Techcombank, one of Vietnam's largest privately-owned banks, plans to significantly increase its charter capital to over VND113.7 trillion, equivalent to approximately $4.5 billion. This marks the largest capital increase announced in the banking sector in Vietnam for the current year. Concurrently, the bank will distribute a 7% cash dividend to its shareholders, amounting to nearly VND5 trillion, sourced from retained earnings after reserves. This dividend payment is expected in the second or third quarter of 2026.
The capital increase will be achieved through various methods, including issuing bonus shares of up to 60%, issuing more than 4.28 billion shares to existing shareholders, and providing additional shares under an employee stock ownership plan (ESOP). This expansion follows a strong performance in 2025, where the bank exceeded its targets with a consolidated pre-tax profit of VND32.5 trillion, an 18.16% year-on-year increase. The growth was largely driven by an 18.36% credit expansion, despite pressures on net interest margins and well-controlled provisioning costs.
CEO Jens Lottner emphasized the bank's role in supporting Vietnam's long-term growth ambitions, especially as the country targets high-income status by 2045. Techcombank aims to strengthen its position as a capital arranger, leveraging its balance sheet and expanding partnerships with domestic and international investors. Vietnam, however, faces a significant $200 billion financing gap for its growth agenda, particularly in transport, energy, and digital infrastructure, which Lottner believes must largely come from overseas due to the local banking system's limited deposit-generating capacity. While estimates suggest $3 to $5 billion of equity may enter the country, this is considered insufficient to meet the $1.1 trillion total investment needed.
