According to the recently announced Q1/2023 Financial Report, National Citizen Commercial Joint Stock Bank (NCB, HNX: NVB) continued to grow new customers, reaching more than 748,000 customers, with customer term deposits at the bank reaching the highest level in nearly 2 years.
At the end of the first quarter of 2023, NCB's pre-tax profit reached VND5.5 billion. Foreign exchange trading continued to be a bright spot for NCB, reaching VND62 billion in profit, a sharp increase compared to the loss of VND4.8 billion in the same period last year.
This period, the bank spent VND263 billion on operating expenses and VND5.6 billion on credit risk provisions, a sharp decrease of nearly 74% compared to the same period last year.
NCB's operating safety ratios also continue to be maintained and ensured within the limits prescribed by the State Bank.
As of March 31, 2023, the liquidity reserve ratio remained at 14.12%, the maximum ratio of short-term funds used for medium- and long-term lending reached 23.6%, in compliance with the regulations of the State Bank. This result shows that the bank is maintaining a "liquidity buffer" that is resilient to market fluctuations.
As of March 31, 2023, the bank's total assets reached VND 82,932 billion. Of which, customer loans remained at over VND 47,701 billion.
Regarding capital, total customer mobilization reached VND72,204 billion. Notably, customer term deposits during the period reached over VND67,474 billion, the highest level in the past 6 quarters.
NCB said that the launch of the NCB iziBankbiz application for corporate customers and the launch of the new interface of the NCB iziMobile digital banking application helped the bank record new customer growth in the first quarter of 2023, with the customer base reaching more than 748,000 customers, an increase of 3% compared to the end of 2022 - closer to the target of 1 million customers that NCB set at the recent General Meeting of Shareholders.
According to NCB representative, although the business results from the main business activities did not grow significantly compared to the same period, they still achieved the target and demonstrated the efforts of the leadership and staff of NCB, especially in the context of the economy still facing many difficulties that negatively affected the production and business activities of enterprises, and the high interest rate level in the market in recent times.
Regarding this year's plan, the bank aims to reach total assets of VND94,500 billion by the end of 2023, up 5% compared to the beginning of the year. Customer mobilization will reach VND78,000 billion and customer loans will reach VND57,700 billion, up 6% and 21% respectively compared to the beginning of the year.
Pre-provision profit according to the restructuring plan proposed for 2023 is 16 billion VND, down 61% compared to 2022. Target customer size is 1 million customers.
NCB's recent 2023 Annual General Meeting of Shareholders also approved the private issuance of up to 620 million additional shares, equivalent to 111% of charter capital, with a total issuance value at par value of VND 6,200 billion, to increase charter capital from VND 5,601 billion to VND 11,800 billion.
The bank said the capital increase is necessary to improve financial capacity and operational safety indicators, improve the ability to prevent risks, and improve the quality of business operations.
The issuance of additional shares to increase capital is expected to be completed within 3 years, from 2023 to 2025. The offering periods are at least 6 months apart from the end date of the most recent offering period, with the offering price not lower than VND 10,000/share .
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