The current potential of the National Citizen Bank attests to the bank’s ability for safe and stable development, laying the bedrock for the lender’s robust growth in the forthcoming period.
Sound inner strength
By constantly improving financial strength in order to attain a place among medium-scale banks in Vietnam, the bank NCB proves that it is powerful enough to make breakthroughs in development in the years ahead, attested through the Hanoi-based lender’s upbeat performance in recent years.
Accordingly, by the end of 2020, NCB’s total asset value approximated VND90 trillion, showing a 11.5 percent jump compared to early 2020; its deposit volume rose 22.1 percent while full-year net profits from business activities surpassed VND850 billion ($36.9 million), more than double compared to the similar period in 2019. Notably, despite adverse impacts caused by COVID-19, NCB still counted net profits with improved Call Deposit (CASA) ratio.
In terms of net profit growth pace in 2020, NCB came second among local commercial lenders, with the figure soaring by 79 percent on-year.
The net profit is the main income source to banks’ development. Hence, this is the key metric to make assessments about banks’ operation efficiency and to measure whether a bank yields profit or not.
The CASA volume is another important financial index, as it is the low-cost capital source which helps banks to improve their net profit margins. Through pushing up its retail segment leveraging advanced technology platform to draw in a huge call deposit volume, NCB’s CASA ratio reached 9 percent last year, up 8 percent compared to the previous year, in which the call deposit volume to end of 2020 touched VND6.163 trillion ($267.9 million), a 30 percent jump on-year out of a total deposit volume amounting to VND72.085 trillion ($3.13 billion), up 22 percent.
Despite making efforts for diversification of products and services, NCB was doing a smart job with putting bad debts (NPLs) under control. Along with this, by the end of 2020, the bank’s NPL ratio just stood at 1.51 percent.
In the first and second quarter this year, NCB envisages to put on sale 150 million shares to its existing shareholders at the face value of VND10,000 ($0.43) apiece to collect VND1.5 trillion ($65.2 million) in proceeds. Simultaneously, it plans to issue 3,000 convertible bonds with the face value of VND1 billion apiece under private placements.
This is deemed viable measures helping the bank to strengthen its financial strength and business efficiency for sustainable development in the forthcoming period (2021-2025).
NCB’s recent rosy performance indicates that the bank deserves the trust of its shareholders who are willing not to receive dividend payment to use the profit for restructuring purpose. Their ‘sacrifice’ has not come in vain.
NCB: Your bank
“We want the NCB brand and its message ‘Your Bank’ will become increasingly familiar to every customer, simultaneously making the mark as a bank having the capacity to make breakthroughs in development,” said an NCB executive.
In fact, with a vision to become a leading retail bank in Vietnam, NCB has been focusing on spurring its digitalisation strategy, building an inclusive digital ecosystem and a loyal customer base, helping to significantly improve the lender’s brand coverage.
Currently, 95 percent of transactions are conducted online on platforms like NCB izi Mobile, Internet Banking, among others. Physical transactions only account for 5 percent. All transactions at NCB 24/7 digital banks ensure absolute safety, privacy, speediness and precision.
Aside with digitalising banking processes, NCB has scaled up co-operation with up-and-coming fintech firms, e-commerce partners, and service providers like FPT, FLC, Novaland and PVI Holdings to shape up a comprehensive ecosystem, helping to connect business partners effectively.
Notably, the “ace” in developing an in-depth digital ecosystem at NCB in the upcoming time is its success in eKYC application. Accordingly, NCB’s IT platform allows customers’ authentication via the digital platform like using smartphones or laptops with direct video call function.
Last year, NCB made its name onto the list of Vietnam’s top 50 best businesses (FAST50), a tally that champions businesses who secured best growth pace with sustainable development in the past years. The ranking of companies on the tally was based on the compound annual growth ratio (CAGR) metrics in revenue and business efficiency.
NCB’s presence on the FAST50 list was partly attributed to the strength coming from the bank’s digitalisation strategy and efforts to constantly strengthen its financial capacity and business efficiency by availing itself of existing assets.
According to NCB’s leadership, through stock and bond issuances to replenish capital sources, the bank is possessing good opportunities to facilitate the implementation of 2021-2025 development plans, striving to materialise its set goals to serve the growing customer base.