NCB increases charter capital, drastically implements restructuring plan for 2023-2025

NCB increases charter capital, drastically implements restructuring plan for the period 2023-2025

On April 13, 2024, National Citizen Commercial Joint Stock Bank (NCB)successfully organized the 2024 Annual General Meeting of Shareholders. The Meeting approved the 2024 business plan with many positive expectations, continuing to implement the plan to increase charter capital and other proposals.

At the Meeting, the Board of Directors (BOD) and Executive Board of NCB Bank presented the report on business results, the report on the activities of the Board of Directors and the Supervisory Board in 2023, and the 2024 operating plan. Simultaneously, the bank presented a proposal to the General Meeting of Shareholders (AGM) that sought approval for the ongoing execution of the strategy to issue private shares. The proposal also outlined the intended use of the proceeds from the offering, among several other provisions. The Meeting granted its approval to the contents with a majority vote of over 99.7%.

2024 Annual General Meeting of Shareholders of National Citizen Commercial Joint Stock Bank

Increase charter capital to more than VND 11,800 billion, boost business activities in 2024

The 2024 business plan was approved by the General Meeting of Shareholders. As per this plan, the bank endeavors to attain total assets of VND 105,892 billion, reflecting a 10% growth rate in comparison to 2023. Customer loan balance and customer mobilization are anticipated to reach VND 64,344 billion and VND 86,050 billion, respectively, reflecting increases of over 16% and 8% from the conclusion of 2023.

Additionally, NCB is committed to expanding its customer base by 15% by the end of 2024, resulting in a total of 1.15 million customers. It is anticipated that the cumulative customer base of the NCB iziMobile digital banking application will increase by 34% to 595,051 by the conclusion of 2024. Additionally, the cumulative credit card count will reach 31,991 cards, reflecting a 28% growth compared to the previous year, 2023. Thus, the bank anticipates that CASA will amount to VND 6,075 billion, a 24% increase over the results for 2023.

NCB intends to offer numerous new "tailored-made" financial solution packages to its customers in order to reach this objective. Consequently, NCB shall concentrate on the following customer segments: individuals residing in major metropolitan areas and possessing income levels ranging from satisfactory to above; customers who are part of the ecosystem comprising major enterprises and partners; Enhance value for current customers via sales and promotional strategies. NCB intends to cater to the requirements of its corporate clientele by developing products in a "tailor-made" manner for large customers and small and medium-sized business customers, as well as by introducing full-package products that are organized by industry and business field. appropriate for every consumer segment.

Ms. Bui Thi Thanh Huong, Chairwoman of the Board of Directors of National Citizen Commercial Joint Stock Bank, shared with the shareholders at the Meeting

NCB maintained stable operations in 2023, ensuring operational safety through the rapid seizing of market opportunities and the continuous development of innovative products and services, notwithstanding the numerous challenges posed by the general economy. NCB accomplished the notable objective established at the 2023 Annual General Meeting of Shareholders of amassing one million customers by the conclusion of 2023. In excess of the budgeted amount, total assets arrived at approximately VND 96,250 billion, a 7% increase from the conclusion of 2022.

In addition to other proposals, the General Meeting of Shareholders authorized the plan to continue implementing the expansion of charter capital. NCB continues to execute the strategy of issuing private shares in 2024 with the objective of augmenting charter capital by VND 6,200 billion. It is anticipated that NCB's charter capital will increase from VND 5,602 billion to VND 11,802 billion upon completion of the issuance. Supplemental business operating capital (5,300 billion VND); technology and digital transformation (500 billion VND); brand identity development (200 billion VND); and facility renovation and upgrade (200 billion VND) will be funded in full by the private stock offering to investors.

The General Meeting of Shareholders voted to appoint/authorize the Board of Directors to make all decisions and organize and implement the necessary work in accordance with competent state agency guidance and the provisions of law in order to complete the increase in charter capital in accordance with the plan approved by the General Meeting of Shareholders while ensuring compliance with NCB's internal regulations and the provisions of law.

Regarding the implementation progress, the Bank said it has prepared a proposal and received approval from the State Bank of Vietnam. By preparing documents to submit to the State Securities Commission for approval of private share offerings, NCB is ensuring that its capital-raising procedures comply with applicable regulations.

