Military Bank profit grows 10% in Q1 on provision reduction

By Tri Duc, Bach Quang
Sat, April 29, 2023 | 11:45 am GMT+7

The Military Commercial Bank (MBBank) recorded a post-tax profit of VND5.21 trillion ($221.8 million) in the first quarter of 2023, up 10.14% year-on-year, as risk provisions dropped on the decline of most business segments.

MBBank's post-tax profit grew 10% in Q1/2023. Photo courtesy of VTC newspaper.

MBBank's post-tax profit grew 10% in Q1/2023. Photo courtesy of VTC newspaper.

The lender posted a net operating income of VND11.93 trillion ($508.4 million), up 2.5% year-on-year. The result was driven by a 22% growth in net interest income to VND10.23 trillion ($435.8 million).

MBBank, listed on the Ho Chi Minh Stock Exchange (HoSE) as MBB, made a provision for credit losses of VND1.85 trillion ($78.84 million) in Q1, down 13%.

Most of MBBank's other business segments saw a decline, especially services and securities investment.

MBB’s non-performing loans (NPL) skyrocketed 68% from the beginning of this year to VND8.45 trillion ($360.2 million) by end-March, resulting in an NPL ratio of 1.75%, higher than the 1.09% recorded at the end of 2022.

By March 31, the bank’s total assets had inched up 4.4% year-on-year to VND760.76 trillion ($32.42 billion); while its total liabilities were up 4.2% at VND675.99 trillion ($28.81 billion) and equity climbed 6.5% to VND84.77 trillion ($3.61 billion).

The lender’s loans to customers reached VND481.39 trillion ($20.52 billion) by end-March, up 4.5% year-on-year, while its corporate bonds were valued at VND42.34 trillion ($1.8 billion), down 3%.

This year, MBB is targeting a consolidated pre-tax profit of VND26.1 trillion ($1.11 billion), up 15% year-on-year, and seeking to maintain its NPL ratio below 2%. It is also looking to improve its total assets by 14% to VND830 trillion ($35.37 billion), with outstanding loans totaling VND583.6 trillion ($24.87 billion), up 15%.

At the bank’s annual general meeting earlier this week, MBBank executives reassured shareholders that the lender is cooperating with businesses to collect outstanding debts.

Acting deputy CEO Pham Nhu Anh said the loans with renewable energy giant Trung Nam are being repaid and no more NPLs are expected in the coming time.

Regarding Novaland, a key realty partner, MBBank remains one of the four biggest creditors of the real estate giant, while the bank's Novaland corporate bond balance has fallen rapidly since the beginning of the year.

MBBank's total loans and investments in corporate bonds with Novaland stood at less than VND10 trillion ($426 million), said the bank's newly-appointed chairman Luu Trung Thai.

MBB shares closed up 0.27% at VND18,450 ($0.79) on Friday.

Comments (0)
  • Read More
Vietnam needs two-pronged policy approach to mitigate impact of rising oil prices: RMIT experts

Vietnam needs two-pronged policy approach to mitigate impact of rising oil prices: RMIT experts

A surge in global oil prices poses a significant threat to Vietnam’s economy and to cushion these impacts, the country needs a two-pronged policy approach, write Dr Vu Hong Nhung and Dr Phan Thanh Chung, lecturers at the economics and finance department, Business School, RMIT University Vietnam.

Consulting - Sat, July 5, 2025 | 8:54 am GMT+7

Vietnam's registered FDI tops $21 bln in H1, highest in 16 years

Vietnam's registered FDI tops $21 bln in H1, highest in 16 years

Registered foreign direct investment (FDI) in Vietnam hit over $21.51 billion in the first half of the year, up 32.6% and a record high since 2009, while disbursed capital reached $11.72 billion, up 8.1%.

Economy - Fri, July 4, 2025 | 8:50 pm GMT+7

Gemadept’s southern Vietnam port receives mega container ships

Gemadept’s southern Vietnam port receives mega container ships

Within just over two years of trial operations (from March 2023 to May 2025), Gemalink Port of Vietnamese logistics giant Gemadept in Ba Ria-Vung Tau has safely received 70 container vessels of over 200,000 DWT (up to 232,494.5 DWT) under partially loaded conditions.

Companies - Fri, July 4, 2025 | 4:54 pm GMT+7

Agro-forestry-fisheries exports near $34 bln in H1

Agro-forestry-fisheries exports near $34 bln in H1

Vietnam’s agro-forestry-fisheries exports hit $33.84 billion in the first half of 2025, marking a 15.5% increase year-on-year.

Economy - Fri, July 4, 2025 | 3:36 pm GMT+7

Malaysia’s data center operators struggle due to power cost hike

Malaysia’s data center operators struggle due to power cost hike

Malaysia’s data center sector is projected to grow at a 22% CAGR from 2023 to 2029 due to cost competitiveness, skilled workforce, and a robust digital ecosystem, according to a report by global investment bank ARC Group.

