MBB AGM 2026: 10% Cash Dividend, 15% Stock Dividend, Capital Hike to VND 102.7T

Overview

Military Commercial Joint Stock Bank (MBB) held its 2026 Annual General Meeting on April 18, approving a 10% cash dividend and a 15% stock dividend from 2025 retained earnings. The bank also outlined a three-part capital increase plan to raise its charter capital from VND 80.55 trillion to a maximum of VND 102.69 trillion. The 2026 business plan targets pretax profit of VND 39.4 trillion, up 15% year-on-year, and total assets surpassing VND 2 quadrillion.

Key Facts

• 2025 pretax profit reached VND 34,268 billion, up 18.9% YoY and exceeding plan by 8.9%.
• 2026 pretax profit target: VND 39,400 billion (+15%).
• Total assets target: VND 2 quadrillion (+28% from VND 1.6 quadrillion at end-2025).
• Cash dividend: 10% (VND 8,055 billion).
• Stock dividend: 15% (VND 12,082 billion via 1.2 billion shares).
• Rights issue: 805.5 million shares at VND 10,000/share (10% ratio).
• Private placement: up to 200 million shares (including 62 million previously approved).
• Charter capital target: VND 102,687 billion (from VND 80,550 billion).

What Happened

At the AGM held in Hanoi, MBB management presented the 2026 business plan and dividend proposal. Shareholders approved a combined dividend payout of 25% (10% cash, 15% stock) from 2025 profits. The capital increase plan comprises three components: a stock dividend issuance, a rights offering to existing shareholders at VND 10,000 per share, and a private placement of up to 200 million shares. Chairman Luu Trung Thai addressed shareholder concerns about the complexity of the dividend and capital increase structure, noting that the rights issue price was set at a discount to book value to benefit existing shareholders.

During the Q&A session, shareholders questioned the rationale behind the multi-step dividend and capital increase plan, particularly the tax implications of receiving stock dividends followed by a cash call. Management explained that the structure aims to optimize capital adequacy while providing returns to shareholders.

Market Context

MBB shares closed at VND 27,000 on April 15, down 0.37% with volume of 11 million shares. The stock trades on HOSE with a market capitalization of approximately VND 217 trillion. The bank is among the top five Vietnamese lenders by assets and has been a leader in asset growth (43.1% in 2025). The 2026 plan implies continued aggressive expansion, with credit growth targeted at 30% (subject to SBV limits) and ROE of 20-21%.

Strategic Significance

The capital increase to over VND 102 trillion will strengthen MBB’s capital base, supporting its rapid asset growth and compliance with Basel III standards. The combined dividend and rights issue structure allows the bank to retain earnings while raising fresh equity, balancing shareholder returns with capital needs. The private placement component may attract strategic investors, potentially improving governance and foreign ownership. The 2026 profit target of VND 39.4 trillion implies a forward P/E of roughly 5.5x at current price, which is attractive relative to sector peers.

What to Watch

• Execution of the rights issue and private placement, including pricing and investor demand.
• Q2 2026 earnings release to gauge progress toward the 15% profit growth target.
• SBV approval of the 30% credit growth target and any macro policy changes.
• NPL ratio trend, with management targeting below 1.5%.
• Foreign ownership limit changes and potential interest from overseas investors in the private placement.