MB – Vietnam Joint Stock Commercial Bank for Industry and Trade (MB, stock code MBB) has recently announced its business results for 2023. Accordingly, MB has experienced strong growth in terms of scale, with total assets reaching approximately VND 950 trillion, a growth of nearly 30%. It maintained a CASA ratio of over 40% and effectively managed operating costs, while reaffirming its leading position in the digital transformation race in the banking industry.
Strong growth in all key indicators
In 2023, MB maximized the credit room approved by the State Bank of Vietnam, with the bank’s credit growth reaching 28.2%. Loans for priority sectors accounted for 65% of the total loan portfolio. MB adjusted interest rates 7 times in 2023, reducing rates by 2% – 4% to support customers’ access to capital, assist in overcoming difficulties, and foster economic growth.
MB maintained sustainable customer growth, with a total of nearly 27 million MB customers as of December 31, 2023. In 2023, MB attracted over 6 million new customers (6.2 million in 2021, 6.9 million in 2022, and 6.3 million in 2023). The transaction ratio on MB’s digital channels reached 97%, and MB’s transaction volume through the NAPAS system ranked first for 3 consecutive years (2021-2023). These impressive numbers were largely attributed to MB’s long-term technology investment strategy, which enabled the bank to continuously expand its growth space and serve large-scale customers. MB’s digital platforms continue to demonstrate their market attractiveness, with the MBBank app being the most downloaded banking app on the Vietnamese App Store for the past three years, currently serving 22.4 million users.
In the past year, MB recorded 3.6 billion non-cash payment transactions, a 1.5-fold increase compared to 2022. Revenue from MB’s digital platforms accounted for 24.4% of the bank’s total revenue. “In the next 4 years, MB aims to have 50% of its revenue come from digital platforms.” – said Mr. Luu Trung Thai – Chairman of the Board of Directors.
Maintaining “CASA leader” with over 40% and impressive growth in card business
MB maintained a stable CASA ratio, with a CASA ratio of 40.1% in 2023. Therefore, MB officially maintained its leading position in CASA among Vietnamese banks for the second consecutive year (Techcombank ranked second with a CASA ratio of 39.9%).
The bank’s customer deposits reached VND 569.640 trillion, a 27.3% increase compared to the beginning of the year. CASA balances in 2023 also grew by nearly 27% compared to 2022.
The card business of MB has recently undergone impressive transformations through the continuous launch of new card products such as Hi ShopeeFood, Hi Slay-dy, MB Stellar payment bracelet, Hi Sky Card… These are standout products in MB’s Hi Collection card series, which have made waves in the market due to their striking designs, leading 2-in-1 card features, and simple and fast card registration on the MB app.
Exceeding all business targets in 2023
For the entire year of 2023, MB’s consolidated pre-tax profit reached over VND 26,306 billion, a growth of 15.7% compared to 2022. Particularly, the bank’s standalone profit reached VND 24,688 billion, a 21.5% increase compared to the previous year, demonstrating stable growth in the bank’s business activities. MB’s high earning capacity is reflected in its ROA and ROE ratios of 2.5% and 25%, respectively.
MB’s operating costs were optimized by an additional 1% compared to 2022. The cost-to-income ratio (CIR) based on the consolidated financial statements was 31.5%, while the bank’s standalone CIR was 29.15%. With its strong digital transformation efforts, MB’s CIR has been optimized for the fourth consecutive year (from 35.56% in 2020 to 29.15% in 2023). This creates room for MB to achieve efficient and strong growth, as well as allocate resources to implement interest rate reduction programs for customers in line with the government’s and the State Bank of Vietnam’s directions.
The non-performing loan ratio in 2023 was about 1.4%, a slight increase of 0.2% compared to June 30, 2023, in line with the banking industry’s trend in 2023.
The bank’s risk provisions were prudently managed. In 2023, MB reversed provisions of over VND 4,800 billion (double compared to 2022) from the successful restructuring of loans for customers affected by Covid in 2020, 2021, and to date. The coverage ratio for non-performing loans in 2023 reached about 116%.
In 2023, Fitch Ratings upgraded MB’s international credit rating from B+ to BB- based on an assessment of profitability, improved asset quality, and the bank’s determined digital transformation process. In its rating report, Fitch Ratings also noted that in the next 12-18 months, MB’s asset quality and profitability will continue to be supported by Vietnam’s sustainable economic growth.
