MB’s nine-month credit growth outpaces industry average by 80 per cent
MB’s nine-month credit growth outpaces industry average by 80 per cent
Military Commercial Joint Stock Bank (MB) has released its Q3/2024 financial results, highlighting a range of positive business indicators.
MB reaches 30 million customers amid digital transformation success
Through substantial investment in high-standard IT infrastructure and a compelling strategy to attract customers across a diverse digital ecosystem, MB has sustained steady growth in its customer base each year. As it approaches its 30th anniversary, the bank now proudly serves 30 million customers. In line with its comprehensive digital transformation, MB has supported 2.7 billion financial transactions via digital channels, achieving a digital conversion rate of 99.5 per cent.
MB has demonstrated leadership in technology adoption, becoming the first bank in Vietnam to implement facial recognition for transfer verification on the MBBank app. This advancement aligns with directives from the State Bank of Vietnam (SBV), which encourage secure and robust online and card-based payment solutions.
Further enhancing its customer experience, in late August, MB introduced a “Proxy Biometrics” feature, allowing customers facing difficulties updating biometric data to have family members assist from home, bypassing branch visits. This innovation reflects MB's commitment to supporting customers by providing advanced technology solutions that meet growing demands.
Sustained growth momentum
By the end of Q3, MB’s consolidated assets had reached $41.15 billion, marking an 8.9 per cent increase compared to 2023. Pre-tax profits across the group amounted to $829 million, an increase of 3.6 per cent on-year, with the bank itself recording a pre-tax profit of $801 million, a 6.2 per cent growth over the previous year.
Efficiency and stability metrics remained strong, with consolidated ROA and ROE at 2.24 per cent and 21.37 per cent, respectively. The bank alone achieved an ROA of 2.30 per cent and an ROE of 22.71 per cent, underscoring its effective asset management and commitment to enhancing shareholder value. Lending in the first nine months of 2024 grew by 13.5 per cent compared to 2023, a robust growth rate within the market. The bank’s customer loan balance reached $26.6 billion, increasing 15 per cent on-year, with a primary focus on sectors such as production, business, and supporting industries.
MB has maintained lending rates aligned with directives from the government and the SBV, prioritising access to credit and supporting business recovery to stimulate economic growth. To achieve this, the bank has reduced lending rates multiple times, by 0.5 to 1.45 per cent since 2023, easing borrowing costs for customers and encouraging expansion.
Responding swiftly to the extensive impact of Typhoon Yagi, MB introduced a $280 million preferential loan package, allocating around $200 million for businesses and $80 million for individual customers. This relief package aims to provide critical capital for businesses and individuals as they work to rebuild and recover. MB’s actions illustrate its role in supporting communities and bolstering economic resilience in the face of challenges.
MB’s 30-year milestone
Approaching its 30th anniversary, MB underscores its role as a key national contributor, increasing its contributions to the state budget to over $300 million in 2023, a 65 per cent rise from 2022. This places MB among the top three banks in budget contributions. For the first nine months of 2024, MB's group-wide contributions reached nearly $248 million, reflecting both the bank's steady business growth and its commitment to national development.
To mark this milestone, MB has focused on strategic initiatives across the organisation, a dedication recognised through prestigious awards, including “Sustainable Workplace” from the HR Asia Awards, “Outstanding Asia-Pacific Enterprise” from the Asia Pacific Enterprise Awards, and “Most Investor-Preferred Large-Cap IR firm” at the IR Awards. These honours underscore MB's progress and position in the market.
Aligned with its 2022-2026 strategic roadmap, MB is advancing digital transformation with the aim of evolving from a digital bank into a digital enterprise. This approach differentiates MB within the market, driving its growth ambitions and establishing a standard for innovation and digital leadership in the industry.
