KienlongBank (KLB) AGM Approves 29.5% Dividend, Charter Capital Hike to VND 7,500B

Overview

KienlongBank (HOSE: KLB) held its 2026 Annual General Meeting on April 23, approving a charter capital increase to over VND 7,500 billion and maintaining a 29.5% dividend for 2026. The bank reported record 2025 pre-tax profit of VND 2,323 billion, exceeding its target by 68%, driven by its digital transformation strategy.

Key Facts

• 2025 pre-tax profit reached VND 2,323 billion, 168% of the annual plan.
• 2026 pre-tax profit target set at VND 2,600 billion, representing 12% year-on-year growth.
• Charter capital to be raised to over VND 7,500 billion (from current level).
• Dividend for 2026 approved at 29.5% (cash and/or stock).
• Total assets, deposits, and credit are targeted to grow 12-14% in 2026.
• 98% of customer transactions are now conducted via digital channels.
• The bank deployed Kiloba AI into core processes to optimize operations and personalize customer experience.

What Happened

At the 2026 AGM held online on April 23, KienlongBank shareholders voted overwhelmingly in favor of all key proposals. Management reported that 2025 was a record year, with pre-tax profit of VND 2,323 billion, surpassing the target by 68%. Key financial metrics such as ROE, NIM, and ROA ranked among the top in the banking sector.

The bank attributed its performance to the “Digital Era Breakthrough” strategy, with 98% of transactions now digital. The adoption of Kiloba AI in core processes improved operational efficiency, reduced costs, and enhanced risk management. For 2026, the bank set a cautious pre-tax profit target of VND 2,600 billion, up 12% year-on-year, and aims to grow total assets, deposits, and credit by 12-14%. Shareholders also approved a charter capital increase to over VND 7,500 billion and a 29.5% dividend for 2026, maintaining an attractive payout policy.

Market Context

KLB closed at VND 14,000 on April 10, 2026, up 1.07% with volume of 505,000 shares. The stock trades on HOSE in the banking sector, which has seen mixed performance amid regulatory changes and interest rate trends. KienlongBank’s record 2025 results and high dividend yield position it as a potential income play among mid-cap banks, though the capital increase may dilute near-term earnings per share.

Strategic Significance

The 29.5% dividend underscores KienlongBank’s commitment to shareholder returns while it simultaneously raises capital to support growth. The digital transformation strategy, including AI integration, has driven operational efficiency and cost reduction, enabling the bank to achieve top-tier profitability metrics. The capital increase to over VND 7,500 billion will strengthen the bank’s capital adequacy ratio, supporting credit expansion and potential M&A or branch network expansion. This dual approach of rewarding shareholders and reinvesting for growth could enhance long-term value if the bank sustains its ROE momentum.

What to Watch

• Q1 2026 earnings release to gauge whether profit growth is on track for the 12% target.
• Details of the capital increase method (rights issue, private placement, or dividend reinvestment) and timeline.
• Update on the relocation of the head office from Kien Giang province, as approved at the AGM.
• Progress of Kiloba AI deployment and its impact on cost-to-income ratio in upcoming quarters.
• Any changes in foreign ownership limits or strategic investor interest following the capital increase.