ACB Dividend 2025: 20% Payout Despite First Profit Drop in 13 Years

Overview

Asia Commercial Bank (ACB, HOSE) has announced a 20% dividend for 2025, comprising 7% cash and 13% stock, with a total payout value exceeding VND 10,273 billion. The dividend comes despite a 7% decline in net profit for 2025, the bank’s first annual profit drop in 13 years. ACB plans to increase the dividend to 25% in 2026.

Key Facts

• ACB’s 2025 dividend totals 20%: 7% cash (VND 700 per share) and 13% stock (13 new shares per 100 held).
• Total payout value is over VND 10,273 billion.
• The stock dividend will require issuance of nearly 668 million new shares, raising charter capital from VND 51,366 billion to VND 58,044 billion.
• Net profit for 2025 was VND 15,625 billion, down 7% year-on-year, the first decline since 2013.
• Pre-tax profit for 2025 was VND 19,539 billion, also down 7%.
• The dividend payout ratio is approximately 66% of 2025 net profit.
• ACB targets 2026 pre-tax profit of VND 22,269 billion, up 14%, and plans to raise the dividend to 25% (10% cash + 15% stock).

What Happened

On June 12, 2026, ACB shares traded ex-dividend for the 2025 dividend. The record date is June 16, and the cash payment is scheduled for June 23. The dividend consists of a 7% cash portion (VND 700 per share) and a 13% stock portion. The stock dividend will be funded from retained earnings as of December 31, 2025, after appropriations to reserves.

ACB’s 2025 net profit fell 7% to VND 15,625 billion, marking the first annual decline since 2013. The bank attributed the drop to a sharp increase in credit risk provisioning costs in Q4 2025, which were 13 times higher than the same period in 2024. Despite the profit decline, the board maintained a 20% dividend, lower than the 25% paid consistently from 2020 to 2024. For 2026, ACB has announced a target of 25% dividend, with 10% cash and 15% stock.

Market Context

ACB shares closed at VND 26,500 on June 12, 2026, unchanged from the previous session, with heavy volume of over 61 million shares. The stock has been under pressure amid the broader market’s struggle to hold above 1,800 points. The VN-Index recovered to 1,803 points in the morning session but with weak breadth and low liquidity. Foreign investors remained net sellers for the fifth consecutive session. ACB’s dividend announcement comes at a time when the banking sector is facing margin compression and rising provisioning costs.

Strategic Significance

ACB’s decision to maintain a high dividend payout despite a profit decline signals management’s confidence in the bank’s capital adequacy and future earnings recovery. The 66% payout ratio is aggressive but supported by strong retained earnings. The planned dividend increase to 25% in 2026, coupled with a 14% profit growth target, suggests the bank expects provisioning costs to normalize. However, the reliance on stock dividends (13% of 20%) dilutes existing shareholders, and the cash component (7%) is lower than historical levels. Investors should assess whether the profit recovery is achievable given the macroeconomic headwinds and credit risk environment.

What to Watch

• ACB’s Q2 2026 earnings release, expected in July 2026, for signs of profit recovery and provisioning trends.
• The bank’s NPL ratio and credit cost trajectory, particularly after the spike in Q4 2025.
• SBV policy on credit growth limits and interest rate direction, which impacts net interest margin.
• Foreign ownership changes: ACB’s foreign room is currently near its limit; any changes could affect liquidity.
• Execution of the 2026 dividend plan: confirmation of 25% payout in the 2026 AGM resolution.