National Citizen Bank posts six-fold rise in Q2 pre-tax profit

Vietnamese private lender National Citizen Bank (NCB) reported VND49 billion ($1.94 million) in pre-tax profit in the second quarter of 2024, more than six times higher than the figure in Q2/2023.

In Q2/2024, NCB's net interest income reached VND273 billion ($10.8 million), an increase of more than VND60 billion from the same period in 2023, according to its quarter consolidated financial statement.

It also earned an additional VND29 billion ($1.15 million) in profit from foreign exchange trading activities and VND44 billion from other activities.

In H1/2024, NCB's net interest income rose more than 5% year-on-year to VND495 billion ($19.58 million).

Securities related business activities continued to be a bright spot, recording a profit of VND122.2 billion ($4.83 million), a 2.4-fold increase. After deducting taxes and fees, NCB's H1 net profit reached VND7.2 billion ($284,737).

The bank saw the value of its assets top VND103.3 trillion ($4.08 billion) in H1/2024, up 7.3% from the year’s beginning.

Lending rose 16% from the beginning of the year to VND64.2 trillion ($2.34 billion), while deposits went up 11.1% to VND8.56 trillion.

Its current account savings account (CASA) rose by more than VND483 billion ($19.1 million) compared to the end of 2023.

On a plan to increase its charter capital, NCB said it has identified 13 professional investors who’ve registered to buy private placement shares. It said it was determined to complete the plan as scheduled.

At the bank’s 2024 AGM, shareholders had approved a proposal to raise its charter capital by VND6.2 trillion ($145.18 million) by issuing private placement shares. After the issuance, NCB's charter capital is expected to increase to VND11.8 trillion ($466.63 million).

Of the proceeds, VND5.3 trillion ($211.68 million) will be added to operating capital, VND500 billion ($19.97 million) for technology and digital transformation, VND200 billion ($7.99 million) for building brand identity, and VND200 billion for renovating and upgrading facilities, the board of directors said at the AGM.

The lender aims at a total assets value of VND105.9 trillion ($2.23 billion) in 2024, up 10% year-on-year.

It expects outstanding customer loans and customer deposits to reach VND64.34 trillion ($2.57 billion) and VND86.05 trillion ($3.44 billion), up 16% and 8%, respectively. It also expects its current account savings account (CASA) to rise 24% from last year to VND6.07 trillion ($242.44 million).

The bank’s shares, listed on the Hanoi Stock Exchange (HNX) as NVB, closed Monday at VND9,600 apiece.