Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) has just announced documents for the General Meeting of Shareholders on April 21, thereby submitting for approval many important plans.
In terms of business results, by the end of 2022, MSB's total assets reached VND 212,776 billion. Deposits mobilized from customers recorded over VND 117,000 billion, an increase of about 24% compared to 2021. Customer loans reached over VND 120,600 billion, an increase of nearly 19% compared to the previous year.
Credit growth reached 16.35% in line with the target set by the State Bank, with the credit portfolio being flexibly shifted to minimize risks and increase efficiency.
2022 also witnessed many sharp increases in deposit interest rates. Based on a flexible deposit mobilization mechanism combined with diverse, convenient and value-added products, the balance of non-term deposits at banks continued to grow in 2022.
The rate of non-term deposits will reach 31.16% as of December 31, 2022, with an annual average of 36%, among the highest in the market.
The bank's total operating income (TOI) reached nearly VND10,700 billion, with good growth recorded from foreign exchange trading activities. Net profit in this segment increased 2.6 times compared to 2021, reaching over VND1,000 billion.
Net interest income reached over VND 8,300 billion, up 34% over the previous year with a net interest margin that was effective compared to the general market level, at 4.5%.
At the end of the fiscal year, MSB's pre-tax profit reached more than VND 5,787 billion, an increase of approximately 14% compared to 2021. This profit level reached 85% of the annual plan, as the FCCOM sale plan was directly affected by the volatile market context. These unfavorable factors affected the negotiation process of the deal.
Based on an overall assessment of the situation and to ensure the highest benefits, MSB will continue to implement this plan when market conditions are more favorable in 2023-2024.
With the volatile market situation, the impact of interest rate trends and the requirement to improve risk management from the management agency, the bank will submit to the General Meeting of Shareholders to maintain the current equity and charter capital to create resources for business activities. This plan is also consistent with MSB's current potential when it has an effective capital buffer after 2 consecutive years of dividend payment and bonus share issuance at a rate of 30%.
In particular, with the strategic orientation of digital development, this will be the driving force for MSB to invest more seriously and strongly in technology projects, aiming to optimize costs and increase profits in the future.
Regarding safety indicators, the bank recorded a debt-to-deposit ratio (separate LDR) of 68.77% (compared to the limit of 85%) and the ratio of short-term capital for medium- and long-term lending of the banking sector was controlled at 23.57% (compared to the requirement of 37%).
The consolidated capital adequacy ratio (CAR) according to Circular 41 is 12.33%. The bad debt ratio (NPL in the banking sector) according to Circular 11/NHNN is at 1.21%.
Entering 2023, MSB sets a cautious business plan with total assets of VND 230,000 billion; pre-tax profit of VND 6,300 billion; expected credit balance of VND 141,700 billion, depending on the credit growth rate granted by the State Bank according to the management policy of each period; bad debt maintained below 3% according to regulations.
Sharing about this plan, the bank representative said: "2023 is still a difficult year for the economy , the positive scenario is still quite reserved, MSB sets the priority goal of sustainable development, focusing on strong governance, continuing to increase the digital content in products and services, maintaining its position as a bank that understands customers and operates effectively in Vietnam".
Also at the Congress, MSB will present to the General Meeting of Shareholders a plan to merge with another bank. If the M&A is successful, both parties can exploit each other's advantages, increase market share, take advantage of customer relationships, thereby improving competitiveness and creating new business opportunities.
“Based on the previous merger experience with MDB, we hope that this plan will receive consensus from the General Meeting of Shareholders, opening up a new future for the bank. Merger is not simply a matter of adding value. With a carefully researched plan to maximize advantages, MSB’s value in the future will be greater and of better quality than that arithmetic addition,” shared a representative of MSB .
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