated that increasing its charter capital beyond the VNĐ20 trillion threshold is a prerequisite for this strategic transfer. A listing on Vietnam's main bourse is expected to improve corporate transparency, widen its access to domestic and international institutional investors such as ETFs and index funds, boost share liquidity, and ultimately strengthen its market position to create long-term shareholder value.