Bank Mellat's Capital Grew From 35 to 338 Trillion Tomans; Why Vabmellat's EPS Shouldn't Be Compared to Old Figures (Wednesday, July 8, 2026)

Bank Mellat's (Tehran Stock Exchange ticker Vabmellat, وبملت) registered capital has risen in four separate stages over less than three years, from 35.3 trillion tomans at the end of Iranian fiscal year 1402 (ending March 2024) to 338.2 trillion tomans in May 2026 (Ordibehesht 1405), a nearly tenfold increase funded mostly from retained earnings and asset revaluation surpluses rather than shareholders' cash. This rapid pace explains why Vabmellat's reported earnings per share (EPS) varies across sources, and why comparing it without accounting for the underlying share count can be misleading.

Background

According to official disclosures, Bank Mellat registered the first capital increase of this run on December 25, 2023, a 101% increase from retained earnings that took registered capital from 35.3 to 71 trillion tomans. In Iranian fiscal year 1403 (2024/25), a second increase of roughly 70.4% brought capital to 121 trillion tomans. A third stage, approved at an extraordinary general meeting on July 22, 2025 and registered on October 20, 2025, added 96.5% (a mix of asset-revaluation surplus and a smaller cash portion, with no preemptive rights for existing holders) and brought capital to 237.8 trillion tomans; that same figure underpinned the 2,378,441 million-share count used in Sahmino's earlier report on Vabmellat's forward P/E (published July 7, 2026). A fourth and most recent stage, a 42% bonus-share increase from retained earnings, was registered in May 2026 (Ordibehesht 1405), taking registered capital to 338.2 trillion tomans and the share count to roughly 3.382 billion shares, a figure not yet reflected in Sahmino's prior coverage of this stock.

Key numbers

Stage	Registration date	Growth	Registered capital after
First increase	Dec 25, 2023	101%	71 trillion tomans
Second increase	FY 1403 (2024/25)	~70.4%	121 trillion tomans
Third increase	Oct 20, 2025	96.5%	237.8 trillion tomans
Fourth increase	May 2026 (Ordibehesht 1405)	42%	338.2 trillion tomans
H1 FY1404 EPS (on post-third-increase share count)	End of Shahrivar 1404 (Sept 2025)	up 36% year on year	335 rials

Drivers

Large state-owned banks, Bank Mellat included, have faced sustained pressure in recent years to strengthen their capital-adequacy ratios, driven by both central bank regulatory requirements and rapid balance-sheet growth (rising deposits and loans). Because cash contributions from shareholders are practically limited for a bank this size, most of these increases have been funded from retained earnings or from revaluing assets (mainly branches and real estate, during inflationary years) rather than selling new shares to the public. This method does not dilute existing shareholders' stakes, but it multiplies the share count several times over, which is why EPS and other per-share ratios must always be read against their reporting date.

Outlook

This difference in basis explains why some sources report Vabmellat's H1 FY1404 EPS at close to 650 rials, while restated figures following the October 2025 capital increase compute the same profit at 335 rials; both numbers describe the same profit on two different share counts. Factoring in the fourth capital increase from May 2026, any EPS or price-to-earnings calculation for Vabmellat going forward should use the new share count, close to 3.382 billion shares, or the resulting figure will understate the true count. This note offers no new valuation estimate; it is intended only to clarify the basis of the calculation.

What to watch

The most reliable way to confirm whether the new shares from the May 2026 capital increase have been credited to shareholders' accounts and reflected in Vabmellat's trading board is to check Codal disclosures and the ticker's page on tsetmc.com. Bank Mellat's audited fiscal year 1404 financial statements and its annual general meeting are also events that could clarify the actual FY1404 EPS and the new basis for these calculations.

This article is for informational and educational purposes only and does not constitute advice to buy, sell, or hold any security. Investing in capital markets carries risk, and the responsibility for investment decisions rests with the investor.