National Commercial Joint Stock Bank (HoSE: NCB) recently announced the documents for the 2024 annual general meeting of shareholders. Accordingly, by the end of 2023, NCB recorded total assets of VND 96,265 billion, achieving 102% of the set plan. The bank's capital mobilization reached VND 80,043 billion, reaching 103% of the plan. However, NCB's total outstanding loans only reached 96% of the set target of VND 55,344 billion.
That being said, in 2023, NCB set a profit target of 16 billion VND, but at the end of the year, the bank recorded a loss of 656 billion VND.
NCB said that the reason the bank has not completed the profit target assigned by the General Meeting of Shareholders is mainly due to a serious decline in fee and service revenue due to general difficulties in the whole market, especially insurance cross-selling; credit revenue did not meet expectations due to the credit growth target assigned by the State Bank, and credit growth was slower than expected.
In 2024, NCB aims to have total assets of VND105,892 billion, an increase of 10% compared to 2023. The bank plans to increase customer loans by 16.27% to VND64,344 billion, and customer deposits by 7.51% to VND86,050 billion. The customer base is expected to increase by 15% from 1 million to 1.15 million customers.
Regarding pre-tax profit, NCB was more cautious when not giving a specific figure but committed to using all revenue to fulfill obligations under the restructuring plan.
According to NCB, in 2024, the world economy will still face many challenges and uncertainties. In addition to political tensions, climate change and natural disasters, the world economic picture, although still bright, has not yet recovered to the level before the COVID-19 pandemic.
Vietnam's economic forecast for 2024 will have both opportunities and challenges. Besides optimistic forecasts about the economy, there are still many challenges and difficulties from potential risks of the world economy, the consequences of the Covid-19 pandemic that are still lingering and tight monetary policy.
Due to negative after-tax profit in 2023, NCB's Board of Directors has submitted to the General Meeting of Shareholders not to distribute profits and set aside funds in 2023.
However, the bank still submitted to the General Meeting of Shareholders for approval to continue implementing the plan to issue individual shares to increase charter capital and the plan to use the proceeds from the offering. Accordingly, the above plan was approved by the General Meeting of Shareholders in April 2023 and approved by the State Bank.
Accordingly, NCB will issue and offer 620 million shares at VND10,000/share, aiming to increase its charter capital by VND6,200 billion. If the issuance is successful, NCB's charter capital will increase from VND5,602 billion to VND11,802 billion.
According to the plan, NCB will issue immediately after being approved by the State Securities Commission (expected in the second quarter of 2024). The transfer of these shares is restricted within 1 year from the date of completion of the offering.
The total amount of money raised from the private offering of shares to investors, expected to be VND 6,200 billion, will be allocated as follows: VND 200 billion will be used to renovate and upgrade facilities, VND 200 billion will be used to build brand recognition, VND 500 billion will be used for technology and digital transformation, and the remaining VND 5,300 billion will be used to supplement working capital.
NCB's 2024 Annual General Meeting of Shareholders is expected to be held on April 13, 2024 at Hung Vuong Convention Center, 37 Hung Vuong, Hanoi .
Source
Comment (0)