MB Bank to hold 2024 Annual General Shareholders’ Meeting

Shareholder attendance and agenda

– As of 08:25 AM, 1,166 shareholders registered to attend the meeting, representing 33,347 billion VND in equity, or 63.96% of voting shares.

– Changes have been made to the content presented to shareholders. Previously, the bank planned to elect a new Board of Directors and Supervisory Board for the 2024-2029 term at the Annual General Meeting of Shareholders. Accordingly, the BOD would consist of 11 members, including 1 independent member, while the Supervisory Board would have 5 members.

– However, speaking at the meeting, MB Chairman Luu Trung Thai announced that the procedures for electing a new BOD and Supervisory Board would not be conducted at the meeting. The election will be held at a General Meeting of Shareholders to be scheduled at the earliest possible date, in accordance with regulations.

Dividend of 20%, including 5% in cash

– According to the meeting documents, under the 2023 profit distribution plan, after setting aside reserves, the after-tax profit for 2023 will be approximately 14,774 billion VND. Together with the retained earnings from previous years, MB’s total retained after-tax profit will reach 18,952 billion VND. The bank plans to use 10,613 billion VND to pay dividends to shareholders, with two components totaling 20%.

– Firstly, MB will allocate 2,653 billion VND for a 5% cash dividend. The timing of the cash dividend has not yet been announced.

– Secondly, MB will also allocate 7,959 billion VND for a 15% stock dividend, which will increase the charter capital accordingly. The implementation period for the above plan is during 2024, subject to the approval of the relevant authorities.

– After the dividend distribution, MB’s retained after-tax profit will be 8,339 billion VND.

Charter capital to increase to 61,643 billion VND

– In 2024, MB’s management plans to increase the charter capital by more than 8,579 billion VND. Accordingly, in addition to increasing the capital by 7,959 billion VND through stock dividends, MB will continue with a private placement of 62 million additional shares, equivalent to an increase in charter capital of 620 billion VND. The implementation period is from 2024 to Q2 2025. Previously, the bank completed a private placement of 73 million shares to two shareholders, SCIC and Viettel.

– Upon completion of the two capital increase plans, MB’s charter capital is expected to increase to 61,643 billion VND.

Profit growth in 2024 projected at 6-8%, total assets to reach 1,000 trillion VND

– Regarding the business plan, MB’s management presented a relatively modest profit plan compared to the 16% growth in 2023.

– Specifically, the bank expects pre-tax profit to grow by 6-8%. With the 26,306 billion VND achieved in 2023, MB’s consolidated pre-tax profit in 2024 is projected to reach 27,884 billion VND to 28,411 billion VND.

– In terms of total assets, the bank aims for a 13% increase, reaching nearly 1,068 trillion VND by the end of 2024, becoming the next bank to surpass the 1,000 trillion VND milestone after the Big4 group.

– Credit is forecast to grow by 15-16% in 2024, depending on the limits set by the State Bank of Vietnam (SBV). Mobilization in 2024 will depend on capital utilization needs.

– As for indicators such as ROE, ROA, and CIR, the bank expects to be among the top in the industry. By the end of 2024, MB will reach 30 million customers and will achieve 40 million customers by 2029. The dividend payout ratio for 2024 is expected to be 10-20%.

– During the period from 2024 to 2029, MB’s assets are planned to grow by an average of about 14% per year, with an average growth in capital mobilization over the next 5 years of 15% per year.

– In terms of credit growth, MB targets an average of 15% per year. Meanwhile, the bad debt ratio will be controlled below 2%, and the capital adequacy ratio under Basel II will be maintained at a minimum of 9%.

– The average dividend payout ratio over the next 5 years will be