MBBank leaders: Trung Nam and Novaland are still paying debts normally.

Responding to shareholder questions, MBBank leaders said that the debts of Trung Nam and Novaland both have collateral assets 2.5 - 3 times larger than the outstanding debt. At the same time, these two customers are still paying their debts normally.

Mr. Pham Nhu Anh - General Director of MBBank - Photo: MBB

At the investor conference to update the 2024 business results, Mr. Pham Nhu Anh - General Director of MBBank - continued to receive questions from shareholders about the debts of Novaland and Trung Nam Group.

Mr. Anh said that by the end of 2024, the debts of the two large enterprises mentioned above are both in group 1 (debts that are due and are assessed to be fully recoverable, both principal and interest, on time).

According to Mr. Anh, many large projects of Novaland are in the process of legal settlement, these debts are all secured by assets.

Regarding Trung Nam, Mr. Anh also expects that by the end of the first quarter of 2025, the outstanding issues related to customers in the renewable energy industry will be resolved, thereby ensuring that the bank's debt will be safe.

Sharing more, Ms. Pham Thi Trung Ha - Deputy General Director of MB - also confirmed that the debts of Trung Nam and Novaland both have collateral assets 2.5 - 3 times larger than the outstanding debt. "These businesses are still paying their debts normally," Ms. Ha said.

Previously, at many meetings with investors and shareholders, bank leaders were questioned about the debts of Novaland and Trung Nam in the context of difficult business situations of these two enterprises and many stuck projects.

In 2023, Trung Nam Construction Investment Joint Stock Company reported a loss after tax of up to VND 2,878 billion, after a profit of VND 252 billion in 2022. Meanwhile, Novaland's consolidated profit after tax in the first 9 months of 2024 recorded a negative VND 4,376 billion.

Returning to MBBank's business situation, General Director Pham Nhu Anh shared that the bank's individual pre-tax profit in 2024 is estimated to increase by about 12% compared to 2023, reaching VND 27,600 billion. Meanwhile, consolidated pre-tax profit will increase by about 9.5-10%.

Notably, MBBank's credit in 2024 increased by 24.3%, while mobilization increased by 19%.

Mr. Anh said that MBBank could be the bank with the highest growth rate in the banking industry. By 2025, the economy is forecast to improve, the Government expects growth of 8-10%.

"If GDP growth results are high, banks will have more freedom and better room to lend," Mr. Anh said, predicting that MBBank's credit growth could reach 25-26%.

MBBank leaders also affirmed that the bank's credit will focus on retail, small and medium enterprises, and the rest will be for large enterprises.

Amid concerns that Circular 02 of the State Bank will expire at the end of 2024, causing bad debts to increase, MBBank leaders said that restructured debts have been fully provisioned.

After 2024, customers who are unable to repay their debts will be transferred to normal bad debt status, but in general, the ratios will still be within the bank's control.

Not only concerned about the debt at Novaland and Nam Trung, the story of the zero-dong bank structure is also a hot topic in the shareholder meeting of MB leaders today.

MBV's business results are not consolidated with MBBank's.

Ocean Commercial Joint Stock Bank (Ocean Bank) has officially announced its name change to Modern Bank of Vietnam (MBV).

MBV is a member of the MB Group ecosystem, including 3 banks (MB, MBCambodia, MBV) and 6 member companies (MBS, MBCapital, MIC, MB Ageas, MBAMC, Mcredit).

Mr. Pham Nhu Anh said that when taking over the zero-dong bank in mid-October last year, MBBank focused its resources on technology, sent a team of experienced personnel to perfect the apparatus and came up with a strategic plan to participate in restructuring.

At the same time, MBBank CEO said that MBBank's consolidated reported profit will not consolidate MBV's business results.

Source: https://tuoitre.vn/lanh-dao-mbbank-trung-nam-novaland-van-dang-tra-no-binh-thuong-20250111084613429.htm