Southeast Asia - Fri, July 4, 2025 | 3:23 pm GMT+7

Tetra Pak inaugurates expanded aseptic packaging plant in southern Vietnam

Tetra Pak inaugurates expanded aseptic packaging plant in southern Vietnam

Swedish food processing and packaging giant Tetra Pak has inaugurated the second phase worth EUR97 million of its aseptic packaging plant located in the VSIP II-A Industrial Park in Ho Chi Minh City, bringing the total investment to EUR217 million.

Companies - Fri, July 4, 2025 | 3:16 pm GMT+7

Vietnam Prime Minister requests early removal of credit growth limits

Vietnam Prime Minister requests early removal of credit growth limits

Prime Minister Pham Minh Chinh on Thursday instructed Vietnam's central bank to urgently consider removing the administrative tool of setting credit growth quotas for individual banks, and shift toward a market-based control mechanism.

Banking - Fri, July 4, 2025 | 3:14 pm GMT+7

Vietnam GDP growth hits 7.3% in H1, highest in 17 years: Minister

Vietnam GDP growth hits 7.3% in H1, highest in 17 years: Minister

Vietnam’s GDP is expected to increase by 7.3% in the first half of this year, the highest level since 2008, said Minister of Finance Nguyen Van Thang.

Economy - Fri, July 4, 2025 | 2:31 pm GMT+7

Vietnam’s realty market may soon shift from undersupply to oversupply: experts

Vietnam’s realty market may soon shift from undersupply to oversupply: experts

The real estate market in Vietnam will soon face oversupply, a reversal of the supply shortage seen in recent years, according to economist Dr. Le Xuan Nghia.

Real Estate - Fri, July 4, 2025 | 11:29 am GMT+7

Vietnam’s benchmark VN-Index likely to reach 1,500 points on new US tariff: broker

Vietnam’s benchmark VN-Index likely to reach 1,500 points on new US tariff: broker

The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), may reach 1,500 points in the coming time as the tariff agreement reached with the U.S. is expected to boost investor sentiment, according to Maybank Securities Vietnam (MSVN).

Finance - Fri, July 4, 2025 | 8:38 am GMT+7

Chinese materials major Kingfa on track to complete $80 mln plant in southern Vietnam

Chinese materials major Kingfa on track to complete $80 mln plant in southern Vietnam

Kingfa, China’s leading advanced materials company, on Wednesday held a topping-out ceremony for its $80 million plant in Dong Nai province, a key industrial hub in southern Vietnam.

Industries - Fri, July 4, 2025 | 8:23 am GMT+7

Vietnam’s stock market expects upgrading in September

Vietnam’s stock market expects upgrading in September

The State Securities Commission (SSC) is working intensively with ministries and stakeholders to settle remaining issues and improve foreign investor access, a critical step ahead of the expected review in September, Deputy Finance Minister Nguyen Duc Chi said at his ministry's (MoF) press meeting on Wednesday.

Finance - Thu, July 3, 2025 | 9:23 pm GMT+7

Vietnam's construction giant Coteccons plans $53 mln bond issue

Vietnam's construction giant Coteccons plans $53 mln bond issue

Vietnamese construction giant Coteccons (HoSE: CTD) plans to issue bonds worth up to VND1.4 trillion ($53.45 million) to the public this year as part of its 2025 capital mobilization plan, according to a company release.

Companies - Thu, July 3, 2025 | 8:12 pm GMT+7

Over $534 mln needed for central Vietnam city’s seaport infrastructure

Over $534 mln needed for central Vietnam city’s seaport infrastructure

Hue city in central Vietnam needs about VND14.05 trillion ($534.24 million) in investment for its seaport system during the 2021-2030 span, with approximately VND12.79 trillion ($488.05 million) for wharves.

Infrastructure - Thu, July 3, 2025 | 4:24 pm GMT+7

Ca Na LNG-fueled power project in central Vietnam extends bidding deadline

Ca Na LNG-fueled power project in central Vietnam extends bidding deadline

The bidding deadline for the Ca Na LNG-to-power project in south-central Vietnam's Khanh Hoa province has been extended to 2 p.m. on July 19, 2025.

Energy - Thu, July 3, 2025 | 4:06 pm GMT+7

USD price in Vietnam hits new peak as US, Vietnam reach agreement on trade deal framework

USD price in Vietnam hits new peak as US, Vietnam reach agreement on trade deal framework

Vietnamese banks on Thursday raised the USD price to the central bank-regulated ceiling of VND26,345, 3.1% higher than at the beginning of the year.

Banking - Thu, July 3, 2025 | 3:47 pm GMT+7