Military Commercial Joint Stock Bank (MB)’s financial statements of the third quarter of 2019 show positive results in the context of the economy and banking industry under the Covid-19 pandemic’s impact.
As of September 30th, 2020, the total assets of the consolidated bank reached more than VND 427 trillion, increasing by 3.8% compared to the end of 2019 and by 7.5% year over year.
In the third quarter of 2020 alone, MB’s net revenue from operating activities reached VND 6,735 billion, which was a 6.1% year-over-year increase. The profit before tax reached VND 3,015 billion, up 10% over the same period in 2019.
For the first 9 months of 2020, MB's net revenue was nearly VND 19,650 billion, increasing by 9.4% over the same period last year. The consolidated pre-tax profit reached VND 8,134 billion, up 6.8% year over year.
The after-tax of the bank increased by 7.4% from VND 6,142 billion in 2019 to 6,596 in 2020 (the two figures were calculated in the first 9 months of each year).
The credit balance reached more than VND 296 trillion, up 11.8% from the beginning of the year and up 16.2% on a year-over-year basis. In particular, the loans to customers were nearly VND 264 trillion, increasing by 6.7% compared to the beginning of the year.
Regarding credit quality, at the end of the third quarter of 2020, the total non-performing loans (NPL) were VND 4,036 billion, up 9% year over year. However, due to high credit growth, the NPL ratio was only 1.5% while that of the same period last year was 1.54%.
In addition, the bank had a risk reserve fund of nearly VND 4,800 billion, which was an increase of 26.1% year over year. Thus, the NPL coverage ratio reached 118.86%, while that of the same period last year was 102.73%. This made MB one of the banks with the highest NPL coverage ratio in the banking industry.
The capital mobilization of the consolidated bank in 9 months reached nearly VND 298 trillion, increasing by 1.9% compared to the beginning of the year and by 9.6% compared to the same period last year. The capital mobilization of the parent bank alone was more than VND 301 trillion, up 2.2% from the beginning of the year and up 10.3% year over year. Regarding deposits, the bank saw a decrease in deposits of economic institutions while that of individuals surged 16% compared to the beginning of the year. The certificates of deposit into the bank also sharply increased by 45.8% and 63.5% compared to the beginning of the year and the same period last year, respectively.
As seen from that, despite the plan of expected 10% profits decrease this year due to the impact of the Covid-19 pandemic, MB still has better growth than expected when the profits of the second and third quarters both had an impressive increase.
The bank also recently closed the list to pay dividends to shareholders at a rate of 15% so that its charter capital was increased to nearly VND 28,000 billion. Currently, the equity is VND 48,253 billion, in which the charter capital is VND 24,370 billion.
The digital transformation of MB has also seen flourishment. The number of customers transacting on the MBBank App has reached over 2.2 million users. The bank's app used to be one of the most downloaded apps on the App Store.
MB is one of the first banks to use an online identification application (eKYC) that allows customers to open an online account without going to the bank to complete identification procedures. In addition, the bank also allows electronic signatures as well as remote approvals in verification. Currently, most internal activities of MB are automatically operated and about 80% of MB's transactions are conducted on digital channels.
Compiled by Vietnam Credit
