HÀ NỘI — The State Bank of Vietnam (SBV) has issued document No. 9256/NHNN TTGSNH approving the National Citizen Commercial Joint Stock Bank (NCB) to increase its charter capital.
The SBV approved the increase of NCB’s chartered capital from VNĐ3 trillion to more than VNĐ5 trillion (US$128.2 million to $213.68 million) through the issuance of shares to NCB’s staff and existing shareholders under the capital increase plan approved by the General Assembly of Shareholders in Resolution No. 25/NQ.ĐHĐCĐ 2018 dated April 26, 2018, and approved by the NCB’s Board of Directors in Resolution No. 60/2018/NQ dated October 8, 2018.
For stocks and shares which were not sold, the SBV will comment after NCB submits a specific plan specifying the target customers and number of shares, expected share ownership of this target object and related people at NCB after buying shares.
NCB has a responsibility to increase charter capital in accordance with the law, including compliance with share limits for stakeholders and affiliated persons in accordance with the Law on Credit Institutions together with relevant guidance documents of the SBV.
Investors will obey obligations and responsibilities of shareholders strictly according to the provisions of the Law on Credit Institutions. In particular, the shareholders should be responsible for the legality of capital contribution, purchase and transfer of shares at credit institutions.
Using capital sources granted by credit institutions or foreign bank branches for purchase or transfer shares of credit institutions is not permitted, nor is to contributing capital or purchasing shares of credit institutions under the name of an individual or other legal entity in any form, except for cases of entrustment in accordance with the provisions of the law.
After finalising procedures for raising capital, NCB is responsible for submitting a request for amendment of charter capital in the licence to the SBV.
This document is valid for 12 months from the date of signing. If the charter capital increase has not been completed within the allotted time or if the NCB’s General Meeting of Shareholders approves the change of charter capital increase plan approved by the State Bank, this document shall be invalidated.
According to financial expert Nguyễn Trí Hiếu, the increase of capital is a positive sign for NCB. SBV’s approval of the capital increase can be considered a "clean bill of health" awarded to NCB.
"Approving a capital increase plan means that the SBV has looked at the possibility of raising capital and how NCB will use this capital. In principle, the increase of capital to create conditions for NCB to expand its business activities and the bank when raising capital must have adequate conditions for development from operation to human resources, risk management and the network grid,” Hiếu said.
Recently, NCB also announced its consolidated financial statements for the third quarter of 2018 with an increase in pre-tax profit of 80 per cent over the same period last year. After-tax profit also increased by nearly 90 per cent to reach nearly VNĐ1.273 trillion.
During the reviewed period, activities in general saw income growth because service activities received a sudden increase, almost double the same period last year. Proceeds from debt repayments offsetting the source of risk also increased significantly. Loans increased nearly VNĐ2.6 trillion compared with the beginning of the year, and mobilising increased nearly VNĐ7.8 trillion compared with the beginning of the year.
On the stock market, NCB’s shares, NVB, increased strongly, staying in the list of the top 20 HNX listings.
NVB is now one of the most attractive shares for investors in the market. The liquidity of the stock increased in both price and volume.
Trading volume was high, with an amount of 1-2 million shares per session. Many put-through transactions in this stock have taken place since August, including two sessions of up to five million shares per session (August 15 and 30) – three times higher than average trading volume.