MB plans to issue lots of 3-zero bonds,...

Since the beginning of 2025, the Military Commercial Joint Stock Bank has issued bonds four times with a total value of VND 350 billion, while the target for 2025 is to mobilize a maximum of VND 30,000 billion.

Key features of the military "bank"

According to information, Military Commercial Joint Stock Bank (MBBank), English name is Military Commercial Joint Stock Bank, is one of the leading commercial banks in Vietnam, under the Ministry of National Defense . Established on November 4, 1994, MBBank has continuously developed into a multi-functional financial group, operating in many fields such as banking, securities, insurance, fund management and consumer finance.

The bank is headquartered at 18 Le Van Luong, Cau Giay District, Hanoi. Currently, MBBank owns a network of more than 100 branches, nearly 200 transaction points nationwide and is present in several countries such as Laos, Cambodia and the Russian Federation. With the vision of becoming a digital enterprise - a leading financial group, MBBank is aiming for a modern, digital and customer-centric banking model.

Expected to issue 3-no and 4-no bonds

The bank has undergone many strong charter capital increases to strengthen its financial capacity and expand its scale of operations. In 2021, the bank increased its capital from nearly VND 28,000 billion to more than VND 37,700 billion through stock dividends at a rate of 35%. In 2022, MBBank continued to pay a 20% dividend, raising its charter capital to over VND 45,000 billion. By 2023, the bank issued shares with a 15% dividend, bringing its charter capital to over VND 52,000 billion. In 2024, charter capital increased slightly through the issuance of ESOP shares, reaching over VND 53,000 billion.

In early 2025, MBBank will continue to pay dividends in shares at a rate of 15% and issue shares privately, bringing its charter capital to over VND 61,000 billion (this increase mainly comes from the issuance of nearly 796 million shares to pay dividends at a rate of 15% and the private issuance of an additional 62 million shares, equivalent to an increase of VND 620 billion in charter capital). According to the plan approved by the General Meeting of Shareholders, in 2025, the bank plans to continue to pay dividends of 32% in shares and issue shares privately to increase its charter capital to about VND 81,368 billion.

Big plan but weak implementation

According to information, the Board of Directors of the Military Commercial Joint Stock Bank (MB, stock code: MBB) has just announced a resolution approving plans to issue regular bonds in 2025.

Accordingly, MBBank plans to issue individual bonds with a total value of up to VND30,000 billion in 2025. Of which, VND10,000 billion are bonds to increase Tier 2 capital, the rest are regular bonds not intended to supplement equity capital.

Specifically, MBBank will issue two batches of bonds to increase Tier 2 capital with a total maximum value of VND10,000 billion. In the first batch, MB plans to offer a maximum of 40,000 bonds, with a face value of VND100 million/bond, equivalent to VND4,000 billion, starting from May 2025. In the second batch, MB will issue a maximum of 60,000 bonds, equivalent to VND6,000 billion, starting from June 2025.

Notably, both of the above bond tranches have a term of 5 - 10 years, are issued in a private form, are non-convertible, have no collateral, are not accompanied by warrants and are recorded in tier 2 capital according to current regulations.

In addition, the bank also plans to issue up to 200,000 regular bonds, with a face value of VND100 million/bond, to raise an additional VND20,000 billion in 2025. This type of bond has a term of 2-3 years, is offered individually, is non-convertible, does not come with warrants, is unsecured and is not a secondary debt. All bonds are issued in the form of book entries.

Since the beginning of 2025, according to data from the Hanoi Stock Exchange (HNX), MBBank has conducted 4 bond offerings, of which 3 were successful with a total value of 350 billion VND and one was unsuccessful. Promoting the bond mobilization channel is considered appropriate in the context of MB setting a strong growth target this year.

What are the profit targets and realities?

Regarding the profit plan, at the 2025 annual shareholders' meeting, MBBank set a target of consolidated pre-tax profit of VND 31,712 billion, an increase of about 10% compared to the level achieved in 2024.

The bank also plans to increase total assets to nearly VND1.37 trillion (an increase of 21.2%), capital mobilization to increase by 23.3%, and credit to increase by about 23.7% depending on the limit granted by the State Bank. The bad debt ratio is controlled below 1.7%.

MB also aims to expand its customer base to 34-35 million people in 2025, aiming for 40 million customers in 2029. Along with that, MB also plans to contribute a maximum of VND5,000 billion to MBV (formerly OceanBank) - an organization that is being forced to transfer. MB expects MBV to record positive profits this year.

The bank also approved a plan to buy back 100 million treasury shares, equivalent to about 1.6% of charter capital, to protect shareholders' interests in the context of volatile stock markets. The transaction is expected to be carried out through order matching on the stock exchange in 2025 or 2026, using capital from surplus capital.

In terms of actual implementation, in the first quarter of 2025, the Military Commercial Joint Stock Bank (MB) recorded quite impressive business results, achieving a consolidated pre-tax profit of VND 8,386 billion, an increase of 45% over the same period in 2024. The main driving force for this growth came from net interest income of VND 11,692 billion, an increase of 29%, along with the improvement in non-credit segments such as services (VND 1,235 billion, up 40%), foreign exchange trading (VND 537 billion, up 16%) and securities investment (VND 509 billion, 2.3 times higher than the same period).

MB's total consolidated assets as of the end of the first quarter reached more than VND 1,150 trillion, up 2.5% compared to the end of 2024. Consolidated customer loans reached nearly VND 798,000 billion, up 2.7%, while customer deposits reached more than VND 723,200 billion. However, the bad debt ratio increased slightly from 1.62% to 1.84%, with total bad debt increasing from VND 12,586 billion to VND 14,681 billion.

However, asset quality shows signs of being more cautious. The bad debt ratio increased slightly from 1.62% to 1.84% by the end of the first quarter of 2025, with total bad debt increasing from VND12,586 billion at the end of 2024 to VND14,681 billion.

In addition to positive achievements, MBB also has some limitations that need to be overcome, such as the bad debt ratio tends to increase slightly, requiring the bank to further improve credit risk management. At the same time, in the context of increasingly fierce competition in the banking market and the need for constant innovation, MBB needs to continue to invest heavily in technology and human resources to maintain sustainable development./.

Source: https://baodaknong.vn/mb-du-kien-phat-hanh-nhung-lo-trai-phieu-3-khong-4-khong-253810.html