MB posts stellar performance in H1
MB posts stellar performance in H1
Military Commercial Joint Stock Bank (MB Bank) has affirmed its position by recording robust business results in the first half of 2023, maintaining momentum in the execution of its strategic plan.
The Q2 consolidated financial report disclosed that the bank, inclusive of its subsidiaries within the MB Group, upheld consistent business performance.
The bank's total assets since the start of the year swelled by 10.7 per cent, scaling up to $33.58 billion. Further, the pre-tax profit of MB Bank grew 11.8 per cent on-year, reaching $498 million, while the consolidated pre-tax profit recorded a 7.1 per cent uplift, touching $530.63 million.
Customer deposits experienced a 7.2 per cent ascent, compared to the same period last year, attaining approximately $19.8 billion. Concurrently, MB Bank's current account saving account (CASA) ratio remained at the forefront among joint-stock commercial banks at 37.06 per cent, indicative of a strong and stable deposit base.
Credit growth has been a notable highlight in MB’s H1 performance, with consolidated outstanding loans growing 10.6 per cent from the start of the year.
The bank has demonstrated a discerning credit strategy, focusing on propitious customer groups, supporting business production, and prioritising sectors in alignment with government policy to stimulate economic growth, while ensuring the efficacy and security of credit operations.
Between March and June 2023, MB championed customer support, offering preferential lending packages specifically for businesses with revenues under $4.17 million, with a 2 per cent interest reduction on online loans via the BIZ MBBank platform.
Despite the aggressive lending strategy, the bank has kept its non-performing loans (NPLs) in check. Concerning credit quality, the NPL ratio of MB has marginally increased compared to the end of 2022.
The consolidated NPL ratio stands at 1.33 per cent, inclusive of economic organisation bonds, whereas the standalone figure for the bank alone is 1.12 per cent, a substantial reduction from the 1.76 per cent recorded at the end of Q1.
This outcome is attributed to MB's strategic foresight and preparedness. They have been prudent in making adequate provisions for some restructured loans that encountered difficulties during the pandemic period, laying the groundwork for tackling any potential adversities.
Regarding operational efficiency, the Cost-to-Income Ratio marked a slight uptick compared to the same period in 2022, standing at 32.79 per cent against the previous 32.63 per cent.
MB continues its quest to become a digital financial leader, deploying technology across its operations, including the granting of credit limits, processing of international money transfers, and digitally signing credit agreements. As a testament to this digital transformation, the bank has attracted close to 23.5 million individual customers and around 300,000 corporate clients as of June 2023.
As it strides further into digital banking via its MBBank app and BIZ MBBank platform, the bank also expands its service network through the MB SmartBank system, a leading-edge automatic banking service, providing a more comprehensive customer experience.
MB’s leadership projects a total asset growth of over 20 per cent for the latter half of 2023, underpinned by a robust credit growth strategy. The bank is poised to bolster its guarantee products, targeting a 120 per cent growth in commercial finance, and a surge of over 150 per cent in its bancassurance and credit card segments. MB remains committed to its ambitious target of engaging 30 million customers from 2022 to 2026.
