Orient Commercial Joint Stock Bank (OCB – Code: OCB) has just released documents of the 2020 Annual General Meeting of Shareholders, scheduled to be held on April 28 with many important contents about business strategy in the new period.
OCB expects 25% credit growth in 2021 based on the bank’s feasibility and approval of the bank
2020: Runner-up ROEA
At this meeting, the Board of Directors of the bank will submit the business plan for 2021 with pre-tax profit estimated at 5,500 billion VND, up 25% compared to 2020; dividend target is 20-25%.
Along with that, the bank expects credit growth of 25% (in the condition that the State Bank approves the proposed plan of the bank), bringing total outstanding loans to market 1 to 113,000 billion VND. Total assets are expected to reach VND 183,500 billion, up 20% from the previous year and capital mobilization in market 1 is VND 136,700 billion, up 26%.
The plan is based on the positive results that OCB has achieved in 2020 with total assets increasing by 29%, market credit balance 1 increased by 24%, market mobilization 1 increased by 27% and profit before tax increased by 37%, all exceeded the annual plan target.
By the end of 2020, OCB has risen to the no. 2 position in return on average equity (ROEA) and return on average total assets (ROAA), ranked in the Top 10 commercial banks with the highest pre-tax profit and Top 4 most effective banks in Vietnam voted by Forbes magazine.
Expected to pay 25% dividend by shares, increase charter capital to nearly 14,450 billion
In addition to the profit target, OCB also announced its plan to increase its charter capital from VND 10,959 billion to VND 14,449 billion, equivalent to an increase of 32%.
Capital increase plans are presented to the General Meeting of Shareholders this time including: dividends in shares at the rate of 25%, issuance of shares to employees under the employee selection program (ESOP) and individual issuance.
It can be seen that OCB is a bank with a high and regular dividend rate over the years, which is the basis of expectations for stock investors of the bank.
In addition, OCB will sell about 5 million shares under the ESOP program at the price of 10,000 VND / share to create a long-term motivation for staff. These shares are restricted to transfer for 4 years from the date of issuance, the annual release rate is 25%.
In addition, the bank plans to privately offer 70 million shares to investors both at home and abroad. In case foreign investors buy shares issued separately, the bank will loosen foreign ownership room to a maximum of 30%.
Previously, in 2020, the bank successfully increased its capital by more than 3,000 billion VND by private placement to foreign partner Aozora Bank from Japan and issued shares to pay dividend at the rate of 25%. Currently, Aozora Bank is a strategic shareholder holding 15% equity of the bank.
The Bank will also submit to the meeting for approval of a number of other issues such as remuneration for members of the Board of Directors and the Supervisory Board, amendment of the charter, selection of an auditing company and authorizing the Board to approve some issues in the operation of the Board of Directors. Bank’s activities are under the authority of the General Meeting of Shareholders.
Source: enternews.vn – Translated by fintel.vn