National Citizen Bank to double charter capital to $471 mln

Vietnam's National Citizen Bank (NCB) on Saturday reaffirmed a plan to issue private placement shares to increase its charter capital by VND6.2 trillion to VND11.8 trillion ($471.3 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, said the board of directors at the 2024 AGM of shareholders.

The bank, listed on the Hanoi Stock Exchange (HNX) as NVB, aims to reach total assets of VND105.9 trillion ($2.23 billion) in 2024, up 10% against 2023.

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

At end-2023, NCB successfully reached its goal of 1 million customers. Total assets hit nearly VND96.25 trillion ($3.84 billion), rising 7% year-on-year and surpassing its target.

The board of directors said NCB is the first credit institution in Vietnam to complete drafting a restructuring plan and submit it to the State Bank of Vietnam. The central bank gave comments on the draft in February 2024.

2023 marked an important milestone as NCB cooperated with a leading global consultant to build a new development strategy, it said.

Over the past two years, embarking on comprehensive restructuring, NCB has consolidated its senior personnel, enhanced operating capacity, and comprehensively improved its products and processes. It has also strengthened internal control and risk management systems; handled bad debts; improved competitiveness; and prepared a solid foundation for future growth.

At the end of 2024, NCB will launch the first digital mixed asset management solution in the Vietnamese market. The bank is constantly perfecting its digital experience, aiming to renovate its mobile app with a new interface and unique features first seen in the market, the board said.

NVB closed Friday at VND10,300 ($0.41) per share.