Be cautious in business planning 2024
At the 2024 Investor Conference of MB Military Commercial Joint Stock Bank (HoSE: MBB), MB's Board of Directors informed about the business results in 2023 and outlined the development goals and driving forces in 2024.
Sharing about the 2024 business plan, Mr. Luu Trung Thai, Chairman of MB's Board of Directors, said that the bank set a more cautious target in 2024. In the context of similar economic growth compared to the fourth quarter of 2023, MB expects profit to reach more than VND 28,800 billion, an increase of about 10% compared to 2023.
Mr. Luu Trung Thai, Chairman of MB Board of Directors, spoke at the conference.
In 2023, MB set a business target of VND 26,200 billion in profit, 15% higher than in 2022. Thus, with the 2024 plan, it can be seen that the bank has been more cautious and cautious.
The reason for being more cautious in setting profit targets, Mr. Thai said, 2024 is still predicted to be a difficult year when the best bad debt scenario is flat, economic growth may be better than 2023, however, domestic enterprises as well as individuals are still facing difficulties. The industry's profit margin in general is declining in 2023, so MB must plan for a safe plan.
At the same time, Mr. Thai also informed that if the economy recovers better in the second half of the year, the bank can expand its profit target.
Speaking more about MB's development goals and motivations in 2024, Mr. Luu Hoai Son - Director of MB Planning and Marketing Department said that in 2024, the State Bank allocated credit growth for MB of about 16%, with an expected credit balance of 360,000 billion VND.
Regarding MB's operations in 2023, Mr. Dam Nhan Duc, Chief Economist of MB, said that the bank has maintained a stable and steady growth rate. Member companies have grown sustainably and maintained market share, such as MB Securities Company (MBS), MB Insurance Company (MIC)...
Mr. Dam Nhan Duc, Chief Economist of MB, spoke at the conference.
In terms of asset quality, by quarter, it can be seen that MB has overcome the most difficult period, bad debts are all well provisioned. In particular, the group's total profit is more than 26,300 billion VND, at the highest level ever.
Mr. Duc said that the growth momentum of the banking industry in 2024 comes from many factors such as businesses taking advantage of opportunities and high credit growth rates. "If in 2023, we only see growth momentum coming from public investment, then in 2024, a clear recovery in import and export and increased consumer demand will support the banking industry to grow better.
3 major growth drivers in 2024
Talking about MB's growth drivers in 2024 and the following years, Mr. Luu Hoai Son said that the bank has 3 major growth drivers.
The first is from retail. MB has many favorable conditions to make this growth strategy reasonable. Specifically, the house has more than 26 million customers and is expected to increase to 30 million customers in 2024. Of which, the number of customers using MB's most basic product, loans, includes a total of 453,000 customers with a good growth rate.
Currently, the number of customers interacting regularly on the App and BizMB is very high, about 10-15% of the number of loan transactions can be transferred on the digital platform and is expected to expand in 2024.
“Retail will help MB’s CASA (non-term deposit ratio - PV) continue to grow in the coming time. In the context of 2024 when credit institutions enter a new economic cycle, meaning that lending interest rates will decrease, the advantage of CASA and capital costs will help MB have good conditions to provide customers with loans at reasonable costs while still ensuring high profits in the future,” Mr. Son shared.
The second driving force comes from digital transformation. As evidenced by specific figures, by the end of 2023, there were a total of 22.4 million MB apps and 248,000 MB Bz.
Over the past years, MB has invested heavily in digital transformation, connecting with the customer ecosystem across all platforms, creating a good customer experience. Thanks to digital transformation, the number of transactions has grown very high, but operating costs and costs for transaction personnel remain the same.
The third growth driver is the Group's synergy. Currently, MB is one of the financial groups with a full range of financial services, from securities, banking, insurance, etc., creating the most complete and largest endogenous driving force in the banking and finance industry. This has clearly shown results through the growth of each member, for example, the number of MBS customers has increased more than 3 times within 2 years.
In addition, Mr. Son also pointed out the current challenges facing the bank. He emphasized the difficulties in credit management. Mr. Son also informed that MB has implemented a multi-layered credit risk management model. In addition, the Bank is also transforming its business model towards ESG to ensure sustainable development .
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