Orient - OCB wants to raise capital to invest and lend 6,176 billion VND

DNHN - OCB wishes to raise capital and use VND 6,176 billion to supplement capital for business, investment, and lending, as well as VND 672 billion for facility procurement and construction.

Orient Commercial Joint Stock Bank (OCB, code: OCB) has 2,943 billion dongs of retained profit in 2022 and 4,094 billion dongs of retained profit in the years preceding the 2023 Annual General Meeting of Shareholders (GMS). With a total profit of 7,037 billion dongs, OCB will present shareholders with a proposal to increase charter capital to support business operations.

OCB intends to issue nearly 685 million shares to existing shareholders, representing approximately fifty percent of the company. If the proposal is approved, the charter capital of the bank will increase from VND 13,699 billion to VND 20,548 billion. The exact time of issuance is determined by the Board of Directors following approval by the appropriate authority.

OCB will use the proceeds from the capital increase to supplement business, investment, and lending capital with VND 6,176 billion and to acquire and construct facilities with VND 672 billion.

The 2023 Annual General Meeting of Shareholders of OCB will be held at the Sheraton Saigon Hotel in Ho Chi Minh City on April 28 in the morning. Regarding the business plan for 2023, OCB anticipates a 25% increase in total assets to VND 242,152 billion. Total deposits in Market 1 increased by 26% to 173,087 billion, while outstanding loans increased by approximately 20% to the same amount.

The bank also stated that the credit balance will be adjusted by the State Bank-approved growth limit. OCB anticipates a pre-tax profit of 6,000 billion dongs in 2023, a 37% increase from 2022. The ratio of bad debts is below 3%.

In 2022, OCB's net interest income increased by 21%, amounting to VND6,948 billion.

Specifically for the service segment - one of the bank's primary profit generators -, positive results were also achieved, with net service revenue in 2022 increasing by 29% compared to 2021, reaching VND 1 trillion.

In 2022, card transaction sales increased by 83% compared to 2021, while card net fee collection increased by 122%. And income from the insurance industry grew by 23%, and account management services grew by 55%.

However, this bank has increased its provision for credit risks to over 1,067 billion dongs in 2022. Therefore, OCB's profit before taxes for the entire year of 2022 was 4,389 billion VND, a 20% decrease from the previous year.

OCB had anticipated that its profit before taxes in 2022 would reach VND 7,110 billion. Therefore, by the end of 2022, this bank has not yet reached its goal.

P.V (t/h)