On March 6, 2024, Military Commercial Joint Stock Bank (MB, stock code MBB) held a meeting with investors to provide information on its business results and growth momentum for 2024.
Regarding 2023, MB’s leadership mentioned that it was a difficult year for the economy, but MB still achieved positive results, ranking among the top 3 banks with the highest profits, after Vietcombank and BIDV. MB not only surpassed VietinBank and Agribank (in the Big4 group), but it also maintained a significant lead over other joint stock banks in the system. The total number of new customers at MB reached over 6 million in the past year, marking the third consecutive year with over 6 million new customers annually, bringing the total number of service customers at the end of 2023 to over 26 million. MB Group’s member companies also operated efficiently and maintained market share.
For 2024, MB has an optimistic outlook in the context of an economic recovery. MB’s Chairman evaluated that the most difficult phase of the real estate market was over (in the third quarter of last year).
Specifically for MB, the bank has identified three solid growth drivers: retail banking, digital transformation, and group synergy – all of which are the bank’s strengths. Mr. Luu Trung Thai, Chairman of MB, affirmed that the bank will reach 30 million customers before its 30th birthday (in November 2024). Currently, MB is the leading bank in digitalization, with digital transactions accounting for 97%, equivalent to top banks in Asia. MB projects that digital platforms will contribute approximately 50-60% of the bank’s revenue in the near future. In parallel, MB will also transform its business model towards ESG to ensure sustainable development. Currently, MB is among the top banks with the largest green credit balance.
MB Chairman Luu Trung Thai
In addition to discussing MB’s growth momentum and prospects, at this event, Chairman Luu Trung Thai and members of the Board of Directors and the Executive Committee of MB also answered a multitude of questions from investors about the development of subsidiary companies (especially in the insurance sector and strategic partnership opportunities), issuing preferential shares to Viettel and SCIC, and the business situation of the bank in the southern region.
Notably, besides discussing business plans, even the topics that other banks often “avoid” due to perceived sensitivity to their operations were addressed by MB’s leadership. Examples include discussing why bad debts increased while risk provision for bad debts decreased, categorizing the debt of real estate “giants” facing difficulties in recent times, the implementation timeline of the “zero dong bank” restructuring plan, and discussions on stocks and shares. MB even compared itself directly with other banks to provide investors with a clearer understanding of the bank.
At the event, MB’s leadership also spoke about the bank’s advantages in the market. According to Dr. Dam Nhan Duc, Chief Economist of the Military Bank, MB has distinct differences compared to other banks in the system, leading in digital transformation, CASA ratio, retail banking, and especially the “fighting spirit” alongside a culture of innovation and creativity in each individual at MB.
“This stems from MB’s formation history, where the bank’s leaders have strong personalities and determination. When people at MB say they will do something, they actually do it. This determination, the “gene” within MB’s individuals, has helped the bank grow rapidly and steadily during the past period and in the future,” added Dr. Duc.
Dr. Dam Nhan Duc, Chief Economist of MB
In 2024, MB has planned for a profit growth of at least 10% (equivalent to over VND 28.8 trillion), credit growth of 16% (with the bank’s leadership expecting to exceed the allowed limit set by the State Bank of Vietnam), and a 12% increase in capital mobilization. The bank also plans to distribute dividends to shareholders, but the specific amount will be announced later, possibly at the Annual General Meeting of Shareholders on April 19.
