Bank Chairman After Mandatory Transfer: This Year Will Definitely Stop Losses

The debt of the Novaland customer group and Trung Nam Company (Trung Nam Group) has always been of interest to investors and has raised questions to the leadership of the Military Commercial Joint Stock Bank (MB) at the General Meeting of Shareholders as well as investor conferences.

At the Investor Conference organized online by MB on the afternoon of August 5, MB leaders shared about the situation of MBV bank after the mandatory transfer.

In 2024, MB will receive the compulsory transfer of OceanBank and change its name to MBV. According to Mr. Vu Thanh Trung, Vice Chairman of MB and Chairman of MBV, MBV's business activities are closely following the set plan and goals.

"After more than 10 years of continuous losses, this year MBV will definitely stop losing money," Mr. Trung affirmed.

Although admitting that the MBV restructuring process faces many challenges, the bank representative affirmed that MBV's impact is still small compared to the entire scale of MB.

According to Mr. Luu Trung Thai, Chairman of MB, MB's credit growth this year is at least 25%. In the period of 2026-2028, the bank has also been allocated the highest credit growth limit (room) in the market thanks to its role in restructuring MBV.

Regarding the proposal to remove the credit room, Mr. Thai said: "In the context of an incomplete financial market, controlling the credit room is an objective requirement. In the short term, we cannot relax. There was a period of 7 years when we did not control the room and the consequences were many - including OceanBank. Therefore, removing the credit room is a long-term policy, requiring appropriate conditions and roadmap."

At the conference, MB Chairman once again shared with shareholders about two notable debts of Trung Nam and Novaland .

According to Mr. Thai, Novaland's outstanding debt has decreased compared to the same period last year. The company currently has many large-scale strategic projects and is in the process of completing legal procedures.

Regarding Trung Nam Group's debt, MB's Chairman affirmed: "Trung Nam's debt is not a problem. Last year, we didn't even want to collect the debt because they still paid regularly. Compared to the same period last year, Trung Nam paid more than 1,000 billion VND to MB."

Mr. Thai said: “The outstanding debt of Novaland and Trung Nam groups did not increase and no bad debt arose. Previously, Novaland encountered difficulties in the restructuring process, but now the situation has improved significantly compared to last year. Therefore, banks can consider continuing to lend.”

MB aims to recover about VND5,000 billion in bad debt by the end of 2025. In the first 6 months of the year alone, the bank has completed 50% of this target.

“Regarding real estate lending, we are very cautious, even with commercial real estate, industrial parks or consumer real estate. Particularly for commercial real estate, MB strictly controls the annual lending limit to ensure risk management,” Mr. Thai emphasized.

MB recorded consolidated pre-tax profit in the first 6 months of the year of nearly 15,900 billion VND, an increase of 18.3% over the same period in 2024. Photo: Pham Hai.

According to MB's second quarter 2025 financial report, outstanding loans for real estate business activities as of June 30 were VND 85,534 billion, accounting for 10.3% of total outstanding loans, up 1.57% compared to the beginning of the year.

Customer deposits also recorded a growth of 10%, reaching over VND783,000 billion. In particular, demand deposits (CASA) continued to be a bright spot, reaching nearly VND297,000 billion, accounting for 38% of total customer deposits, making the bank the market leader in CASA for two consecutive quarters.

In the first 6 months of the year, MB recorded consolidated pre-tax profit of nearly VND 15,900 billion, up 18.3% over the same period in 2024. Total operating income reached VND 32,600 billion, up 24.6%, of which service income increased by 37%.

At the conference, Ms. Nguyen Thanh Nga, Chief Financial Officer of MB Bank, informed that the total pre-tax profit of member companies of MB Group reached 1,633 billion VND, an increase of 39% over the same period, contributing 10% of the group's total profit.

Of which, MB Bank maintained the Top 1 market position in bancasurance (insurance distribution through banks); Mcredit maintained the Top 3 market position in consumer finance with outstanding loans of VND 28,500 billion as of June 30; MIC reached the Top 4 market position in non-life insurance; MBS Securities reached the Top 7 market position in brokerage market share.

Regarding the insurance companies MIC and MB Ageas, Mr. Luu Trung Thai revealed that these two "golden gooses" are expected to bring MB about 10,000 billion VND in revenue in 2025.

Source: https://vietnamnet.vn/chu-tich-mb-noi-ve-ngan-hang-chuyen-giao-bat-buoc-nam-nay-chac-chan-se-dung-lo-2429013.html