The state lender’s massive share issuance underscores accelerating credit demand, tighter Basel rules, and Vietnam’s push to strengthen bank balance sheets ahead of an expected emerging-market upgrade.
MARKET INSIDER – Vietnam’s banking sector is preparing for another year of rapid balance-sheet expansion after the State Bank of Vietnam approved VietinBank’s (CTG) plan to raise its charter capital to more than 77,000 billion VND (over US$3 billion) through a large-scale stock dividend issuance. The move signals how aggressively Vietnam’s major lenders are positioning themselves for rising credit demand, infrastructure financing, and stricter regulatory requirements.
Under the newly approved plan, VietinBank will issue nearly 2.4 billion new shares to shareholders as stock dividends — equivalent to a 44.63% payout ratio from retained earnings accumulated in 2021, 2022, and 2009–2016. Once completed, the bank’s charter capital will rise from 53,700 billion VND to 77,670 billion VND, with the issuance scheduled for Q4 2025 to Q1 2026.
VietinBank said higher charter capital is essential for expanding fixed-asset investments, raising credit limits, and boosting the bank’s ability to supply capital to the wider economy. The bank plans to deploy the additional capital into technology, infrastructure upgrades, new financial services, and enlarged credit and investment portfolios — all aimed at meeting Vietnam’s macroeconomic development targets.
This issuance is just part of a broader multi-year capital expansion strategy. VietinBank is also planning further increases through stock dividends from its 2023 earnings (12,565 billion VND) and 2024 earnings (15,600 billion VND). If all planned issuances are executed, the bank’s charter capital could exceed 105,000 billion VND, making it one of the most heavily capitalized institutions in the country.
Financial performance has been strong. VietinBank posted 29,535 billion VND in pre-tax profits in the first nine months of 2025 — up 51.4% year-on-year — driven by gains in trading and other income. The bank currently ranks second in profitability behind Vietcombank. As of Q3, total assets reached 2.76 quadrillion VND (+15.8%), customer lending hit 1.99 quadrillion VND (+15.6%), and NPLs remained controlled at 1.09%, with a robust 176.5% loan-loss coverage.
Analysts at MB Securities (MBS) forecast VietinBank’s pre-tax profit to reach 38,271 billion VND in 2025 (+20.5%) and 48,434 billion VND in 2026 (+26.6%), supported by rising fee income, accelerated bad-debt recovery, and improving market conditions. The firm expects banks’ non-interest income to benefit from FX and securities market volatility as global macro uncertainty persists.
VietinBank’s aggressive capital plan lands at a pivotal moment for Vietnam’s financial system. With the country on track for an emerging-market reclassification, banks must scale rapidly to meet global regulatory standards and absorb a potential surge in foreign inflows. The coming years will test how effectively Vietnam’s banking giants can balance profitability, capital adequacy, and credit expansion in an increasingly competitive landscape.
