9-month profit reached 72% of yearly plan

In the first 9 months of the year, MSB recorded consolidated pre-tax profit of more than VND 4,900 billion, completing 72% of the year plan.

The bank's 9-month business results growth was recorded thanks to net interest income. Accordingly, net interest income reached nearly VND 7,105 billion, up 4% over the same period, bringing the consolidated total operating income (TOI) after 9 months to nearly VND 9,970 billion. Non-interest income accounted for approximately 29% of total income with contributions from segments such as credit cards, foreign exchange, etc., showing the effectiveness in diversifying revenue sources, aiming to transform banking operations towards a more sustainable direction.

At the end of 9 months, the bank's total assets recorded more than VND 300,700 billion, an increase of nearly 13% compared to the end of 2023. The driving force for the increase in total assets, in addition to credit growth, can be mentioned as investment securities with nearly VND 62,300 billion, an increase of 64% compared to December 31, 2023. This investment portfolio is mainly government bonds - an increase of about VND 20,000 billion and securities of credit institutions - an increase of nearly VND 5,000 billion.

MSb 28.jpg

Credit growth is positive.

MSB's individual credit growth increased by more than 15.1% compared to the beginning of the year, higher than the average growth rate of the whole system of 9% by the end of September and increased by more than 3% compared to the previous quarter. The outstanding credit balance recorded healthy growth, in line with the credit limit granted by the State Bank, aiming at the growth target of 20% as MSB stated in the plan at the beginning of the year.

As for customer loans as of September 30, 2024, they reached over VND 170,600 billion, mainly allocated to a number of sectors such as manufacturing, machinery manufacturing, export, supporting industries, and high-tech enterprises. This is the result of diversified and flexible loan products with simple and fast processes, attracting quality customers. In addition to these sectors, industries aiming for sustainable development and green finance are the bank's priorities to become the driving force for credit growth in the coming time.

Along with that, customer deposits in the third quarter continued the steady increase from previous quarters, bringing this index to nearly VND 148,500 billion, up more than 12% compared to the beginning of the year. This index was led by individual deposits with VND 79,470 billion, up 5% compared to the beginning of the year. The balance of demand deposits (CASA) reached nearly VND 36,000 billion. On the other hand, term deposits increased by nearly 16% from VND 97,230 billion on December 31, 2023 to nearly VND 112,500 billion at the end of the third quarter. Therefore, the ratio of demand deposits in total deposits (% CASA) in the third quarter decreased slightly to 24.23%, in line with the market trend when mobilization interest rates showed signs of increasing again.

MSB Bank 42.jpg

Capital adequacy ratio (CAR) reached 12.36%, bad debt ratio decreased to 2.01%

The bank's capital base is still tightly managed with the ratio of outstanding credit to total mobilized capital (LDR) reaching 74.68%, the ratio of short-term capital for medium and long-term loans (MTLT) is controlled at 29.38%, meeting the requirements of the management agency, while ensuring the balance between profitability and risk management. The consolidated capital adequacy ratio (CAR) continues to be maintained, reaching 12.36%, a fairly high level compared to the minimum requirement of 8% according to Basel II.

Asset quality is under control and in line with the bank's debt resolution plan. Thanks to strict risk management measures, MSB's bad debt ratio continued to decrease from 2.13% in the previous quarter to 2.01%. Most loans at MSB are secured by good quality collateral, helping to minimize the loss rate. In order to improve asset quality as well as create a solid buffer, the bank also proactively set aside more than VND 1,600 billion in risk provisions, ready to respond to market impacts.

Completed capital increase to 26,000 billion VND

Recently, MSB has completed increasing its charter capital to VND26,000 billion through the issuance of shares to pay dividends at a rate of 30%. The number of additional shares issued is 600 million shares. MSB has also listed additional shares, bringing the total number of outstanding shares to 2.6 billion shares. The new charter capital is expected to help MSB meet the requirements of business development as well as risk management, increasing the competitive position in terms of scale for the bank.

In addition, with the sustainable development strategy being built by the bank aiming at comprehensive finance, bringing banking services to many customer groups and users, in the third quarter, MSB signed cooperation agreements with many prestigious units, especially in the fields of healthcare and education and training.

Typically, in early July, the bank and the Vietnam General Confederation of Labor signed a Coordination Charter to provide effective financial solutions and practical benefits for union members and workers nationwide. On August 8, 2024, the bank and Children's Hospital 2 cooperated to deploy a payment solution via MSBPay On POS, helping patients not need to open a bank account but can make payments easily at any time and from anywhere. MSB also signed a cooperation agreement with Dai Nam University, providing digital products and services with many attractive incentives for students and staff of the school, and sponsoring corebanking software for the learning and practice process at the school...

From the results achieved, MSB believes it will complete the business plan as submitted to the General Meeting of Shareholders for approval in April.

Phuong Dung