Techcombank (TCB) Plans Record Charter Capital Hike to VND 113,739 Billion

Overview

Techcombank (TCB) has announced a plan to increase its charter capital from VND 70,862 billion to VND 113,739 billion through a 60% stock dividend and an ESOP issuance. If successful, this will make TCB the largest bank by charter capital in Vietnam, surpassing current leaders Vietcombank, MB, VPBank, VietinBank, and BIDV. The bank also declared a 7% cash dividend for 2025 and set 2026 profit targets of VND 35,000-37,500 billion.

Key Facts

• Techcombank plans to issue 4.25 billion shares (60% of outstanding shares) from equity and 35.9 million ESOP shares at VND 10,000 per share.
• Charter capital will rise from VND 70,862 billion to VND 113,739 billion, making TCB the largest bank by charter capital in Vietnam.
• The bank will pay a 7% cash dividend (VND 700 per share) on May 20, 2025, with payment on June 10, 2025, totaling approximately VND 4,900 billion.
• 2026 profit targets: VND 37,500 billion (up 15%) under scenario 1, or VND 35,000 billion (up 7.6%) under scenario 2.
• Non-performing loan (NPL) targets: below 1.5% (scenario 1) or below 2% (scenario 2).
• Credit growth target of 12% for 2026, aligned with approved limits.
• The capital increase is subject to approval from the State Securities Commission and is expected to be completed in 2026.

What Happened

Techcombank’s Board of Directors approved a resolution to increase charter capital through a stock dividend from retained earnings and an ESOP issuance. The plan involves issuing 4.25 billion shares (60% of current outstanding shares) to existing shareholders and 35.9 million ESOP shares at a preferential price of VND 10,000 per share. The total number of shares outstanding would reach 11.37 billion, raising charter capital to VND 113,739 billion.

In addition, the bank announced a 7% cash dividend for 2025, with the record date set for May 20, 2025, and payment on June 10, 2025. For 2026, Techcombank outlined two business scenarios: profit before tax of VND 37,500 billion (up 15%) with NPLs under 1.5%, or VND 35,000 billion (up 7.6%) with NPLs under 2%. The bank also targets 12% credit growth and aims to become the first Vietnamese bank to fully integrate AI into operations.

Market Context

Techcombank (TCB) closed at VND 34,000 on May 14, 2026, up 1.19% with volume of 10.2 million shares. The stock trades on HOSE. The capital raise comes as Vietnamese banks compete to strengthen balance sheets amid rising credit demand and regulatory pressure on capital adequacy. TCB’s move would leapfrog it ahead of state-owned giants like Vietcombank and BIDV in charter capital, signaling a shift in the competitive landscape.

Strategic Significance

The capital increase positions Techcombank to expand lending capacity and invest in technology, particularly AI-driven operations. By becoming the largest bank by charter capital, TCB enhances its ability to underwrite large corporate loans and compete for market share in retail and SME banking. The focus on AI and ecosystem expansion beyond traditional banking (capital markets, wealth management, cross-border payments) suggests a long-term strategy to differentiate through innovation and efficiency.

What to Watch

• Approval timeline from the State Securities Commission for the capital increase.
• Q2 2025 earnings report to assess profit momentum and NPL trends.
• Execution of AI integration and its impact on cost-to-income ratio.
• Competitor responses, especially from Vietcombank and MB, which may also pursue capital raises.
• Foreign ownership limit dynamics, as TCB’s increased float could attract foreign investors.