MB has completed the procedures for compulsory transfer of a weak bank, expected to be completed this year or in 2025, if the Government approves.
This information was shared by CEO of Military Bank (MB) Pham Nhu Anh at the annual meeting on the morning of April 19.
According to Mr. Anh, the project to transfer a weak bank has been completed by MB and sent to the State Bank to submit to the Government. MB CEO said that the bank hopes to "finalize" this transfer deal this year or 2025 to "open up new development space for MB, especially credit growth".
Adding, Chairman of the Board of Directors Luu Trung Thai said that this bank is "ready for the assigned task, just waiting for the Government's approval".
Previously, at the banking industry conference earlier this year, Mr. Thai also proposed that the Government soon approve a plan to accept the compulsory transfer of weak banks in the first quarter.
The name of the bank that MB will receive the transfer from has not been mentioned by the bank's leaders at today's shareholders' meeting. However, in April 2023, a leader of this unit revealed basic information about the asset quality of the unit that will receive it, such as an accumulated loss of about VND 20,000 billion and a bad debt ratio of 47%. Therefore, it is likely that this could be Ocean Bank - the bank that bought it for 0 VND with an accumulated loss of nearly VND 20,000 billion.
Currently, besides Oceanbank, the market has 4 organizations that are also under special control, including Construction Bank (CBBank), Global Petroleum Bank (GPBank) and DongA Bank (DongABank).
Mr. Luu Trung Thai, Chairman of MB, answered shareholders' questions on the morning of April 19. Photo: MB
Last year, MB's credit growth reached 28.2% - among the top in the industry when the bank made the most of its approved credit room. This year, the bank is assigned a growth rate of 15-16%.
Chairman Luu Trung Thai said that MB is still preparing for a situation where loan growth is higher than the general market level, with good economic conditions and being assigned to restructure the bank at 0 VND.
In the first quarter, the bank estimated consolidated profit of nearly VND5,780 billion, down about 11% over the same period last year.
This year, the bank aims to increase consolidated pre-tax profit by 6-8% compared to 2023, to VND27,800-28,400 billion and total assets to exceed VND1 million billion. MB leaders believe that this is a safe and prudent plan in the context of reduced demand for loan absorption, bad debt in the whole industry doubled last year, so the pressure on bad debt provisioning increases.
Anh Tu
Source: https://vnexpress.net/mb-co-the-nhan-chuyen-giao-ngan-hang-bat-buoc-nam-nay-4736145.html
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