Viet Dragon Securities - OCB – Non-interest income expansion supports profit growth

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Viet Dragon Securities

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OCB – Non-interest income expansion supports profit growth

• OCB’s Q2/2025 business results recorded positive growth, with key highlights including (1) Non-interest income expansion driven by fee income growth (notably, banca activities posted a solid recovery while corporate advisory activities grew strongly) and stronger off-balance-sheet bad debt recoveries, (2) Asset quality improvement as net formation of NPLs declined significantly and NPL coverage ratio was strengthened. However, credit activities showed no clear improvement as credit growth in 1H2025 was below the sector average (9.9% YTD) and NIM continued to narrow.
• For full-year 2025, we believe that OCB is unlikely to achieve its PBT target set earlier this year (over VND 5.3 trillion, equivalent to +33% YoY). However, PBT is still projected to post a positive growth of 14% YoY, supported by (1) 20% credit growth and (2) a strong 38% YoY expansion in non-interest income, mainly driven by fee income and bad debt recoveries.
• We are reassessing our valuation for OCB’s stock and will provide an update in the upcoming report.

21/08/2025 7 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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OCB – Non-interest income expansion supports profit growth

SURPASSING THE RESISTANCE AREA

EFFORT TO GAIN

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