Capital expansion gathering pace across banking sector

A new wave of charter capital expansion is unfolding across Vietnam’s banking sector, driven by tightening regulatory standards and sustained credit growth.

- By Le Khanh

KienlongBank has set July 6 as the record date for a 29.5 per cent stock dividend, under which it plans to issue more than 170.6 million shares, lifting charter capital from $233 million to $301 million.

The move follows a strong 2025 performance, with pre-tax profit rising 68 per cent above target to $93 million, while total assets surpassed $4.1 billion for the first time.

Orient Commercial Bank (OCB) is also advancing a capital increase from equity, with July 1 fixed as the record date for nearly 399.5 million bonus shares. Charter capital is set to rise from $1.07 billion to above $1.23 billion.

At its AGM in mid-April, OCB chairman Trinh Van Tuan said the additional capital would support expansion, technology upgrades and product development.

“With the plan for continuous annual growth in business scale, increasing charter capital is necessary to strengthen the bank’s financial capacity,” he said.

According to Tuan, the lender posted pre-tax profit $49 million in the first quarter of 2026, up 37 per cent on-year, and is targeting $278 million for the full year alongside a 10 per cent expansion in total assets to $14.17 billion.

Across the system, capital raising has evolved into a coordinated balance sheet strengthening cycle rather than isolated corporate actions, reflecting growing pressure from liquidity constraints and regulatory capital requirements.