NCB's 2024 Annual General Meeting of Shareholders

Drastically implement the bank restructuring plan for the period 2023-2025

In addition to breakthrough steps towards new strategic goals, at the Meeting, NCB's Board of Directors shared with shareholders about the comprehensive restructuring of the bank. Accordingly, implementing the "Project to restructure the system of credit institutions associated with handling bad debts in the period 2021-2025" according to Decision 689/QD-TTg of the Prime Minister and guidance from the State Bank of Vietnam, NCB and Ernst& Young Vietnam Co., Ltd. (E&Y), a leading reputable consulting unit in the field of banking restructuring, implements an independent, objective, and comprehensive assessment and identification about the current state of the bank, proactively identifies goals, and proposes comprehensive solutions to restructure the bank. NCB additionally collaborates with KPMG, the preeminent and reputable consulting partner in the industry, to assess the present condition of the internal control system and formulate a strategic plan to enhance it in line with NCB's future development objectives.

As of this moment, NCB stands as the initial credit institution to have finalized the construction process and submitted a restructuring plan to the SBV. On February 7, 2024, NCB received feedback from the SBV. At this time, NCB has largely finalized its restructuring plan in accordance with the SBV's requirements. The plan provides a comprehensive and detailed account of the bank's current operations in every respect. By doing so, it establishes overarching and all-encompassing objectives and resolutions to address prevailing challenges, enhance operational efficiency, and safeguard NCB's sustainable growth.

As per the feedback provided by the General Meeting of Shareholders regarding the Progress Report and the outcomes of the restructuring plan development process, the Board of Directors of NCB shall finalize, sanction, and coordinate the execution of the restructuring plan in adherence to the stipulations outlined in the Bank's Charter. It is the responsibility of the Supervisory Board to coordinate the monitoring of results and progress during the implementation of the approved restructuring plan.

Comprehensive transformation according to new strategies with pioneering solutions in the market

An important turning point occurred in 2023 when NCB collaborated with the preeminent strategic consulting firm in the world to develop a new NCB Development Strategy. As a result, NCB adopted a Bank Development Strategy with a long-term outlook and the goal of becoming a financial institution within the next decade that offers the most superior financial services and solutions to ultra-wealthy customers. Establishing a novel NCB that enhances banking experiences via inventive and imaginative thinking, serving as a hub for financial service innovation, leading the way in the development of cutting-edge technology-based products and services, striving for social responsibility as a financial institution, and making contributions to the sustainable progress of the communities served by NCB.

The National Citizen Commercial Joint Stock Bank is transforming strongly

Over the course of the previous two years, NCB has successfully executed a methodical and decisive restructuring initiative that has yielded several benefits: senior staff consolidation, enhanced operating capacity, comprehensive product and process improvements, a fortified internal control and risk management system, the management of bad debt, ongoing competitiveness enhancement, and the establishment of a solid foundation for future endeavors.

NCB declared in 2024 that it would continue implementing the subsequent phases of the new strategy and digital transformation project with unwavering resolve and ample resources. Consequently, the "Digital Wealth" business model, which integrates digital blended services with wealth management, was selected for a five-year period spanning from 2023 to 2028. Its substantial implementation is scheduled to commence in 2024, coinciding with the digital transformation strategy. By the end of 2024, it is anticipated that NCB will introduce to the Vietnamese market the first digital hybrid asset management solution that is exceptional and unprecedented. NCB is consistently striving to enhance the digital experience, particularly with regard to the Mobile App, which it intends to redesign with an entirely new interface and market-first features.

NCB reportedly signed a cooperation agreement with two leading technology partners, CMC Telecom and LUMIQ, on April 9 to deploy Cloud Computing Solutions and a Centralized Data Management System on the Google Cloud platform. The purpose of this agreement is to strengthen NCB's comprehensive digital transformation's infrastructure and technology solutions.

NCB demonstrates robust transformation efforts by remaining adaptable in the face of market difficulties and challenges, reorganizing significantly in tandem with constructing and developing the bank in accordance with a new, methodical strategic orientation, and promising to deliver to the community in the near future a multitude of exceptional, innovative, and significant contributions.