MB Bank targets $1 bln profit in 2023

State-controlled Military Bank (MB Bank) is expecting a pre-tax profit of VND26.1 trillion ($1.11 billion), up 15% year-on-year.

MB Bank plans to raise its charter capital by 20% to VND54.36 trillion ($2.32 billion), and total assets by 14% to VND830 trillion ($35.37 billion).

The bank has set a credit growth target of 15%, equivalent to VND583.6 trillion ($24.87 billion), according to the credit growth limit set by the State Bank of Vietnam.

The bad debt ratio in 2023 is expected to remain below or equal to 2%.

MB Bank said that in 2023, a local commercial bank would merge into it as a "compulsory transfer", under a plan approved at its general meeting of shareholders.

The bank reported a pre-tax profit of VND22.73 trillion ($969 million) in 2022, up 37.5% over the previous year and reaching 111.8% of its target.

Its net interest income was VND36.02 trillion ($1.54 billion), up 38% year-on-year, according to the bank's Q4 consolidated financial report.

As of December 31, 2022, the bank's total assets stood at VND728.62 trillion ($31.07 billion), up 20% compared to the end of 2021, mainly due to credit growth of 26.7% to VND460.75 trillion ($19.64 billion).

MB's bad debt ratio at the end of 2022 was 1%. However, group 5 bad debts (debts likely unable to be reclaimed) increased sharply by 180%, accounting for about 50% of the bank's total bad debt.

MB is currently the leading bank in terms of current account savings account (CASA) capital ratio, accounting for about 40% of total capital mobilization. This is an advantage for banks that apply technology early and focus on mobilizing individual customer capital through online platforms.

On the Ho Chi Minh City Stock Exchange, the MBB share price stood at VND18,800 ($0.8) at Wednesday's close.

Military-run Viettel Group and State Capital Investment Corporation are the two biggest shareholders of MB Bank, holding a 14.01% stake and 9.34% stake, respectively.

Other major shareholders are Vietnam Helicopter Corporation (7.39%), Saigon Newport One Member Corporation (7.14%), and Vietcombank (4.42%).