Military Commercial Joint Stock Bank (MB, stock code MBB) has just announced its business results for the third quarter of 2023 and the first three quarters of the year. Accordingly, MB maintained a positive growth rate, effectively managed operating costs, and continued to affirm its leading position in the digital transformation race of the banking industry.
Powerful digitalization
“For us, the definition of MB is no longer simply a bank, but MB wants to become a digital enterprise” - is the affirmation of Mr. Luu Trung Thai - Chairman of the Board of Directors of MB at the forum organized by Forbes recently. That determination of MB is clearly demonstrated in the investment strategy in technology and the bank's platform as well as the different digital products MB brings to the market.
MB maintains the development of the digital ecosystem on two platforms: App MBBank (individual customers) and BIZ MBBank (corporate customers). By the end of September 2023, MB recorded 1.5 billion transactions on digital channels with a transaction value of 7 million billion VND. The transaction scale on digital platforms remains high at 96%, equivalent to the top banks in Asia. At the same time, MB is a bank in the top applications with more than 10 million active accounts in Vietnam.
According to the head of MB, the bank has the ability to cooperate with more than 200 partners through the mini-app model, providing direct services to 25 million customers. This is considered a useful and friendly model for both users, businesses and technology partners.
In early October 2023, MB was honored to receive the "Asia's Excellent Enterprise" award for the fourth consecutive time and had four solutions winning the "Vietnam Digital Transformation 2023" award thanks to its high technology content, user-friendliness, and customer experience.
Completed 20% dividend payment in cash and shares
Always focusing on harmonizing the interests of the bank, customers, shareholders and investors, MB has completed the payment of cash dividends at a rate of 5% and stock dividends at a rate of 15% in the third quarter of 2023 in accordance with the resolution approved by shareholders.
In addition, the plan to increase charter capital approved at the Annual General Meeting of Shareholders is still being actively implemented by MB. Specifically, the total charter capital is expected to increase in 2023 from VND 45,340 billion (December 31, 2022) to VND 52,141 billion. The additional capital will be mainly used for capacity building investment, including system investment, technology solutions, investment in headquarters in Ho Chi Minh City and key areas, etc., and at the same time supplement business investment capital.
Maintain steady growth
In the first 9 months of 2023, MB's consolidated pre-tax profit reached more than VND 20,000 billion, up 10% compared to the first 9 months of 2022. Of which, the bank alone reported a profit of VND 18,866 billion, up 15% compared to the first 9 months of last year, showing stable growth in the bank's business operations.
The bank recorded positive credit growth with total outstanding loans of the whole group reaching nearly VND 577,000 billion, equivalent to an increase of nearly 14% compared to 2022. This is also a higher growth rate than the average of the entire banking industry. In addition, the scale of MB's customer deposits also increased by 8.1% compared to the previous year, reaching VND 479,733 billion.
The bank's net interest margin (NIM) decreased slightly by 0.08% compared to 2022. MB representative said this came from MB's focus on reducing lending interest rates to support businesses in the difficult business context, in line with the policies of the Government and the State Bank.
In the context of many economic challenges, since the beginning of the year, MB has focused on ensuring safety indicators, optimizing operational efficiency as well as cost management. In addition to improving customer service experience, the digitalization process has been helping MB significantly reduce operating costs, improve operational efficiency, and better manage risks according to ESG international standards. As a result, the CIR ratio (operating costs/total income) of the entire group has improved significantly, optimizing by 2% compared to the same period in 2022; in which, the bank's own CIR decreased to 28.5%.
In the last three months of the year as well as the following years, MB will continue to invest systematically and strongly in digital transformation, continuously developing and refining key digital platforms to bring the most convenient experience to customers.
“We believe that digital platforms will contribute about 50% of the bank’s revenue within the next 4 years,” said Mr. Luu Trung Thai, Chairman of MB’s Board of Directors. That will be the “leverage” for MB to realize its strategic goal of becoming a digital enterprise, a leading financial group that has set out for the 2022-2026 period.
Thu Loan
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