National Citizen Bank plans to expand charter capital to $503 mln

The National Citizen Bank (NCB) has approved a plan to issue a maximum 620 million shares via private placement for VND6.2 trillion ($262.4 million) to increase its charter capital to VND11.8 trillion ($503.3 million).

Under the plan, adopted at the bank’s annual general meeting of shareholders on Saturday, the share issuance is expected to be completed in three years until 2025.

The offerings are at least six months apart from the end of the latest, with the offering price not lower than VND10,000 ($.0.43) per share.

NCB chairwoman Bui Thanh Huong said the bank has chosen private placement instead of public offering because strategic investors, possibly foreigners, often have financial strength, technology and experience, with long-term commitments. The bank now sees the companionship of Japanese and British shareholders, she added.

“The capital raising aims to have more funds for network development, business site relocation and technology improvement; and increase financial capacity to meet international standards,” she noted.

According to a report delivered at the meeting, by the end of 2022, NCB posted total assets of nearly VND90 trillion ($3.8 billion), more than VND73.3 trillion ($3.1 billion) in deposits and VND47.7 trillion ($2 billion) in outstanding loans, all exceeding its set plans.

This year, the bank targets VND94.5 trillion ($4.03 billion) in total assets, a year-on-year increase of 5%; VND78 trillion ($3.32 billion) in deposits, up 6.4%; and VND57.7 trillion ($2.46 billion) in outstanding loans, up 21%.

To realize the above plans, the NCB leader said that the bank will focus on the individual customer segment, especially high-income customers; clients in the supply chains of large corporations with healthy financial situation; and comprehensive cooperation partners.

At the meeting, NCB shareholders elected Do Duc Minh and Nguyen Van Quang as members of the bank’s supervisory board, replacing Tran Thi Ha Giang and Tran Thi Minh Hue, who had resigned for personal reasons.