OCB Targets 39% Profit Growth in 2026, Citing Credit Expansion and Fee Services

Overview

Oriental Commercial Joint Stock Bank (OCB) set a 2026 net profit target of VND 6,960 billion, representing 39% year-on-year growth, during its Annual General Meeting of Shareholders on April 15 in Hồ Chí Minh City. CEO Phạm Hồng Hải detailed the growth drivers, including credit expansion into new sectors, fee-based services, and cost optimization, while addressing shareholder concerns over asset quality.

Key Facts

• OCB’s 2026 net profit target is VND 6,960 billion, a 39% increase from the previous year.
• The bank plans to expand lending into new sectors like agriculture, services, and technology, alongside traditional strengths.
• SME and FDI lending, which grew in 2025, will be further accelerated in 2026.
• Fee-based service income will be emphasized, including financial advisory, bond issuance consulting, and cash flow management services.
• The bank aims to optimize operational costs through increased technology application.
• Debt recovery and handling volume nearly doubled year-on-year in 2025, with expectations for continued strength in 2026.
• The Annual General Meeting was held on April 15, 2026, in Hồ Chí Minh City.

What Happened

At its 2026 Annual General Meeting of Shareholders, OCB’s leadership, including CEO Phạm Hồng Hải and Chairman of the Board Trịnh Văn Tuấn, presented and defended the bank’s ambitious profit growth plan. Shareholders questioned the basis for the 39% target, citing concerns over rising oil prices and Middle East tensions potentially increasing operational costs and non-performing loans (NPLs). In response, CEO Hải outlined four key pillars: credit expansion into high-growth sectors like agriculture and services; boosting fee-based income through advisory services; cost optimization via technology; and stringent asset quality control, including enhanced debt recovery measures.

Chairman Trịnh Văn Tuấn provided historical context, noting that OCB grew from a small to a mid-sized bank after the 2011-2013 crisis but faced a slowdown from 2022-2024 due to shifting monetary policies. He stated that management has since addressed these issues, with business fundamentals now largely restored. The bank emphasized that prudent credit limits in 2026 may lead it to offer alternative financial solutions to clients, shifting focus toward fee-generating services rather than pure lending.

Market Context

OCB trades on the Hồ Chí Minh Stock Exchange (HOSE) under the ticker OCB. The stock closed at VND 12 on April 10, 2026, up 1.75% on volume of 2.34 million shares. This positive price movement precedes the shareholder meeting, potentially reflecting market anticipation of the bank’s growth guidance. The Vietnamese banking sector has been navigating monetary policy adjustments and global economic uncertainties, making OCB’s detailed growth plan and asset quality assurances particularly relevant for investors.

Strategic Significance

The 39% profit growth target signals OCB’s strategic pivot from a period of stagnation to aggressive expansion, leveraging its mid-sized bank status. By diversifying into agriculture, services, and technology lending—sectors with perceived growth potential—and emphasizing high-yield, acceptable-risk products, OCB aims to improve net interest margin (NIM) and scale. The focus on fee-based services and wealth management for affluent clients (MF, AF segments) reduces reliance on traditional credit income, aligning with broader industry trends toward sustainable revenue streams.

What to Watch

• OCB’s quarterly earnings reports, starting with Q1 2026, to track progress toward the VND 6,960 billion profit target.
• Credit growth and NIM figures in upcoming financial disclosures, indicating the success of lending expansion into new sectors.
• Non-performing loan (NPL) ratio trends, especially in light of global economic pressures cited by shareholders.
• Updates on debt recovery volumes and cost optimization initiatives through technology adoption.
• Regulatory developments regarding credit limits and their impact on OCB’s fee-service strategy.