OCB stock trades at very low levels as pre-listing ROE of 20-25% has not returned, says Trịnh Văn Tuấn

At the annual general meeting on the morning of 15 April, some shareholders of Orient Bank (OCB) questioned the leadership over why the stock has remained at very low levels despite solid core operations, and urged the bank to propose solutions.

OCB is currently trading around 11,650 dong, slightly below the start of the year and about 20% below its peak. In the banking sector, the stock is positioned in the lower tier.

Shareholders link the stock weakness to ROE

OCB chairman Trịnh Văn Tuấn said the share price is trading at a very low level because return on equity (ROE) has not returned to the 20–25% range seen before the bank’s listing.

He noted that ROE before listing in 2021 ranged 20–25%, but has recently been lower. Tuấn said the bank is “very transparent in recording and accounting,” adding that the figures therefore reflect the underlying business performance and are the direct factor affecting the stock price.

The chairman said the next target is to achieve ROE above 15% after the bank resolves existing shortcomings. “I believe the stock price will rise and be properly valued by investors,” Tuấn told shareholders.

Analyst view and near-term valuation

In a mid-February report, analysts from BSC Securities maintained a “hold” stance on OCB and set a forecast price for this year of 13,500 dong, about 16% above the current level.

Capital plan and shareholder expectations

OCB plans to issue nearly 400 million new shares to increase capital. If successful, the bank’s charter capital would rise from about 26.63 trillion dong to over 30.6 trillion dong. Aozora Bank Ltd, the largest single shareholder with 15% of OCB, is expected to maintain its stake.

Yoshizawa Toshik, representative of Aozora Bank Ltd, said that five-year results since the group invested have not shown outsized growth. However, he said the group has observed restructuring efforts, including handling bad debts and shifting the business model from reliance on interest income toward increasing revenue from service fees and advisory fees.

Bank targets for profit, assets, deposits and loans

OCB aims for pretax profit of 6.96 trillion dong this year, up about 40% from last year. The bank expects total assets to rise by 10% to over 354 trillion dong by year-end, while total deposits and loans are projected to rise 15%.

Management strategy to support performance

OCB CEO Pham Hong Hai said deposits remain a key driver of performance. In addition to lending in traditional sectors, the bank is expanding lending to agriculture, services, and technology.

Hai also said OCB plans to push high-yield, higher-risk lending products and restructure profitable assets to improve net profit margins. With a prudent credit ceiling this year, the bank is unlikely to meet all customer credit demand. As alternatives, OCB plans to provide financial advisory services, bond issuance, and cash-flow management to meet demand while increasing fee income.