Accordingly, the Shareholders’ Meeting approved the 2024 business targets with total assets reaching VND 280,000 billion, an increase of 5% compared to 2023; capital mobilized from market I and bonds raised capital reaching VND 178,900 billion, an increase of 27% compared to the previous year. The bank expects credit growth at 18%(*), expected to reach VND 178,200 billion. Pre-tax profit is expected to increase by 17% compared to 2023, reaching VND 6,800 billion; The bad debt ratio is controlled under 3% according to regulations of the State Bank.
The Shareholders’ Meeting also agreed on the plan to increase charter capital to VND 26,000 billion through the payment of stock dividends at a rate of 30% from retained earnings. The implementation time is assigned by shareholders to the bank to process depending on market developments and MSB’s business situation, expected in the third quarter of 2024 when the stock market returns to a more sustainable growth momentum.
In addition, the bank also carried out the procedure to elect a replacement member of the Board of Directors to complete the senior staff. Accordingly, Mr. Vo Tan Long (born in 1968, currently Chairman of the MSB Technology Committee) became a Member of the Board of Directors for the seventh term (2022 – 2026) replacing Ms. Nguyen Thi Thien Huong. The Shareholders’ Meeting also approved the dismissal of Ms. Nguyen Thi Thien Huong from the position of Member of the Board of Directors due to her resignation earlier for personal reasons. Thus, MSB’s Board of Directors still maintains 7 members.
Also at the Meeting, answering shareholders’ questions about the business situation in the first quarter of 2024, Mr. Nguyen Hoang Linh – CEO of MSB said that according to estimated figures, the bank has recorded bright spots with some basic indicators, closely following the orientation set out from the beginning. First quarter credit growth is estimated at 5.6%. Customer deposits increased by 4% compared to the end of 2023. In the context of low mobilization interest rates, demand deposits recorded about VND 40,000 billion, an increase of about 4% compared to the end of 2023 and 15% compared to the same period last year. This is the basis for MSB to raise the CASA/Total Deposit ratio to over 29%, nearly 3 percentage points higher than that of December 31, 2023.
According to the estimated results, MSB’s non-interest income/total income maintained an effective ratio of over 24%, resulting from the outstanding contribution of foreign exchange business with net interest income in this area reaching nearly VND 600 billion, an increase of over 300% compared to the same period last year. Explaining this, Mr. Nguyen Hoang Linh said that MSB focuses on import-export enterprises and individuals with foreign exchange needs (such as travel, use of health services, studying abroad…). With the orientation of “Customer-centricity”, MSB brings useful and valuable products and services with a streamlined digital process, along with effective companionship and consultation. In addition, MSB’s exchange rate fluctuation risk hedging products are also positively evaluated by customers due to their high accuracy in predicting exchange rate fluctuations, bringing advantages to the bank in the market. Therefore, MSB has built a loyal foreign exchange customer base and is always expanding market share as well as position in this field. By the end of the first three months of the year, MSB’s pre-tax profit is expected to reach over VND 1,500 billion, a slight increase compared to the first quarter of 2023.
Regarding liquidity and capital, the capital platform is closely managed by the bank. As of March 31, 2024, the consolidated capital adequacy ratio (CAR) is expected to be nearly 12.2%, much higher than the minimum of 8% as prescribed.
(*) subject to the approval of the State Bank from time to time
