Techcombank Wins Approval for VND 106.6 Trillion Capital Plan, Putting It on Course to Lead Vietnam's Banks

Approval sets up a 50.4% increase in charter capital

The State Bank of Vietnam approved Techcombank's plan on October 13, 2026, to increase charter capital by up to VND 35,730,974,410,000. If both planned share issues are completed, the bank's registered capital would rise from about VND 70.8624 trillion to VND 106.59338 trillion, exceeding the current levels reported by MB and VPBank.

Almost all of the increase would come from a 50% stock dividend for existing shareholders. A smaller employee share issue would add approximately VND 299.77 billion. Together, the two components represent an increase of about 50.4% over Techcombank's existing charter capital.

The approval is recorded in the government's October announcement, which also identifies the shareholder and board resolutions supporting the plan. It describes VND 106.593 trillion as the expected capital level after the share issues, rather than an amount already achieved.

That distinction matters. Regulatory permission allows the plan to proceed, but the final increase depends on the actual issuance results. Techcombank would become the third bank to reach at least VND 100 trillion in charter capital, following MB and VPBank, and would take first place using their reported current capital levels.

Charter capital is the registered value of a bank's issued shares. It is different from total assets, market value and regulatory capital, which measures the resources available to absorb losses under banking rules. A larger charter capital figure alone does not establish that a bank has the strongest balance sheet.

What shareholders and employees would receive

The dividend component has an approved value of VND 35,431,202,070,000, equivalent to more than 3.543 billion shares at a face value of VND 10,000 each. Under the 50% distribution, an investor holding 100 shares would receive another 50 shares.

Techcombank plans to fund this distribution from accumulated undistributed profits recorded in its audited standalone financial statements for 2025. This turns retained earnings into registered share capital. It does not bring in an equivalent amount of new cash from outside investors.

A proportional stock dividend also does not, by itself, increase a shareholder's percentage ownership. Investors receive more shares, but the total number of shares rises at the same rate. The bank retains resources rather than paying those resources out as a cash dividend.

The separate employee stock ownership plan, or ESOP, covers 29,977,234 shares priced at VND 10,000 each. Full subscription at that price would bring approximately VND 299.77 billion into the bank. These shares would be subject to a transfer restriction lasting one year from the end of the issuance.

The employee issue is reported as approximately 0.282% of the enlarged share base. Unlike the proportional stock dividend, issuing shares to employees can reduce the ownership percentage of existing investors who do not participate. Its scale is small beside the dividend issue, accounting for about 0.84% of the maximum capital increase.

How the October plan differs from April

The latest approval follows shareholder consent obtained through a written vote in September. An earlier account of the April 25 annual general meeting described a different package: a total dividend rate of 67%, comprising 7% in cash and 60% in shares, alongside more than 35.8 million employee shares.

That April account projected charter capital of approximately VND 113.7 trillion. The October approval instead covers a 50% stock dividend and just under 30 million employee shares, with expected charter capital of about VND 106.593 trillion. The projected totals differ by roughly VND 7.1 trillion.

The sequence of decisions is:

• April 25, 2026: The annual meeting was reported to have approved the earlier dividend and capital package.
• September 8, 2026: Shareholders approved the capital plan referenced in the October announcement.
• September 15, 2026: The board approved Resolution No. 0506/2026/NQ-HĐQT.
• October 13, 2026: The State Bank of Vietnam approved the maximum capital increase under that plan.

The September resolutions and October permission establish the package now approved by the regulator. The announcement does not explain why the share dividend and employee allocation changed from the April account, or resolve the status of the earlier cash dividend proposal. The two packages should therefore not be combined into a single distribution.

A narrow lead over other capital expansion plans

MB's charter capital reached approximately VND 100.6875 trillion after stock dividends and an offering to existing shareholders. Its offering of more than 805 million shares at VND 10,000 each raised nearly VND 8.055 trillion. Across the two issues, MB added more than VND 20 trillion to its previous capital of about VND 80.55 trillion.

VPBank completed a dividend issue of more than 2 billion shares, increasing charter capital from approximately VND 79.339 trillion to VND 100 trillion. Its outstanding share count consequently rose from more than 7.93 billion to 10 billion.

At VND 106.59338 trillion, Techcombank would stand about VND 5.906 trillion above MB and VND 6.593 trillion above VPBank's completed capital level. These comparisons use the projected Techcombank total and the completed totals reported for the other two banks.

VPBank also plans a private placement of more than 624 million shares to a foreign investor. If completed, that would take its charter capital to approximately VND 106.244 trillion, leaving Techcombank's projected lead at only about VND 349 billion, or roughly 0.33%.

VietinBank, Vietcombank and BIDV have also targeted capital levels around VND 100 trillion. Their proposals were described as largely awaiting approval from the relevant authorities after shareholder consent. The ranking therefore depends on which banks complete their plans and when, rather than on approved targets alone.

Profit grows faster than operating income

Techcombank reported profit before tax of VND 18.5 trillion for the first half of 2026, up 22.5% from a year earlier. Total operating income reached VND 28.6 trillion, an increase of 17.5%. Profit therefore grew five percentage points faster than operating income.

Second quarter profit reached VND 9.67 trillion, up 22.4% from the same period in 2025 and described by the bank as its highest quarterly profit to date. It accounted for approximately 52.3% of the reported first half total.

There is a small difference between the quarterly figures in the reports. Subtracting second quarter profit of VND 9.67 trillion from the first half total of VND 18.5 trillion implies first quarter profit of VND 8.83 trillion. The April meeting account gives VND 8.9 trillion. The VND 70 billion difference may reflect rounding, but no reconciliation is given.

