Private lender OCB targets 66% rise in 2024 pre-tax profit

Vietnam’s Orient Commercial Bank (OCB) is targeting a pre-tax profit of nearly VND6.9 trillion ($274 million) this year, an increase of 66% from 2023.

At its 2024 AGM on Monday, the bank said it will pay share dividends in 2023 at a rate of 20% and issue shares under the Employment Stock Ownership Plan (ESOP) to increase its charter capital to VND24.72 trillion ($982 million).

After the issuances, Azure Bank, Ltd. will remain a major shareholder of OCB with a 15% stake.

OCB’s total assets at the end of 2024 are expected to increase 19% to VND286.6 trillion ($11.38 billion), while its total capital mobilization from individuals and organizations is estimated to hit over VND197.3 trillion ($7.83 million), up 17% year-on-year.

Outstanding loans are expected to expand 20% to VND177.6 trillion ($7.05 million), and its bad debt ratio will be curbed at below 3%, the threshold set by the central bank.

This year, OCB aims to focus on retail activities and the small- and medium-sized enterprise (SME) segment, and gradually restructure its business portfolio towards diversifying revenue sources and improving asset quality, said chairman Trinh Van Tuan.

In 2023, the bank's pre-tax profit hit VND4.14 trillion ($164.4 million), down 6% compared to 2022, due to an increase in provision costs to respond to credit risks, he said.

Tuan said last year marked an important step forward in OCB's risk management efforts. The bank announced the application of a cloud credit risk platform following Basel II protocols, becoming the first bank in Vietnam to complete all the advanced Basel requirements for international risk management.

This year, OCB will implement strategies to improve competitiveness and promote sustainable development, positioning itself as a "pioneer green bank in Vietnam", he stated.

The bank will continue to accelerate digital transformation with the launch of its OCB OMNI digital bank version 4.0; promote Open Banking and expand technology applications in its operations, he added. OCB will also expand its network nationwide with five more branches and 12 transaction offices, he revealed.

The bank's stock, listed on the Ho Chi Minh Stock Exchange as OCB, closed Monday at VND14,050 ($0.56), down 5.39% due to a broad-based selloff.