MB Chairman: "MB people say they will do it, and if they do it, they must do it."

On March 6, 2024, Military Commercial Joint Stock Bank (MB, stock code MBB) held a meeting with investors to inform about business results and growth drivers in 2024.

In discussions with investors, in addition to the content of the 2024 business plan, even issues that many other banks often consider "sensitive" to operations were frankly shared by MB leaders, without avoidance.

Talking about 2023, MB leaders said that last year was a difficult year for the economy, but MB still achieved positive results, being in the group of 3 banks with the highest profits, just after Vietcombank and BIDV. Not only did it surpass VietinBank and Agribank (in the Big4 group), MB is also creating a large gap with other joint stock banks in the system. The total number of new customers coming to MB last year reached more than 6 million, the third consecutive year reaching over 6 million new customers per year, bringing the total number of customers served at the end of 2023 to more than 26 million people. MB Group's member companies also operated effectively and maintained their market share.

Regarding 2024, MB has a rather optimistic view in the context of the recovering economy. MB's Chairman assessed that the most difficult period of the real estate market has passed (falling in the third quarter of last year).

For MB, the Bank is determined to continue to grow with three solid driving forces: retail; digital transformation and group synergy - all of which MB is strong at. Mr. Luu Trung Thai, Chairman of MB, affirmed that this bank will conquer the milestone of 30 million customers before its 30th birthday (in November 2024). Currently, MB is the leading bank in digitalization, with transactions on digital channels accounting for 97%, equivalent to the top banks in Asia. MB determines that digital platforms will account for about 50-60% of the bank's revenue in the near future. At the same time, MB will also transform its business model towards ESG to ensure sustainable development. Currently, MB is in the top banks with the largest green credit balance.

MB Chairman Luu Trung Thai

Not only talking about the growth momentum and prospects of MB, but at the event, Chairman Luu Trung Thai and members of the Board of Directors and Executive Board of MB also answered many questions from investors about the development of subsidiaries (especially the insurance sector, the issue of finding strategic partners); about the issuance of preferential shares to Viettel, SCIC, about the business situation of the Bank in the Southern region...

Notably, in addition to the content of the business plan, even issues that other banks often "avoid" because they are considered "sensitive" to operations were also answered by MB leaders. These include why bad debt increased, the risk provision for bad debt decreased; debt classification of customer groups that are "big" real estate companies that have encountered many difficulties in recent times; about the credit relationship with Vinfast; about the story of accepting the restructuring of "zero-dong banks" when it will be implemented; about stocks and shares. MB is even not afraid to directly compare with other banks so that investors can better understand the Bank.

At the event, MB leaders also talked about the advantages of this bank in the market. According to Mr. Dam Nhan Duc, PhD, Chief Economist of the Military Bank, MB has clear differences from other banks in the system, which is leading in digital transformation, CASA ratio, retail segment... and especially the desire to "fight", with the spirit of innovation and creativity in each MB person.

"This comes from the history of MB's formation, the Bank's leaders all have strong personalities and determination. MB people say they do, and if they do, they must do it. It is that determination, the "gene" in MB people that has helped MB grow quickly and steadily in the past period as well as in the future" - Mr. Duc added.

Dr. Dam Nhan Duc, Chief Economist of MB

It is known that in 2024, MB plans to increase its profit by at least 10% (equivalent to more than VND 28,800 billion); credit growth by 16% (and the bank's leaders expect it to be higher than the level allowed by the State Bank); capital mobilization increases by 12%. The bank also plans to pay dividends to shareholders, but the specific figure will be announced later, possibly at the Annual General Meeting of Shareholders on April 19.

MB Bank