The main earnings drivers were interest income after interest costs and service income after related expenses. Net interest income rose 16.3% to more than VND 17.4 trillion. Net service income increased by more than 73% to over VND 6.8 trillion, compared with less than VND 4 trillion a year earlier. Other business lines recorded declines.

This breakdown shows that the increase was not uniform across the bank. Service income expanded much faster than interest income, while lending remained a major source of revenue. The figures do not provide enough detail to attribute the faster profit growth to a particular change in costs or loan loss provisions.

How much of the annual target has been met?

Techcombank's 2026 business plan has two profit scenarios. The stronger scenario targets VND 37.5 trillion before tax, about 15% above the VND 32.538 trillion reported for 2025. The base scenario targets VND 35 trillion, an increase of approximately 7.6%.

First half profit of VND 18.5 trillion represents 49.3% of the higher target and 52.9% of the base target. To reach those goals, the bank would need another VND 19 trillion or VND 16.5 trillion respectively in the second half. Meeting the higher target would require second half profit about 2.7% above the first half result.

The April meeting account attaches different asset quality limits to the scenarios: nonperforming loans below 1.5% under the stronger plan and below 2% under the base plan. Nonperforming loans are loans on which borrowers are failing to meet repayment obligations under the applicable classification rules.

Loans to customers reached VND 847.336 trillion at the end of June, up 10.4%, while total assets exceeded VND 1.27 quadrillion. The annual meeting account described a planned 12% credit increase under the approved limit. Customer lending and regulatory credit measures are not necessarily identical, so the June growth rate cannot be treated as a precise measure of unused lending capacity.

Technology investment and selective lending

Techcombank says the capital plan will support its longer term financial base, investment in technology and data, and a capital buffer as operations expand. The bank also says it will allocate capital selectively to areas where it has competitive advantages, while controlling asset quality and maintaining capital safety.

At the April meeting, chief executive Jens Lottner outlined a strategy spanning artificial intelligence, a broader financial ecosystem and environmental, social and governance policies. The bank described a data system processing 8 billion data points daily, more than 12,500 attributes per customer and over 55 AI models. These are bank statements about its operating capabilities, not independent measurements of their effectiveness.

The wider business plan includes banking, capital markets, asset management, insurance and payments. Techcombank reported 18 million customers for 2025, up 2.7 million during the year, and assets under management of VND 645 trillion, an increase of 86%.

Chairman Ho Hung Anh described the purpose of expanding beyond conventional lending at the annual meeting:

Our development strategy doesn't rely solely on credit. Instead, the bank is boosting the capital market, including bonds, investment funds, and other financial products, thereby diversifying funding sources and supporting businesses in accessing capital. Techcombank complies with the regulations of the State Bank of Vietnam while maintaining the required safety indicators,

That strategy connects with the rapid increase in service income, although the earnings figures do not establish how much of that growth came from each activity. The capital announcement gives no budget or completion schedule for specific technology projects.

Risk measures, ratings and public contributions

Real estate lending was a subject of shareholder discussion in April. Management acknowledged its large share of the credit portfolio, while Ho Hung Anh said the bank financed projects with adequate liquidity, complete legal documentation and suitable clients. He stated that nonperforming loans in the individual and corporate real estate segments remained below 1%.

Those statements describe management's lending approach. They do not remove the need to track asset quality as lending expands. For 2025, the bank reported a nonperforming loan ratio of 1.13% and a loan loss coverage ratio of 127.9%, meaning reported provisions exceeded the value of nonperforming loans.

The capital adequacy ratio was reported at 14.6% for 2025 and 15.2% in the first quarter of 2026. This ratio compares eligible regulatory capital with assets weighted for risk. It is not the same as charter capital, and the planned stock dividend does not justify assuming an equivalent percentage increase in the ratio.

The government announcement lists credit ratings of Ba3 from Moody's, BB from S&P and BB- from Fitch. The April account also described a stable S&P outlook and positive outlooks from Moody's and Fitch. These ratings are below investment grade on the respective agency scales.

Techcombank contributed nearly VND 11 trillion to the state budget in 2025, leading private banks in the 2026 list of the 20 largest banking contributors. It was described as the first private bank on that list with contributions above VND 10 trillion. The bank also reported a sixth consecutive Best Bank in Vietnam award from Euromoney and a third consecutive year of receiving country awards from Euromoney, FinanceAsia and Global Finance.

Market reaction and the remaining steps

TCB shares closed on October 13 at VND 32,950, up VND 350, or 1.07%, for the session. It was the third consecutive daily gain, bringing the increase since October 8 to approximately 3.3%. Despite that recent rise, the shares remained 4.91% below their level at the beginning of the year.

The different performance figures cover different periods and are not contradictory. With approximately 7.09 billion shares outstanding before the planned issues, Techcombank's market capitalization was reported at roughly VND 233.492 trillion. That market value reflects the share price, whereas charter capital records issued shares at their registered face value.

The approval announcement does not give a shareholder record date, an issuance completion date or a confirmed final allocation for either component. The one year restriction on employee shares begins when that issuance ends, but no calendar date is specified. Until the issues are completed, VND 106.593 trillion remains a projected capital level.

Key Points

• The State Bank of Vietnam approved a maximum capital increase of approximately VND 35.731 trillion on October 13, 2026.
• The plan combines a 50% stock dividend with 29,977,234 employee shares priced at VND 10,000 each.
• Full completion would raise charter capital to about VND 106.593 trillion, above MB and VPBank's reported current levels.
• The approved package differs from the larger dividend and capital plan reported after the April annual meeting.
• First half profit of VND 18.5 trillion covered 49.3% of the higher annual target and 52.9% of the base target.
• Issuance dates and final results have not been specified in the approval announcement.