MBBank spends more than 500 billion VND to buy back bonds before maturity

Hanoi Stock Exchange (HNX) has just announced the bond transaction of Military Commercial Joint Stock Bank (MBBank - HoSE: MBB).

Specifically, on September 25, 2023, MBBank purchased back all 51,500 outstanding bonds of code MBBL2128006 with a par value of VND 10 million/bond, equivalent to VND 515 billion.

It is known that the bond lot was issued on September 23, 2021 with a term of 7 years, not maturing until September 23, 2028. The issuance interest rate of this bond lot is 7.03%/year.

This is a non-convertible bond, without warrants, not secured by assets, the bond establishes the direct debt repayment obligation of the issuing organization and is issued in the form of a book entry.

The purpose of mobilizing the above bond lot is to supplement long-term Tier II capital according to the regulations of the State Bank, serving the credit needs as well as increasing the scale of the Bank's operating capital to meet the business growth target in 2021 and the following years.

According to information from HNX, this is the second batch of bonds that this bank has bought back this year. Previously, on August 31, MBBank also bought back 10,000 bonds with the code MBBL2128003 with a face value of VND 10 million/bond, equivalent to VND 100 billion. The above bond batch was issued on August 31, 2021, with a term of 7 years and a maturity date of August 31, 2028.

Not only stopping at buying bonds, on September 22, 2023, MB Bank also successfully mobilized 100 bonds with code MBBL2330001 to the market with a face value of 1 billion VND/bond, equivalent to 100 billion VND.

The bonds have a term of 7 years, issued in the domestic market with an interest rate of 7.5%/year. This is the first bond issued by this bank this year.

Regarding business results, MBBank recorded net interest income in the first 6 months of 2023 reaching VND 19,709 billion, an increase of nearly 14% over the same period last year. Profit from trading securities increased by 19.4% to VND 160 billion.

In contrast, MBBank's net profit from trading investment securities and long-term investments decreased by 77.3% year-on-year to VND244 billion. Net profit from other bank activities also decreased by 0.8% compared to the first 6 months of 2022, reaching VND1,096 billion. Income from capital contribution to buy shares decreased sharply by 69.7% year-on-year to VND36.5 billion.

MBBank's pre-tax profit in the first half of 2023 was VND12,735 billion, up 7% over the same period last year. The bank's after-tax profit reached VND10,188 billion. With the achieved results, MB Bank has achieved nearly 49% of the annual profit plan.

On the market, at the end of the session on October 2, MBB shares increased by 0.54% to VND 18,600/share with a trading volume of more than 4.5 million units .

Thu Huong

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