Bank AGMs heat up with capital race, M&A and leadership shake-ups

The banking sector is entering the annual general meeting (AGM) season with a packed agenda, including capital increases, mergers and acquisitions (M&A), foreign investment and leadership reshuffles.

The developments highlight a new phase of restructuring as banks seek to strengthen their capital base, expand market share and prepare for the next growth cycle.

Capital race

One of the key themes of this year’s AGM season is the race to raise charter capital, particularly among large State-owned lenders.

VietinBank and BIDV have both scheduled their AGMs for April 24, while Vietcombank is expected to hold its meeting later in April.

Although VietinBank and BIDV remain the two largest lenders in the system by total assets, both have fallen behind several private banks in terms of charter capital. Vietcombank currently leads the system after issuing a 49.5 per cent stock dividend in early 2025, while VietinBank and BIDV rank fourth and sixth, respectively.

The gap partly reflects lengthy approval procedures required for State-owned lenders when issuing new shares or paying stock dividends.

However, Resolution 79-NQ/TW on the development of the State economy is expected to provide a new mechanism for capital expansion. The policy allows State-owned banks to retain post-tax profits to increase charter capital and reinvest, rather than paying all dividends in cash to the State budget.

Analysts say the mechanism could help strengthen capital adequacy ratios and improve the competitiveness of State lenders, particularly as the country prepares for a surge in public investment and infrastructure development during the 2026–30 period.

Phạm Thị Hoàng Anh, deputy director in charge of the Executive Board at the Banking Academy of Vietnam, said the policy would allow State-owned banks to increase capital more sustainably while improving their capital adequacy ratios (CAR).

Meanwhile, Nguyễn Thanh Tùng, chairman of Vietcombank, said banking growth – from credit expansion to technology investment and compliance with international standards – depends heavily on the scale and quality of a bank’s capital base.

Several lenders including Asia Commercial Bank (ACB), An Binh Bank (ABBank), LienVietPost Bank (LPBank) and Nam A Bank are expected to propose stock dividend plans or share issuances to raise capital at their AGMs this year.

Many private banks have already completed major capital increases over the past year, including Vietnam Maritime Bank (MSB), Vietnam International Bank (VIB), Saigon-Hanoi Bank (SHB) and Ho Chi Minh City Development Bank (HDBank).

M&A and leadership changes

Alongside capital expansion, potential mergers and acquisitions and leadership changes are also drawing investor attention.

One of the most closely watched deals is the planned private placement by BIDV, which has attracted interest from dozens of investors and could raise more than VNĐ10 trillion (US$379 million).

Another major transaction involves the proposed sale of up to 6.5 per cent of shares in Vietcombank, which could bring in around $1.3–1.4 billion if completed.

In the private sector, the market is also watching plans to sell about 32.5 per cent of shares in Sacombank previously linked to former shareholders and pledged to the Vietnam Asset Management Company.

Meanwhile, some lenders are seeking new foreign strategic investors. VIB is expected to look for a new partner after Commonwealth Bank of Australia exited its stake, while SHB has also explored options to bring in a strategic investor.

Leadership reshuffles are also emerging as a major theme. Eximbank is expected to replace six out of seven board members at the upcoming AGM, while Sacombank recently appointed Nguyễn Đức Thụy as chief executive as it enters the final stage of its restructuring.

Growth outlook

Banks are also presenting ambitious business plans for 2026 despite a more challenging environment.

HDBank has set a target of more than 30 per cent growth in pre-tax profit this year. Meanwhile, VPBank aims for consolidated pre-tax profit of about VNĐ41.3 trillion in 2026, up roughly 35 per cent from last year. MB is targeting consolidated profit of around VNĐ39.5 trillion, with credit and deposit growth projected at about 35 per cent.

The targets follow robust earnings last year, when profits of 27 listed banks rose about 19 per cent year-on-year.

Despite these plans, analysts warn that tighter credit growth limits, rising funding costs and increasing non-performing loans could create challenges for the sector in 2026.

Still, analysts from Vietcombank Securities JSC forecast that the banking sector’s profits could grow around 20 per cent this year, supported by improving net interest margins and a gradual recovery in loan demand.