In just over two months, NCB’s share price has risen more than 40 per cent.
HÀ NỘI — Being one of the nine banks that had to restructure in 2011, Navibank (current name NCB) is one of two banks that have chosen to restructure by themselves, along with Tienphongbank (now TPBank). Meanwhile, the remaining seven banks selected mergers, including SCB-TinNghiaBank - Ficombank; Habubank entered into SHB; WesternBank entered PVFC to become PVcomBank and GPBank was bought at zero Việt Nam đồng.
Since the selection of new investors including Nguyễn Tiến Dũng, currently the chairman of the board of directors, NCB has taken significant steps to shape a new bank with a stronger position in the banking and finance market.
First of all is the change in the bank’s image. The name Navibank has been replaced by the lively NCB image of the National Bank, only retaining the stock code NVB on HCM Stock Exchange (HoSE). The brand recognition from white and light blue has been transformed into dark blue as the background for the bank’s red and white logo.
In terms of operations, NCB has significantly outperformed the period since the start of restructuring in mid-2013. By the middle of this year, NCB has recorded total assets of more than VNĐ73.5 trillion (US$3.14 billion), mobilised capital of nearly VNĐ45 trillion and outstanding loans with customers of nearly VNĐ35 trillion. Compared to five years ago, total assets increased more than 3.5 times and capital mobilisation and credit was 2.6 times higher. The network of NCB has also grown from 19 branches to 24 branches and 66 transaction points covering the three regions. The workforce increased from 1,500 to over 2,400 people.
Notably, the bank’s business results have improved significantly. The bank’s total operating income has risen from less than VNĐ2.5 trillion in 2014 to over VNĐ4.6 trillion by the end of 2017; pre-tax profit increased from less than VNĐ10 billion to over VNĐ30.7 billion in the same duration.
In the market, despite being a small bank with low credit debt, NCB has a relatively high market share in auto loans - one of the areas which large and small banks are now boosting to get high profit but little risk.
For investors, the NVB image has been improved significantly. Investors are now more interested in this bank’s stock. In just over two months, NCB shares have risen more than 40 per cent, trading at around VNĐ9,300 per share - one of the two highest prices in the last one year. Trading volume in sessions was high, from one to two million shares per session. Remarkably, there have been many transactions in this stock since August, including two sessions of up to five million shares per session (sessions on August 15 and 30) - three times higher than the average trading volume.
With positive signals after five years of restructuring, NCB is expected to have a foundation to move up further in the coming time. By the end of 2018, NCB will increase total assets to over VNĐ94 trillion, customer loans to VNĐ40.6 trillion, customer deposits of VNĐ63 trillion and profit of around VNĐ35 billion. The chartered capital, after keeping stable at VNĐ3 trillion, will also rise to VNĐ5 trillion this year by issuing shares.
The bank’s profit is said to be modest, but according to the bank’s leaders, it is because the bank wants to deal faster with old issues in order to be ready for new breakthroughs at the next stage.