NCB completes plan to double charter capital to nearly VND 11,800 billion

National Citizen Commercial Joint Stock Bank (NCB) has just announced the resolution of the BOD, approving the results of the private share offering to increase charter capital.

Consequently, NCB has effectively allocated 99.65% of the shares available to domestic investors, totaling over 617 million shares, each with a par value of VND 10,000. The issuance's end date is November 26, 2024.

There is a one-year transfer restriction on the issued shares from the issuance date. The total amount raised from this offering is more than VND 6,178 billion.

After successfully issuing the above shares, the total number of outstanding voting shares of NCB increased to nearly 1,180 million shares, officially increasing the bank's charter capital to almost VND 11,800 billion.

NCB plans to use all proceeds from this private share offering to supplement capital for business operations, technology and digital transformation, building brand identity, and renovating and upgrading facilities.

In mid-June 2024, NCB finalized a list of 13 professional investors, comprising 12 individuals and one investment fund, registered to participate in this offering. Among them, two banking executives, Ms. Bui Thi Thanh Huong—Chairwoman of the Board of Directors—and Mr. Duong The Bang—Member of the Board of Directors of NCB—have also committed to capital contributions. By November 26, 2024, twelve individual investors had fulfilled their capital contributions.

The NCB representative said that increasing charter capital is a key part of NCB's long-term and strong transformation process, which is in line with the bank's strategic goals. The goal is to create a new NCB that offers banking services through new and creative thinking, positions itself as the center of financial service innovation, and leads the way in developing products and services on the latest technology platform. This will help the bank become socially responsible and contribute to the long-term growth of the communities it serves.

The supplementary financial resources illustrate the bank's resolve and decisive measures in the extensive restructuring process, as per the restructuring plan sanctioned by relevant authorities, ensuring the bank operates securely, soundly, and efficiently in compliance with legal regulations and the mandates of regulatory agencies. At the same time, these resources help NCB maintain its increasing competitiveness in the market.

The roadmap indicates that NCB will persist in augmenting its capital, with the expectation that its charter capital will surpass VND 29,000 billion by 2028. This is in line with the Restructuring Plan, which has received approval from competent authorities. This plan will aid NCB in consolidating its financial resources, boosting medium- and long-term capital, and expanding its business operations. The ultimate goal is to establish NCB as a prestigious, healthy, and effective bank, offering the best financial services and solutions available in the market.

It is known that 2023-2024 is identified by NCB as the period of building a solid foundation for a comprehensive transformation. The bank is constantly improving its technology platform to serve the goal of comprehensive digitalization, investing in solutions, and products, services, increasing value for customers, and has worked with the world's leading strategic consulting organization to build and vigorously implement a new strategy for the period 2023-2028.

As of September 30, 2024, NCB has reached a customer base of more than 1.24 million customers, equal to 160% of the annual plan and a growth of 24.22% compared to the end of 2023.

NCB's total assets as of September 30, 2024, reached nearly VND 108,900 billion. Compared to the target approved by the 2024 Annual General Meeting of Shareholders last April, NCB has completed 100% of the customer lending plan and exceeded the yearly plan for total assets and capital mobilization (103% and 110%, respectively) after only 9 months.