MB Investor Conference: Continue to focus on platform business and customer attraction
On March 6, 2024, the Military Commercial Joint Stock Bank (MB, stock code MBB) held an Investors Conference to inform about business results and growth drivers in 2024. Mr. Luu Trung Thai, Chairman of the Board of Directors (BOD) chaired the meeting. Opening the event, Mr. Dam Nhan Duc, Chief Economist of MB, assessed the growth drivers of the banking industry in 2024, including: economic recovery; Vietnam is in the golden population period and the Government will take advantage of this opportunity; credit growth is high compared to GDP (usually more than double), especially retail credit is always higher than the credit growth of the whole industry; digital payments have increased sharply, averaging about 30% but transactions through digital channels have grown strongly. Along with Vietnam's credit/GDP ratio being lower than that of countries like Thailand, Singapore, etc., these are growth drivers for banks in general, including MB, especially in the retail and digital segments. In 2023, MB maintained a stable growth rate, member companies grew sustainably and maintained market share. The group's total profit was more than VND 26.3 trillion, the highest level ever. In terms of asset quality, if viewed by quarter, MB has overcome the most difficult period; bad debts are all well provisioned. In addition, MB has shifted and expanded retail well, currently leading in digital transformation and has the largest transaction turnover on digital channels; CASA (the proportion of non-term deposits in total deposits) has grown sustainably over the years and is at the top of the market. Mr. Luu Hoai Son, Director of Planning & Marketing Department, said that in 2024, MB expects credit growth to be higher than the assigned 16% and on the basis of growth like the last quarter, MB expects profit to reach more than 28.8 trillion VND. MB's growth momentum in 2024 and the following years, MB expects to rely on 3 major growth drivers: retail, digital transformation and group synergy.
Chairman of the Board of Directors Luu Trung Thai directly chaired the Conference. Photo MB
Directly running the Conference and presiding over answering questions from investors, Chairman of the Board of Directors Luu Trung Thai shared that MB's digital transformation is based on only two key points: Customer Attraction and Platform Business. "In 2024 and the next 5-year orientation, MB will continue to focus on this unwavering orientation" - the head of MB affirmed. He also said that MB aims to conquer 30 million customers before the 30th anniversary of MB (November 4, 1994 - November 4, 2024). In addition, MB determined that digital platforms will account for about 50% - 60% of the bank's revenue in the near future. According to information at the event, MB's digital transaction service capacity is currently equivalent to that of the top banks in Asia with 97% of transaction volume conducted via digital channels. MB's transaction volume via Napas is in the Top 1 among banks for 3 consecutive years (2021, 2022, 2023). The number of transactions on digital channels reached 3.6 billion transactions, an increase of 80% compared to 2022.
In addition to the advantages, MB also identified certain difficulties and challenges. The first is credit management. Currently, MB has implemented a multi-layered credit risk management model. In addition, the bank has also transformed MB's business model towards ESG to ensure sustainable development. "Currently, MB has the largest green loan balance in the market," said the Chairman of MB. "In addition to green projects, MB will participate in projects with large environmental impacts - accordingly, with MB's participation and our higher requirements for environmental protection, the project's emissions will be significantly reduced" - Mr. Luu Trung Thai, Chairman of the Board of Directors shared more.MB
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