Profits for the first nine months reached 72% of the annual target.

In the first nine months of the year, MSB recorded consolidated pre-tax profit of over VND 4,900 billion, achieving 72% of the annual plan.

The bank's nine-month business performance growth was driven by net interest income. Specifically, net interest income reached nearly VND 7,105 billion, a 4% increase year-on-year, bringing the consolidated total operating income (TOI) for the nine 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 and foreign exchange, demonstrating the effectiveness of revenue diversification and a shift towards more sustainable banking operations.

At the end of the first nine months, the bank's total assets reached over VND 300,700 billion, an increase of nearly 13% compared to the end of 2023. The driving force behind this increase in total assets, besides credit growth, is the investment portfolio, which reached nearly VND 62,300 billion, a 64% increase compared to December 31, 2023. This investment portfolio mainly consists of government bonds – an increase of approximately VND 20,000 billion – and securities of credit institutions – an increase of nearly VND 5,000 billion.

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Credit growth is favorable.

MSB's individual credit growth increased by over 15.1% year-on-year, higher than the system-wide average growth of 9% by the end of September and over 3% higher than the previous quarter. The outstanding credit balance recorded healthy growth, consistent with the credit limit granted by the State Bank of Vietnam, aiming towards the 20% growth target set by MSB in its initial plan for the year.

Specifically, customer loans as of September 30, 2024, reached over VND 170,600 billion, mainly allocated to sectors such as processing and manufacturing, machinery manufacturing, exports, supporting industries, and high-tech enterprises. This is a result of diversified and flexible loan products, along with simple and fast procedures, attracting a high-quality customer base. In addition to these sectors, industries aiming for sustainable development and green finance are a priority for the bank to become a driving force for credit growth in the coming period.

Furthermore, customer deposits in the third quarter continued the steady growth trend from previous quarters, reaching nearly VND 148,500 billion, an increase of over 12% compared to the beginning of the year. This was driven by individual deposits at VND 79,470 billion, a 5% increase compared to the beginning of the year. Demand deposits (CASA) reached nearly VND 36,000 billion. On the other hand, time 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 to total deposits (% CASA) in the third quarter decreased slightly to 24.23%, consistent with market trends as deposit interest rates showed signs of increasing again.

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The capital adequacy ratio (CAR) reached 12.36%, and the non-performing loan ratio decreased to 2.01%.

The bank's capital base remains tightly managed, with the loan-to-deposit ratio (LDR) at 74.68%, and the ratio of short-term funding to medium- and long-term loans (MTLT) controlled at 29.38%, effectively meeting regulatory requirements while ensuring a balance between profitability and risk management. The consolidated capital adequacy ratio (CAR) continues to be maintained at 12.36%, a relatively high level compared to the minimum requirement of 8% under Basel II.

Asset quality remains under control and aligns with the bank's debt resolution plan. Thanks to rigorous risk management measures, MSB's non-performing loan ratio continued to decrease from 2.13% in the previous quarter to 2.01%. Most loans at MSB are secured by high-quality collateral, minimizing the risk of capital loss. To further improve asset quality and create a solid buffer, the bank has also proactively set aside over VND 1,600 billion in risk provisions, ready to respond to market impacts.

Capital increase to 26,000 billion VND completed.

Recently, MSB completed an increase in its charter capital to VND 26,000 billion through the issuance of shares to pay dividends at a rate of 30%. The number of additional shares issued was 600 million. MSB also carried out a supplementary listing of the newly issued shares, bringing the total number of outstanding shares to 2.6 billion. The new charter capital is expected to help MSB meet the requirements for business development and risk management, and enhance the bank's competitive position in terms of scale.

Furthermore, with a sustainable development strategy aimed at financial inclusion and bringing banking services to a wider range of customers and users, in the third quarter, MSB signed cooperation agreements with many reputable organizations, especially in the fields of healthcare and education .

Notably, in early July, the bank and the Vietnam General Confederation of Labor signed a cooperation agreement 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 collaborated to implement the MSBPay On POS payment solution, allowing patients to make payments easily anytime and anywhere without needing to open a bank account. MSB also signed a cooperation agreement with Dai Nam University, providing digital products and services along with many attractive incentives for students and staff, and sponsoring core banking software to support learning and practice at the university…

Based on the results achieved so far, MSB is confident that it will complete the business plan as presented to and approved by the General Shareholders' Meeting in April.

Phuong Dung