HDBank Pays 30% Stock Dividend, Targets VND 30 Trillion Pre-Tax Profit in 2026

Overview

HDBank (HOSE: HDB) announced a 30% stock dividend for 2025, foregoing a cash dividend to retain capital for growth. The bank targets 2026 pre-tax profit of over VND 30 trillion, a 41% increase from 2025, alongside aggressive balance sheet expansion. The decision was explained by Vice Chairwoman Nguyen Thi Phuong Thao at the annual general meeting on April 24, 2026.

Key Facts

• HDBank will pay a 30% stock dividend (30 shares per 100 held) instead of cash for 2025.
• The bank targets 2026 pre-tax profit of over VND 30 trillion, up 41% year-on-year.
• Total assets target for 2026 is VND 1,194 trillion, up 28% from 2025.
• Total deposits target growth of 28% in 2026.
• Consolidated credit outstanding target is VND 805 trillion, up 37%.
• As of end-2025, HDBank had over VND 14.1 trillion in retained earnings.
• Vice Chairwoman Nguyen Thi Phuong Thao cited the need to strengthen equity capital to support medium- and long-term growth.

What Happened

At its annual general meeting on April 24, 2026, HDBank shareholders questioned the dividend policy, given the bank’s history of high payouts. Vice Chairwoman Nguyen Thi Phuong Thao acknowledged the desire for cash dividends but explained that the bank is in a strong growth phase and needs to retain capital to bolster equity. She asked shareholders to support the 30% stock dividend plan, noting that HDBank shares have delivered significant total returns over the past decade.

Chairman Kim Byoungho addressed valuation concerns, stating that while the bank’s P/B ratio has improved, the current market price still does not fully reflect intrinsic value. He expressed confidence that continued strong performance will lead to fairer valuation. CEO Nguyen Huu Dang outlined 2026 targets, including pre-tax profit above VND 30 trillion and total assets of VND 1,194 trillion.

Market Context

HDB shares closed at VND 26,000 on April 15, 2026, up 1.15% with volume of 10.7 million shares. The stock trades on HOSE in the banking sector, which has seen mixed performance amid regulatory changes and credit growth targets. HDBank’s decision to retain capital aligns with industry trends as banks seek to meet Basel III requirements and fund expansion. The 30% stock dividend is among the highest in the sector.

Strategic Significance

The stock dividend signals HDBank’s commitment to aggressive growth, leveraging retained earnings to expand its balance sheet and credit book. The 41% profit growth target implies continued market share gains in retail and SME lending. By forgoing cash dividends, management prioritizes long-term capital appreciation over near-term income, a strategy that has historically rewarded HDB shareholders. The move also strengthens the bank’s capital adequacy ratio, supporting future regulatory compliance and potential M&A.

What to Watch

• Q1 2026 earnings release to assess profit growth trajectory.
• SBV credit growth quota announcements for 2026, which could constrain or enable HDBank’s 37% credit target.
• Foreign ownership limit changes; HDBank’s current foreign room and any potential increase.
• Execution of asset growth to VND 1,194 trillion and impact on NIM and asset quality.
• Any follow-up capital raising plans, such as rights issues or convertible bonds, to further boost equity.