At its 2026 AGM on Wednesday, shareholders raised concerns about the bank’s stock trading at a price-to-book (P/B) ratio significantly below the industry average.

Chairman Trinh Van Tuan said he personally viewed OCB shares as undervalued, noting that the market average P/B stands at around 1.3-1.5 times, while OCB trades below 1.

He said the discount may reflect investor concerns over asset quality, but stressed that the bank’s financial reporting accurately reflects its position and that its asset quality remains strong.

As of end-2025, OCB’s book value stood at around VND13,000 ($0.49) per share, compared with a current market price of about VND11,600.

“I am a major shareholder and closely aligned with OCB’s performance. Over the past three years, the bank faced challenges, so expectations were modest. But we are entering a different cycle,” Tuan said, adding that management aims to restore ROE to above 15%, from levels above 20% prior to listing.

Expansion plans and asset quality focus

Tuan said that while OCB had been among the most efficient banks during its transition from a small to mid-sized lender, rapid growth and macroeconomic challenges since 2022 exposed structural weaknesses. From 2023, the bank undertook a comprehensive restructuring.

One key issue has been elevated non-performing loans (NPLs), primarily in retail lending rather than corporate lending. The chairman said retail NPLs peaked in 2024 due to declining household income following the pandemic, which affected repayment capacity.

While the bank had aimed to fully resolve the issue in 2025, delays in collateral disposal slowed progress. However, net NPLs have since declined, and recoveries from bad debt are expected to make a meaningful contribution to earnings this year.

OCB is also seeking to acquire a securities firm and a fund management company to expand its ecosystem and enhance customer services. Currently, the bank operates two subsidiaries: an international remittance company and an asset management and debt recovery company.

2026 targets and non-interest income growth

OCB has set a 2026 pre-tax profit target of VND6.96 trillion ($264.34 million), up 39% from 2025's actual figure. Deposit growth is projected at 14% and credit growth at 15%, in line with sector targets, while the NPL ratio is expected to remain below 3% per regulations.

CEO Pham Hong Hai said the plan builds on restructuring efforts implemented over the past year, including tighter credit growth, enhanced loan classification, increased provisioning, and a repositioning of the retail segment toward higher-income customers to mitigate risk.

The bank is also accelerating non-interest income growth. In 2025, total revenue rose 15%, while non-interest income surged 60%, driven by more than 100% growth in foreign exchange income and 30% growth in card services. In the first quarter of 2026, non-interest income increased by around 80%, highlighting a key growth area.

OCB is also expanding its corporate client base, aiming to cross-sell services to customers who currently borrow from the bank but use other institutions for additional services.

Capital increase to strengthen financial capacity

OCB plans to issue nearly 399.5 million shares, equivalent to 15% of outstanding shares, to existing shareholders in 2026 to raise charter capital.

At a par value of VND10,000 ($0.38) per share, the issuance is expected to raise nearly VND4 trillion ($151.73 million), increasing charter capital from VND26.63 trillion to VND30.63 trillion ($1.16 billion), subject to regulatory approval.

The proceeds will be used to support business and investment activities, lending, investment, technology upgrades, and product development, enhancing the bank’s competitiveness.

Japan’s Aozora Bank Ltd is expected to remain OCB’s largest shareholder with a 15% stake following the capital increase.

At the meeting, shareholders approved the appointment of Le Xuan Nghia, former head of banks development strategy at the State Bank of Vietnam, as an independent board member for the 2025-2030 term, bringing the total number of board members to eight, including two independent members.