VietABank (VAB) Gets SSC Nod for 85.7M Share Issue, Capital to Reach 9,021B VND

Overview

VietABank (HOSE: VAB) has received approval from the State Securities Commission (SSC) to issue over 85.7 million shares from equity, lifting its charter capital to nearly 9,021 billion VND. This is the first step in the bank’s plan to raise capital to 12,688 billion VND by 2026. The bank also reported strong first-half results, with pre-tax profit up 15.7% year-on-year.

Key Facts

• SSC acknowledged receipt of VietABank’s share issuance documents via Official Letter No. 7434/UBCK-QLCB dated August 7, 2026.
• The issuance involves more than 85.7 million shares from equity, with a rights ratio of 10.5% (1,000 shares entitle the holder to 105 new shares).
• Charter capital will increase to nearly 9,021 billion VND after this issuance, part of a plan to reach 12,688 billion VND by 2026.
• The issuance is sourced from retained earnings and the charter capital reserve fund as of December 31, 2025.
• As of June 30, 2026, total assets reached over 149,131 billion VND (+11.3% YoY), deposits at 111,042 billion VND (+11.2%), and loans at 96,199 billion VND (+10%).
• Pre-tax profit for H1 2026 was 826 billion VND, up 15.7% year-on-year.
• Non-performing loan ratio stood at 1.22%, well below the State Bank of Vietnam’s threshold.
• On August 11, 2026, VietABank paid 4.5 billion VND in additional taxes for fiscal years 2024 and 2025 as required by the tax authority.

What Happened

VietABank has received the green light from the State Securities Commission to proceed with its share issuance from equity. The SSC confirmed receipt of the bank’s filing (Report No. 3556/2026/BC-VAB dated July 30, 2026) and instructed VietABank to comply with public disclosure and issuance rules under Article 69 of Decree 155/2020/ND-CP. The issuance follows resolutions from the Annual General Meeting on April 25, 2026, and the Board of Directors on July 13, 2026.

With this approval, VietABank will complete its first capital increase of 2026, raising charter capital to nearly 9,021 billion VND. The bank expects the additional capital to support business expansion and strengthen its financial capacity and capital adequacy ratios. In a related development, VietABank paid 4.5 billion VND in additional taxes for 2024 and 2025 on August 11, 2026, underscoring its commitment to regulatory compliance.

Market Context

VietABank shares closed at 10,200 VND on August 12, 2026, on the HOSE. The bank’s capital raise comes amid a broader trend of Vietnamese banks bolstering their capital bases to meet Basel II requirements and support credit growth. VietABank’s H1 results show solid growth in assets, deposits, and loans, with asset quality remaining strong. The stock’s valuation reflects a mid-tier bank with improving fundamentals, though liquidity remains modest compared to larger peers.

Strategic Significance

The capital increase is a strategic move to strengthen VietABank’s balance sheet and support its medium-term growth targets. By raising capital to 12,688 billion VND by 2026, the bank aims to improve its capital adequacy ratio, enabling it to expand lending and potentially attract strategic investors. The bank’s focus on compliance, as evidenced by the tax payment, may enhance its reputation with regulators and investors. For long-term investors, the capital raise signals management’s confidence in future growth, but execution and asset quality will be key to realizing the benefits.

What to Watch

• Completion of the share issuance and listing of new shares on HOSE.
• Quarterly earnings reports to assess whether capital deployment translates into higher net interest income and profitability.
• Updates on the bank’s plan to reach 12,688 billion VND charter capital by 2026, including any additional issuance methods.
• Changes in the non-performing loan ratio and capital adequacy ratio in subsequent quarters.
• Any further regulatory actions or tax-related adjustments that could impact earnings.