OCB Bank Chairman 'feels sad' because of low stock valuation

At the 2025 Annual General Meeting of Shareholders (AGM) of OCB Bank, shareholders questioned the Board of Directors (BOD) about the prolonged low price of the bank's shares and the possibility of recovery of these shares.

OCB Bank's 2025 Annual General Meeting of Shareholders takes place in Ho Chi Minh City. (Photo: Dai Viet)

Mr. Trinh Van Tuan, Chairman of the Board of Directors of OCB Bank, said that the bank's management is only trying to work, while the stock price is decided by the market and shareholders. However, he is also very "sad" about the low valuation of OCB's shares. Currently, the P/B ratio (measuring the stock price) of joint stock commercial banks is equivalent to 1.25 - 1.3 book value. Meanwhile, OCB's price is only 0.82, meaning that OCB's valuation is about 30-35% lower than that of banks in the average group.

“The stock price is determined by the market, but I would like to affirm that if you invest in OCB, you need to have a long-term vision. My family and I are the largest individual investors in the bank, so I have great confidence in OCB's operations. I hope that in the near future, the bank's shares will be valued at their inherent value,” said Mr. Tuan.

Mr. Trinh Van Tuan, Chairman of the Board of Directors of OCB Bank. (Photo: Dai Viet)

Mr. Tuan frankly admitted that when business results do not meet expectations, the stock price will also be affected. However, OCB has been and is proposing a number of solutions to improve its financial health and business situation to create trust in the eyes of existing shareholders and potential investors. One of those solutions is to improve the financial situation more positively and operate more effectively.

Next is to control existing debt well, while promoting the collection and handling of bad debt. In addition, the bank will also continue to promote restructuring of operations and personnel to operate more effectively.

According to Mr. Tuan, 2024 is a rather difficult year for the bank's business operations due to the general impact of the world and domestic economies . 2025 is also forecast to have many challenges. However, OCB always prioritizes the interests of shareholders through dividend payments.

This year, OCB submitted to the General Meeting of Shareholders for approval a policy of paying 7% cash dividends and 8% from capital increase issuance from equity capital. Thus, the total benefit shareholders receive is 15% in 2025. After being approved by the General Meeting of Shareholders, OCB will submit to the State Bank and the State Securities Commission for approval of the policy. The bank will pay immediately after the two regulatory agencies approve. This process is expected to take several months.

Mr. Pham Hong Hai, General Director of OCB Bank, shared that the bank's business results in 2024 have not met expectations due to an increase in bad debts, specifically debts from individual customers. In the coming time, the bank will increase credit risk provisions, strengthen reserve buffers, and invest in facilities and technology. These activities may reduce the bank's profits in the short term, but in the long term, they will create a very good development momentum.

“In 2025, we will focus on digital transformation, data development, improving human resource quality, and diversifying products,” said Mr. Hai.

According to Mr. Hai, OCB's total revenue in the first quarter of 2025 reached about VND 2,273 billion, equivalent to the same period last year, pre-tax profit reached VND 893 billion, reaching 17% of the yearly plan. In 2025, this bank aims to increase its charter capital from VND 24,658 billion to VND 26,631 billion. Pre-tax profit is expected to reach VND 5,338 billion, an increase of 33% compared to 2024.

The bank also targets total assets to increase by 13% compared to the end of 2024, estimated at VND316,779 billion in 2025. Total mobilization and total outstanding loans in market 1 will increase by 14% and 16% respectively; the bad debt ratio will remain below 3%.

DAI VIET

Source: https://vtcnews.vn/chu-tich-ngan-hang-ocb-chanh-long-vi-co-phieu-dinh-gia-thap-ar939242.html