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Completing capital increase to VND 11,802 billion by the end of 2024 In 2024, NCB will continue to implement the plan to issue 620 million private placement shares to increase charter capital by an additional VND 6,200 billion. It is expected that after the completion of the issuance, NCB’s charter capital will increase from VND 5,602 billion to VND 11,802 billion Ms. Bùi Thị Thanh Hương – Chairwoman of NCB’s Board of Directors, said that this is not a new plan but has been approved by the 2023 Annual General Meeting of Shareholders and has been approved by the State Bank of Vietnam (SBV). At present, NCB still has to continue to carry out a series of legal procedures in order to be able to implement this capital increase plan. “According to the development roadmap, NCB will not complete raising capital and increasing its charter capital by VND 6,200 billion until the end of the fourth quarter of 2024,” Ms. Hương said. Regarding the expected offering price of VND 10,000 per share being lower than the actual value or not, the leader of this bank shared that this price is higher than NCB’s book value at December 31, 2023, which is VND 9,000 per share. Therefore, all rights and interests of retail shareholders are fully protected, even better. NCB’s Chairwoman affirmed: “We are committed to shareholders that minority shareholders are always protected first.” |
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With the proceeds from the offering, Ms. Huong said that NCB plans to spend about VND 300 billion on technology activities; spend VND 300 billion to enhance brand value and change NCB’s brand identity (if any); Regarding the reason for choosing to issue private placement instead of issuing to existing shareholders, the Bank’s leader explained that the regulations on issuing shares to existing shareholders are very strict and NCB does not meet the requirements. At present, the Bank is still continuing to find private shareholders, investors with financial potential and management capabilities. Using the entire source of revenue to implement the restructuring plan According to NCB’s leaders, slow credit growth is one of the main reasons why the Bank’s 2023 business results did not meet expectations. Therefore, the Board of Directors proposes not to distribute profit and set up funds in 2023. Regarding the 2024 plan targets, NCB aims to increase lending to customers by 16.27%, reaching VND 64,344 billion. Customer mobilization is expected to increase by 7.51% to VND 86,050 billion, total assets will increase by 10% to VND 105,892 billion; Customer size will increase by 15% from 1 million to 1.15 million customers. NCB did not give a specific profit target but committed to use all revenue to fulfill obligations under the restructuring plan. Chairwoman Bùi Thị Thanh Hương explained that in 2024, NCB expects to continue to have no profit. In the plan submitted to the SBV, by 2028 at the earliest, all outstanding issues will be resolved and by 2030 at the latest. If the market continues to have economic shocks beyond expectations, the processing time may be extended by a few more years. Assessing the 2024 credit growth target, Mr. Tạ Kiều Hưng – NCB’s General Director said that in relative terms, a growth rate of 16% is high, but in absolute terms, this rate is not high compared to the market’s absorption demand. “Of the additional VND 9,000 billion in loans, NCB will focus on allocating more than 50% to support capital for investors to develop new projects, the remaining 50% will focus on the group of people who need to buy a house, equip assets for life. In addition, we also develop areas related to contractors, construction units for projects with state capital,” NCB CEO added. “Advancing” into the asset management territory Sharing about the business model “Digital Wealth” – a combination of asset management and mixed digital services, CEO Tạ Kiều Hưng said that this is a new strategy that NCB has chosen to implement for 5 years from 2023-2028 and will be strongly implemented in 2024 in parallel with the digital transformation strategy. By the end of 2024, NCB is expected to launch its first mixed digital asset management solution. According to Mr. Hung, NCB chooses this field because it sees great potential from the market, along with practical needs, the competition is not really high. Combining the Bank’s intrinsic features and the support of partners, this is the best choice, suitable for NCB in the coming time. “According to the roadmap expected at the end of 2024, NCB’s first asset management product will be officially launched to the market and begin a 2-3 month trial phase so that the system can run well. By mid-2025, we will begin to grow strongly, attract customers, and add more features to NCB’s products related to asset management,” Mr. Hung added. |
NCB plans to complete capital hike to VND11.802 trillion by end of Q4/2024: Chairwoman Bui Thi Thanh Huong
On the morning of April 13th, the National Citizen Commercial Joint Stock Bank (NCB, HNX: NVB) held its annual General Meeting of Shareholders in 2024. At the meeting, issues most concerned by shareholders were the private offering of shares as well as restructuring plan of the bank for the period of 2023 - 2025.
