Military Bank posts $969 mln profit in 2022

Military Bank (MB Bank) reported a pre-tax profit of VND22,729 billion ($969 million) in 2022, up 37.5% over the previous year and reaching 111.8% of its target.

Its net interest income was VND36,023 billion ($1.54 billion), up 38% year-on-year, according to the bank's Q4 consolidated financial report.

In the context of the banking system in 2022, MB Bank's securities and service activities in the fourth quarter of 2022 recorded a decrease in growth. Net interest income was still the main contributor to the bank's business results with VND9,629 billion ($410.63 million), up 34%.

Due to a 78% increase in risk provision in Q4, the bank's pre-tax profit was only VND4,527 billion ($193.05 million), down 2.3% year-on-year.

As of December 31, 2022, the bank's total assets stood at VND728,623 billion ($31.07 billion), up 20% compared to the end of 2021, mainly due to credit growth of 26.7% to VND460,754 billion ($19.64 billion).

MB's bad debt ratio at the end of 2022 was 1%. However, group 5 bad debts (debts likely unable to reclaim) increased sharply by 180%, accounting for about 50% of the total bad debt at the bank. The bank's bad debt coverage ratio is currently at 238%, only lower than Vietcombank.

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 (HoSE), the MBB share price stood at VND18,900 ($0.8) at Wednesday's close.

Military-run Viettel Group and State Capital Investment Corporation (SCIC) are the two biggest shareholders of MB Bank, holding a 14.14% stake and 9.42% stake, respectively. The state ownership at the bank is 32.42%.