OCB was approved by the State Bank to increase its charter capital to nearly VND 24,660 billion.

Orient Commercial Joint Stock Bank (OCB) has just announced in writing that it has received a dispatch from the State Bank approving the bank to increase its charter capital by a maximum of nearly VND4,110 billion by issuing shares to pay dividends according to the charter capital increase plan previously approved by the bank's General Meeting of Shareholders.

Accordingly, OCB plans to issue nearly 411 million additional shares to pay dividends to shareholders at a 5:1 exercise ratio, equivalent to shareholders owning 5 shares will receive 1 right, and for every 1 right will receive 1 new share.

The source of capital used is the accumulated undistributed profit after tax up to December 31, 2023, determined according to the audited Consolidated Financial Statements of 2023.

The implementation time is in 2024 based on the approval of the State Bank and after the State Securities Commission announces the receipt of full documents reporting the issuance of shares to pay dividends. After the issuance, OCB's charter capital is expected to increase from VND 20,548 billion to nearly VND 24,658 billion.

The proceeds from the capital increase will be used to purchase and build facilities (invest in information technology; upgrade assets, basic construction; equip fixed assets, labor tools) and supplement business capital and loan investment.

Of which, VND 1,204 billion is for purchasing and constructing facilities and VND 2,906 billion is used to supplement capital for business, investment and lending.

Regarding business situation, at the end of the first quarter of 2024, OCB recorded net interest income of VND 1,901 billion, an increase of 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.

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.

On the market, at the end of the trading session on July 3, OCB shares stopped at 14,400 VND/share with a trading volume of 742,200 units .

Source: https://www.nguoiduatin.vn/ocb-duoc-nhnn-chap-thuan-tang-von-dieu-le-len-gan-24-660-ty-dong-a671354.html