Military Bank completes procedures to receive weak banks

Mr. Pham Nhu Anh, General Director of MB, informed: “MB does not merge but accepts the compulsory transfer of a weak bank. After receiving it, this bank will remain an independent bank and continue to be restructured. After the successful restructuring, we will consider whether to merge with MB or not.

We expect to complete it in 2024 or 2025, opening the next phase in the next 5 years."

Chairman of the Board of Directors Luu Trung Thai added: "All procedures have been submitted and are only waiting for the Government's approval."

Sharing about the 2024 business plan as well as the bank's development strategy in the next phase, MB leaders said: In 2023, MB has agreed to pay dividends at a rate of 20%, of which 5% is in cash and 15% is paid in shares.

MB Chairman of the Board of Directors Luu Trung Thai reads the report at the General Meeting of Shareholders. Photo: MB.

Mr. Luu Trung Thai affirmed that there are few banks that maintain a steady dividend payment rate for 5 consecutive years like MB.

“If calculated by cash flow, MB’s dividend is always above 20%. This year, we propose to shareholders to pay a 15% dividend in shares,” said Mr. Luu Trung Thai.

According to Mr. Thai, 2024 is a difficult year, so MB only plans to cautiously increase credit growth from 6-8%, but strives for over 10%.

Responding to shareholders' questions, Mr. Thai said that MB has no debt related to SCB's customer group.

According to Mr. Pham Nhu Anh, Novaland's current outstanding debt at MB "is not much" after debt collection in 2023. Mr. Anh did not give a specific figure due to confidentiality requirements with customers.

“Novaland's loans at MB are not worrisome and we are still managing this well,” Mr. Anh shared.

Regarding the 3 solar power projects of Trung Nam Group that have outstanding debts at MB, Mr. Anh said that these 3 projects have generated electricity as planned, the cash flow has been slow in the past 3 months but there are not many concerns.

Regarding personal loans for real estate and cars, MB focuses on customers with real home buying needs. However, the bank does not prioritize car loans, so outstanding car loans are not high, accounting for only 0.2% of total outstanding loans.

Sharing about the business goals for 2024, MB leaders said that the bank continues to strengthen quality and long-term foundation resources with the goal of being in the top 3 in efficiency and safety indicators. MB also aims to conquer 30 million customers on the occasion of its 30th anniversary.

In 2024, MB's Board of Directors plans to increase charter capital by more than VND 8,579 billion.

In addition to increasing capital by VND 7,959 billion through stock dividends, MB continues to plan to issue an additional 62 million shares privately, equivalent to an increase in charter capital of VND 620 billion. The implementation period is from 2024 to the second quarter of 2025. Previously, MB completed the private issuance of 73 million shares to two shareholders, SCIC and Viettel.

After completing the two capital increase plans above, MB's charter capital is expected to increase to VND61,643 billion.

Source: https://vietnamnet.vn/ngan-hang-quan-doi-trinh-xong-thu-tuc-tiep-nhan-ngan-hang-yeu-kem-2272099.html