At the annual general meeting on the morning of 15/4, some shareholders questioned the leadership of Orient Commercial Joint Stock Bank (OCB) about the persistently low stock price despite strong core operations, urging solutions. OCB stock currently trades around 11,650 VND, a slight decrease since the beginning of the year and approximately 20% below its peak. Within the banking sector, OCB's market price is in the lower tier.

According to Mr. Tuan, the return on equity (ROE) fluctuated between 20% and 25% before the bank's listing in 2021, but it has been lower recently. He affirmed the bank maintains transparency in its accounting and record-keeping, ensuring these figures accurately reflect business operations. This lower ROE is considered the direct cause affecting the stock price.

OCB's chairman stated the upcoming goal is to achieve an ROE above 15% once the bank addresses current challenges. "I believe the stock price will increase and be properly valued by investors," Mr. Tuan told shareholders.

Trinh Van Tuan at the annual meeting on the morning of 15/4. *Photo: OCB*

In a report published mid-February, analysts at BSC Securities recommended "hold" for OCB shares, projecting a price of 13,500 VND this year, approximately 16% higher than its current level.

OCB plans to issue nearly 400 million shares to increase its equity capital. If successful, the bank's charter capital will rise from approximately 26,630 billion VND to over 30,600 billion VND. Aozora Bank Ltd, the sole major shareholder holding 15% of OCB's capital, intends to maintain its current ownership percentage.

Yoshizawa Toshik, a representative of Aozora Bank Ltd, observed that OCB's business results over the past five years (since their investment) have not shown exceptional growth. However, he acknowledged the bank's restructuring efforts, including addressing bad debts and shifting its business model from reliance on interest income to increasing revenue from various service and consulting fees.

OCB aims for a pre-tax profit of 6,960 billion VND this year, an increase of approximately 40% compared to last year. The bank expects total assets to grow by 10% to over 354,000 billion VND by year-end, with total deposits and outstanding loans projected to increase by 15%.

According to Pham Hong Hai, OCB's chief executive officer, credit mobilization continues to be a significant contributor to business results. In addition to traditional lending sectors, the bank is expanding loans to agriculture, services, and technology. Furthermore, the bank plans to promote lending for high-yield products with associated risks and restructure income-generating assets to improve its net profit margin.

Mr. Hai added that with a cautious credit ceiling this year, OCB may not be able to meet all customer credit demands. Therefore, the bank will offer alternative solutions such as: financial consulting services, bond issuance, and cash flow management to both address customer needs and increase service fee revenue.

Phuong Dong