The Board of Directors of Loc Phat Commercial Joint Stock Bank (LPBank, code: LPB) has just issued a resolution on implementing the plan to pay dividends in cash in 2024, according to the plan approved at the 2025 Annual General Meeting of Shareholders.
Specifically, the record date for shareholders to receive dividends is May 20, 2025, with a payment rate of up to 25% (equivalent to VND 2,500 per share). This is currently the highest cash dividend in the banking sector. The payment date is expected to take place on May 28. The total amount that LPBank has set aside to pay dividends this time is more than VND 7,468 billion.
With a holding of more than 70.7 million LPB shares, equivalent to 2.76% of charter capital, LPBank Chairman of the Board of Directors Nguyen Duc Thuy expects to collect about VND 200 billion in dividends after the upcoming payment. Meanwhile, Vietnam Post Corporation - a major shareholder owning 6.54% of the bank's capital, will receive a dividend of approximately VND500 billion.
LPBank is one of the few banks that currently pay the highest cash dividends. Previously, at the 2025 Annual General Meeting of Shareholders held last April, Chairman Nguyen Duc Thuy said that the Board of Directors always wants to pay the maximum dividend to shareholders.
"Last year, we promised to pay annual dividends from 16.8% up to about 20%. LPBank's Board of Directors always wants to pay as high a rate as possible in the following years, but it also depends on many factors such as the economic situation, tariffs and fluctuations at home and abroad. In case the context is not favorable, we have to bear it," Mr. Thuy shared.
Mr. Nguyen Duc Thuy said that in the following years, the bank can distribute 20% in cash and 5-7% in shares. He also expressed his hope that shareholders will contribute more, through the use of LPBank's products "to help the bank complete its set goals, as a basis for dividend payments".
According to Standing Vice Chairman of the Board of Directors Ho Nam Tien, after many years of LPBank increasing its charter capital through dividend payments in shares, the bank's current charter capital has reached VND 29,872 billion (as of March 31, 2025) and equity capital has reached VND 45,000 billion. Currently, LPBank's minimum capital adequacy ratio (CAR) as of March 31 is 13.81%, higher than the State Bank's regulation of 8%.
Assessing the benefits of cash dividends for shareholders, Mr. Ho Nam Tien said that LPBank's Board of Directors and Executive Board have calculated that after paying dividends, optimizing the balance sheet and investments, increasing asset quality, the CAR ratio is still guaranteed, without affecting the bank's safety ratios.
Source: Mekongasean.vn
