According to FiinRatings, the above ratings reflect the expectation that the bank's credit profile will remain stable over the next 12-24 months. MSB's credit profile is currently reinforced by a solid business foundation, a capital buffer that is superior to the industry average, and stable profitability. The bank has also improved its ability to handle bad debts and manage risks, while maintaining access to diverse sources of capital and a suitable liquidity position.
In terms of business position, FiinRatings rated MSB at “Adequate”, reflecting its stable operating capacity with a diversified revenue structure and an increasingly expanding customer base. During the 2020-2024 period, MSB has increased its strong competition in the SME lending segment, thereby increasing its market share and consolidating its position in the mid-sized private banking group.
In terms of total outstanding loans, in 2024, the bank will maintain high credit growth - 18.3%, exceeding the industry average of 15.1%. It is forecasted that in the period of 2025-2026, MSB will continue to maintain credit growth at 19.5%. In addition, FiinRatings emphasized that the highlight in MSB's income structure is the strong increase in non-interest income, in which foreign exchange trading accounts for a high proportion and contributes 27% of non-interest revenue in 2024.
Regarding capital profile and profitability, FiinRatings also rated MSB as “Good”, reflecting a strong capital buffer that will continue to be maintained thanks to better-than-industry profitability. MSB’s capital adequacy ratio (CAR) as of December 31, 2024 is 12.4%, higher than the industry median (11.9%), FiinRatings expects MSB to maintain a stable CAR ratio in the range of 12-13% with its current high Tier 1 capital ratio.
FiinRatings rates MSB's capital profile and profitability at "Good" (Photo: MSB)
In terms of profitability, MSB is assessed to have a profit margin and profitability efficiency higher than the average, and has remained stable for many years. Although the lending interest rate trend has been gradually decreasing since 2022, the bank has maintained a net interest margin (NIM) and return on assets (ROA) higher than the industry average in the past 5 years, reaching 3.7% and 1.9% respectively in 2024.
In addition to focusing on profitability, MSB also focuses on risk management. FiinRatings assessed MSB’s risk position as “Adequate”, emphasizing the bank’s effective implementation of risk management mechanisms, especially in handling bad debts. FiinRatings expects MSB to continue to control credit quality well and reduce the ratio of problem assets to total outstanding customer loans.
Another important factor in MSB's first credit rating report that FiinRatings mentioned is capital mobilization and liquidity. FiinRatings rated this criterion of the bank at "Adequate", reflecting the ability to access diverse capital sources at reasonable costs. MSB has proactively increased capital mobilization from international financial institutions with long-term terms from 5 to 9 years, with a total mobilization limit of up to VND 6,500 billion as of the first quarter of 2025, supporting green loans to serve the bank's sustainable development goals.
With a cost of funds maintained at 3.3%, MSB is maintaining its competitive position among the top private banks. MSB's CASA ratio is also significantly higher than the industry median (12.2%), reaching 26.4% by the end of fiscal year 2024.
FiinRatings also noted that if MSB continues to improve its business position through a clear improvement in deposit market share and strong growth in customer loans, while strengthening its capital buffer and maintaining higher profitability than the industry average, the bank could be considered for a credit rating upgrade in the future.
With an “A” credit rating and a Stable rating outlook, MSB affirms its financial capacity and solid position in the market, focusing on a sustainable development strategy, promoting personal and SME lending activities according to a long-term strategy while developing innovative financial products to enhance value for partners, shareholders and customers.
For details on FiinRatings' report, see: https://fiinratings.vn/RatingDetail/2147
Source: https://dantri.com.vn/kinh-doanh/fiinratings-cong-bo-xep-hang-tin-nhiem-a-cho-msb-voi-trien-vong-on-dinh-20250618150431486.htm
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