HCMC – Orient Commercial Joint Stock Bank (HOSE: OCB) will increase its charter capital to more than VND26.63 trillion through a share issue this year.
According to a recent resolution by the bank’s board of directors, OCB will issue nearly 197.3 million shares at a ratio of 8%, meaning shareholders will get eight new shares for every 100 held. The shares will be issued at a par value of VND10,000 each, bringing the total issuance value to nearly VND1,973 billion.
The capital source for this issuance will be drawn from the bank’s equity as of December 31, 2024, based on audited separate and consolidated financial statements, after appropriations for regulatory reserves.
Once completed, OCB’s charter capital will rise from around VND24.66 trillion to over VND26.63 trillion. As of March 31, 2025, the bank’s charter capital ranked 15th in the Vietnamese banking sector.
In 2024, OCB had increased its charter capital from nearly VND20.55 trillion to around VND24.66 trillion by issuing shares to pay dividends. However, the bank postponed its employee stock ownership plan (ESOP) and private placements due to unfavorable market conditions.
The additional capital will be used for business activities, loans, and investments totaling VND1.26 trillion. Another VND714 billion will go to infrastructure upgrades, including IT systems, fixed assets, and construction.
In the first quarter of this year, OCB reported pre-tax profit of VND893 billion. Its total assets rose 3% year-to-date to VND289.07 trillion.
Lending to customers increased 2.5% to VND175.14 trillion, while loan loss provisions declined 6% to VND2.4 trillion. However, the lender’s non-performing loans surged 26.7% to VND6.85 trillion, pushing the bad debt ratio up from 3.17% to 3.91%.
Closing the trading session today, May 22, OCB edged down 0.92% to VND10,750, with a trading volume of nearly 2.3 million shares.
The benchmark index dropped 0.7% on Thursday due to declines of bluechip stocks. The VN-Index lost 9.21 points to close at 1,313.84, with 105 winners and 217 losers.
Trading volume and value on the Hochiminh Stock Exchange rose nearly 9% and 5%, respectively, with over 1.15 billion shares worth VND26.4 trillion changing hands. Block deals accounted for 71.3 million shares valued at VND1.79 trillion.
The VN30 basket, which groups 30 largest-cap stocks, saw only four advancers and 24 decliners. The VN30-Index slid 9.8 points to 1,409.56 points.
Property developer VHM retreated to a 1.19% gain at VND68,100 at the close after rising as much as 5.5% during the morning session. Its related stock, VIC, reversed course, falling 1.1% to VND92,500. VPL extended its decline, dropping more than 6% to VND92,000, becoming the biggest drag on the index.
Other VN30 stocks saw limited losses. LPB and BCM fell around 2%. HDB, BVH, MBB, and GVR lost between 1.5% and 1.7%.
Outside of the basket, profit-taking weighed on stocks such as KSB, GEG, GMD, and VTP, which lost 3-5% on high volume.
On the other hand, ticker HNV of national carrier Vietnam Airlines rose 6.04% to VND38,650, providing strong support to the market. Several small-cap stocks, including PET, VNE, TEG, SQC, EVF, and SMC, closed at their upper limits.
VIX rose 1.1% to VND13,550 with the highest trading volume on the southern market at over 105.8 million shares.
On the Hanoi Stock Exchange, the HNX-Index dropped 0.67 point, or 0.31%, to 216.79 points. There were 63 stocks gaining and 112 others dipping on the northern bourse, with trading volume exceeding 92.3 million shares worth VND1.47 trillion.
