OCB reported pre-tax profit of VND 1,214 billion in the first quarter of 2024, bad debt increased to 2.87%

Orient Commercial Joint Stock Bank (OCB) has just announced its business results for the first quarter of 2024 with net interest income reaching VND 1,901 billion, up 8.6% over the same period last year.

The bank's non-interest income also recorded positive results when net profit from foreign exchange trading reached nearly VND118 billion, up 2.4 times over the same period last year. Net profit from other activities reached nearly VND134 billion, up 3.4 times over the first quarter of 2023.

On the other hand, OCB's net profit from service activities decreased slightly by 2.8% to VND119.5 billion; trading securities activities recorded VND85 million, while in the same period last year, the profit was VND123 million.

Notably, net profit from trading investment securities decreased sharply by 8.4 times compared to the same period last year to VND 15.3 billion due to the cost of trading investment securities increasing sharply from VND 3.2 billion last year to nearly VND 94 billion.

During the period, the bank reduced its risk provisioning expenses from nearly VND343 billion last year to VND204 billion, a decrease of 40.5% due to the reversal of provisions after the bank completed handling about 50% of "other pending debts that had assets foreclosed and assigned".

As a result, OCB reported pre-tax profit of VND1,214 billion, up 23%; after-tax profit of nearly VND954 billion, up 21.4% over the same period last year.

As of March 31, 2024, OCB's total assets were recorded at nearly VND 236,980 billion, down slightly by 1.3% compared to the beginning of the year. Of which, deposits at the State Bank decreased by 73% compared to 2023 to nearly VND 1,865 billion. OCB's deposits at other credit institutions and loans to other credit institutions increased from nearly VND 32,304 billion last year to nearly VND 41,037 billion.

On this day, OCB's customer loans increased slightly by 2.8% to VND148,649 billion. Customer deposits also increased slightly by 0.6% to VND126,679 billion.

Regarding loan quality, OCB's total bad debt at the end of March 2024 was VND 4,340 billion, an increase of 11.16% compared to the total bad debt of VND 3,904 billion at the end of 2023.

Of which, substandard debt (group 3 debt) increased by 7.4% to VND 1,039 billion; doubtful debt (group 4 debt) increased from VND 1,256 billion last year to VND 1,515 billion and debt with the possibility of losing capital (group 5 debt) increased from VND 1,681 billion last year to nearly VND 1,786 billion. As a result, the ratio of bad debt/outstanding loans increased from 2.65% to 2.87%.

In a related development, the OCB General Meeting of Shareholders on April 15 approved the 2024 business plan, with the target of total assets increasing by 19%, pre-tax profit reaching VND 6,885 billion, up 66% compared to 2023. Thus, by the end of the first quarter of 2024, OCB had completed 17.6% of the set target.

Right after the General Meeting of Shareholders, OCB announced information about Mr. Nguyen Dinh Tung submitting his resignation from the position of General Director on April 23.

According to the information on the bank's website, Mr. Nguyen Dinh Tung was appointed General Director of Orient Commercial Joint Stock Bank from August 24, 2012.

Mr. Tung graduated with an MBA from Maastricht University, Netherlands. He has over 30 years of experience working in the banking and finance industry in Vietnam and abroad and has held the following positions: Deputy General Director (Business Manager - Vietnam Maritime Commercial Joint Stock Bank),

Permanent Vice Chairman of the Board of Directors (Mekong Bank), Country Director (ING Private Banking, Singapore), Deputy General Director (In charge of Corporate Banking - Vietnam International Commercial Joint Stock Bank)… .

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