Chairman Trinh Van Tuan: OCB stock price is lower than book value

According to Mr. Trinh Van Tuan, OCB shares are undervalued compared to other stocks in the same industry, when OCB's P/B was only 0.82 at the end of last week, while the average of private banks was 1.25. Thus, OCB shares are being discounted by 35%.

However, Mr. Tuan frankly admitted that when business results do not meet expectations, the stock price will also be affected. However, OCB has been and is offering a number of solutions to improve its financial health and business situation to create trust in the eyes of existing shareholders and potential investors:

First, OCB needs to improve its financial situation more positively, becoming one of the banks operating effectively, higher than the industry average.

OCB Chairman Mr. Trinh Van Tuan.

Next is to control existing debt well, at the same time promote the collection and handling of bad debt. Continue to promote restructuring of operations and personnel to operate more effectively. In addition to building a clear and feasible 5-year plan, regularly update and communicate to investors. Promote communication of OCB's image to both individual and corporate customers to expand market share and enhance OCB's position in the banking industry. Thereby enhancing the trust and position of OCB in the eyes of potential investors.

By 2024, OCB has also undergone strong restructuring and is gradually changing. The bank expects to achieve better results this year, if external factors do not have too much impact and the real estate market recovers.

This year, OCB paid a 7% cash dividend and issued 8% bonus shares to existing shareholders. This is the first time OCB has paid a cash dividend since listing.

According to Mr. Tuan, 2024 is a rather difficult year for the bank's business operations due to the general impact of the world and domestic economies . 2025 is also forecast to have many challenges.

However, OCB always prioritizes the interests of shareholders by paying dividends almost every year. This year, OCB has submitted to the General Meeting of Shareholders for approval the policy of paying cash dividends of 7% and 8% from capital increase issuance from equity capital.

Thus, the total benefit received by shareholders is 15% in 2025. After being approved by the General Meeting of Shareholders, OCB will submit the proposal to the State Bank and the State Securities Commission for approval. The Bank will make payment immediately after the two regulatory agencies approve. This process is expected to take several months and the Bank will disclose information to shareholders after receiving approval from state agencies.

According to Mr. Tuan, the Vietnamese stock market is considered to have much potential for long-term growth as the population participation rate is not high and the opportunity to upgrade the market to emerging status is very large.

This is also an area where banks in the system in general and OCB in particular are quite "enthusiastic" in helping banks complete the puzzle in their ecosystem, promote development, diversify products and services, and increase non-interest income for banks.

At OCB, the bank also needs an investment bank to coordinate with each other, to better serve customers, especially the priority customer group. Therefore, OCB's Board of Directors has oriented to own a securities company, aiming to make OCB become the main transaction bank for customers.

However, due to the current unfavorable market conditions, at this stage, OCB has implemented a comprehensive strategic cooperation with VIS Securities Company. In the long term, it is possible to move towards owning a securities company in the near future when conditions are favorable.

For the 2025 plan, to achieve the set plan, the bank will focus on key action plans including: Focusing on core income, increasing the proportion of fee income and CASA; Focusing on digital transformation and data development; Capital and risk management according to Basel standards; Building culture and improving human resource capacity.

In the near future, OCB will announce its financial report for the first quarter of 2025 as required by law.

Source: https://baodautu.vn/chu-tich-trinh-van-tuan-gia-co-phieu-ocb-dang-thap-hon-gia-tri-so-sach-d271633.html