NCB Continually Increases Charter Capital, Laying a Foundation for Sustainable Development

NCB Continually Increases Charter Capital, Laying a Foundation for Sustainable Development

By nearly tripling its charter capital within just three years, National Citizen Commercial Joint Stock Bank (NCB) has demonstrated a strong commitment to enhancing its financial capacity, ensuring safe and efficient operations, and promoting sustainable development. It is known that in 2025, NCB will continue to increase its charter capital to over VND 19,200 billion as per the plan approved by the Annual General Meeting of Shareholders (AGM).

Why Are Banks Rushing to Increase Capital?

Charter capital is one of the critical criteria determining the level of operational safety for banks, as well as their ability to achieve sustainable growth in the future. According to statistics from 2024, there were 11 banks that increased their charter capital. By the end of 2024, the total charter capital of 28 banks had grown by 15% compared to the beginning of the year, reaching over VND 822,000 billion.

Entering early 2025, a number of banks have continued to set plans to further increase their charter capital through various methods. Among the Big4 banks, Vietcombank plans to issue additional shares, raising its charter capital from VND 55,890.9 billion to nearly VND 83,557 billion. Similarly, VietinBank is proposing to the AGM a plan to issue additional shares to pay dividends and increase charter capital, with a projected rate of 44.64%. Meanwhile, Agribank is requesting the Government to supplement VND 15,000-17,000 billion annually to its equity capital. Many other commercial banks such as VIB, Nam A Bank, PGBank, ACB, and NCB, etc., have also simultaneously presented shareholders with plans to increase charter capital ahead of this year's AGM.

Experts note that the race to increase capital among commercial banks has become vibrant from the very beginning of 2025. The primary driver stems from the goal of boosting credit growth to 16% for the year, supporting the flow of capital into the economy as the Government aims for 8% GDP growth in 2025 and targets double-digit economic growth in the 2026-2030 period. In this context, credit capital plays an extremely crucial role. The capital increases by banks are also aimed at ensuring the capital adequacy ratio (CAR) as stipulated by regulatory authorities, meeting international standards, and ensuring the sustainable development of banks in the future.

Increasing Capital for Safe and Sustainable Development

In line with the industry-wide trend, the 2025 AGM of NCB recently approved a proposal to continue raising the charter capital from nearly VND 11,800 billion to over VND 19,200 billion. The capital increase will be implemented through a private placement of 750 million shares, with an offering price not lower than VND 10,000 per share. The issuance is expected to take place between Q2 and Q4 of 2025, pending approval from relevant regulatory authorities.

The entire proceeds, approximately VND 7,500 billion, will be utilized to supplement capital for credit activities, including lending to corporate and individual customers for production, business, and consumption purposes. This not only contributes to promoting credit growth within the banking system, providing capital for the economy to meet the objectives set by the Government, but also enhances NCB's financial capacity to support its dual goals: accelerating the restructuring process and driving a comprehensive transformation under its new "Digital Wealth" strategy — a combination of wealth management and hybrid digital services.

If successfully executed, this will mark the third consecutive capital increase within four years (2022 – 2025) for NCB. Previously, on September 14, 2022, NCB officially increased its capital from over VND 4,100 billion to over VND 5,600 billion. On November 26, 2024, NCB completed the private placement of 617.8 million shares, at an offering price of VND 10,000 per share, raising its charter capital to VND 11,780 billion, significantly bolstering the bank's resources for breakthroughs in digital transformation and business operations.

According to NCB's leadership, beyond driving business growth, the capital increase reflects NCB's determination to enhance operational safety and sustainable development capabilities, meeting new development goals in the upcoming period.

The increase in charter capital not only helps the bank expand its operational scale, enhance financial capacity, boost competitiveness, and improve resilience to market risks, but it also plays a pivotal role in enabling NCB to successfully implement its Restructuring Plan for the 2023 – 2025 period, with a vision towards 2030, approved by competent authorities. As part of its roadmap, NCB will continue to raise its capital, aiming for a charter capital of over VND 29,000 billion by 2028 to strengthen its financial foundation and increase medium- to long-term funding sources, thereby expanding business activities and positioning NCB as one of the reputable, healthy, and efficient banks, providing the best financial services and solutions in the market, a representative from NCB shared.

In addition to completing a nearly VND 6,200 billion increase in charter capital, 2024 also marked significant milestones for NCB as it became the first credit institution to complete and receive approval for its restructuring plan under the "Scheme on Restructuring the System of Credit Institutions in tandem with Handling Bad Debts for the 2021-2025 period" as per Decision 689/QD-TTg by the Prime Minister and guidelines from the State Bank of Vietnam (SBV). With a clear roadmap, comprehensive solutions, and a strong determination across the system, under the guidance and supervision of the SBV and relevant authorities, NCB is making solid progress in its comprehensive restructuring efforts. NCB also became the first bank to enable the opening of payment accounts directly through the VNeID application, contributing to the National Digital Transformation process and delivering a superior, convenient, and secure banking experience to the community.

By the end of 2024, NCB had achieved and surpassed key performance targets set by the AGM. Specifically: total assets reached VND 118,559 billion, equivalent to 112% of the plan; total outstanding loans reached VND 71,175 billion, equal to 111% of the plan; capital mobilized from residents reached VND 100,489 billion, equivalent to 117% of the plan. As of the end of 2024, NCB's customer base reached 1.346 million, achieving 117% of the annual plan and marking a 34.6% increase compared to the end of 2023.