Strong points of NCB in the eyes of investors

October 16, 2019 | 07:00
(0) user say
A bank having an average asset scale, charter capital, and operational network, National Citizen Bank (NCB) is appearing on investors’ radar by virtue of its safe and effective operation, and buoyant potential for retail bank development.  

Deeper engagement of foreign investors into Vietnamese banks

Vietnam is getting closer to the international community in recent years through a slew of events, such as gaining admission to the ASEAN Economic Community (AEC) and the signing of new-generation free trade agreements (CPTPP, EVFTA, for example).

The country is also revising many important laws, like the Law on Investment, Law on Enterprises, Law on Securities Business, and several other specialised laws.

Notably, the Politburo has recently enacted the first-ever resolution on new-generation FDI attraction, continuing efforts to institute a favourable, transparent, and pro-business investment environment. These factors aim to help the country attract foreign investment across the board.

In the field of banking, growing capital injections from foreign investors have been helping banks to expand capital sources, develop new disruptive technologies, and improve management expertise and the quality of human resources, enabling banks to take the initiative during the integration process with enhanced competitiveness on the regional and global markets.

strong points of ncb in the eyes of investors
Foreign capital contributions help banks enrich capital sources

Strong performance all around

Besides several large-scale state commercial banks, foreign investors are also keen on medium-sized banks as apart from competitive ticker price and prospects of high profitability, these banks are more flexible when it comes to retail banking development – a niche market which has recently been flagged for its tremendous potential in fast-developing countries like Vietnam.

With total asset value touching VND72.431 trillion ($3.15 billion) and charter capital amounting to VND4 trillion ($173.9 million) that will be raised to VND7 trillion ($304.35 million) by the end of this year and VND10 trillion ($434.78 million) by the end of the next one, NCB has made tremendous efforts for successful restructuring and was praised for its safe and effective operations by the State Bank of Vietnam.

In recent years, NCB has welcomed several groups of foreign investors at its headquarters, who were arriving in search for co-operation opportunities. The investors have appreciated NCB’s future development prospects based on its potential and advantages that align with modern development requirements.

Having a clear and innovative retail bank growth strategy

Between 2013 and 2018, NCB has reportedly outperformed most local peers in deposit growth. During the period, the bank’s outstanding loan balance doubled in volume as well as scale.

The bank’s credit reached diverse economic sectors like real estate, construction, pharmaceuticals, medical equipment, logistics, and car manufacturing. This is one of NCB’s eminent advantages in the financial market and explains why the bank has reported high average growth (16.8 per cent per annum) in the number of customers. Retail banking is expected to account for about 50-55 per cent of NCB’s total outstanding loan balance in the forthcoming years.

NCB has made tremendous efforts for successful restructuring and was praised for its safe and effective operations by the State Bank of Vietnam.

Simultaneously, NCB is set to grow into a smart financial adviser, committed to provide the customers with swift and user-friendly financial services that are tailor-made to each customer. Currently, the bank has procured strong advantages in financial information analysis, consultancy, and provision to individual and corporate customers.

NCB’s retail development strategy has been complimented by an evenly-distributed operational network spreading across the country which consists of 24 branches and more than 90 transaction points (more than 30 units serving corporate customers).

Besides that, NCB boasts of having strong personnel of more than 2,000 qualified staff who are ready for the bank’s digital transformation journey, equipped with deep insights into their individual and corporate customers.

strong points of ncb in the eyes of investors
NCB’s sales team has deep insights of the needs and demands of their individual and corporate customers

Having a well-conceived digital banking strategy

Infrastructure and technology solutions enjoy special attention at NCB. Along with that, the bank has made constant efforts to personalise and elevate user experience by designing digital bank products and developing compelling applications to serve target customer groups.

The bank’s products and services are deployed on a digital banking platform striving for customer satisfaction, including opening bank accounts and online saving books, automatic bill payments, around-the-clock money transfer, and QR code payment, among others.

Having an effective and sustainable development strategy

NCB has focused on crafting a risk management system aligned with the central bank’s (SBV) regulations, striving to match Basel II’s international standards.

In addition, as a member listed on the Hanoi Stock Exchange (HNX), NCB was praised by foreign investors for its transparent information disclosure practices.

One of the breakthrough targets set in NCB’s development strategy is fostering capital sources and financial capacity by raising charter capital and successful co-operation with strategic foreign investors, which the bank believes is the key to garner the necessary financial capacity to take it to the next level in terms of operational scale.

Leveraging these advantages, NCB is garnering growing attention from Asian investors who are eager to cash in on Vietnam’s lucrative market of nearly 100 million.

NCB is now on the radar of foreign investors, posing a worthwhile opportunity for the bank to make good on its promise to customers and become truly “Your bank of choice”.

By Ngoc Lan

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional