MB Chairman: "Strive to achieve a profit of 28,800 billion VND or higher"
Notably, MB's non-performing loans (NPL) have returned to below 2% and are tightly controlled at 1.64% (consolidated) and 1.42% (individual). Along with that, MB's credit quality has continuously improved. In terms of operating efficiency, although NII (net interest income) is flat compared to the same period in 2023 due to the relatively lower interest rate in the first 6 months of 2024 compared to the same period in 2023, and MB has proactively implemented interest rate support programs for customers according to the policies of the Government and the State Bank, MB's non-interest income (NFI) has grown impressively at 48% over the same period. Since then, TOI (total operating income) has grown by 11%, while costs and CIR are being effectively and optimally managed in the context of the economy facing a lot of inflation, MB's pre-tax profit is in the top 4 of the banking industry. MB's card activities have also recorded outstanding results. "After 4 years of implementing diverse models, MB's number of cards is currently leading the market. Spending revenue has increased sharply. This is the first period that MB has had such a strong acceleration and this number is expected to increase further in the following periods," said Ms. Thanh Nga. According to Ms. Nga, in the second quarter of 2024, MB's profit grew quite well compared to the first quarter, but the third quarter of 2024 has a rather cautious scenario with credit growth of about 12-13%. Ms. Nga said that since the end of April 2023, capital costs have started to increase, expected to increase slightly by 0.1-0.15% in the third quarter of 2024. At the same time, provision costs will also increase higher. Therefore, MB's profit in the third quarter of 2024 will fluctuate up/down by 6% compared to the second quarter results. MB's 2024 profit scenario remains as presented at the 2024 Annual General Meeting of Shareholders at VND 28,800 billion before tax, striving to increase business revenue sources. MB's Chairman of the Board of Directors, Mr. Luu Trung Thai, further assessed that in the last 6 months of 2024, MB is steadfast with 4 major issues: It is expected to maintain NIM for loans in the last 6 months of the year, tightly control capital costs; control credit quality, bad debt in the last 6 months of the year is controlled at least equal to the first 6 months of this year. The target of controlling consolidated bad debt is not more than 1.7%, with 100% bad debt provision. On that basis, credit demand is returning, MB's major business segments are expected to improve the scale of outstanding debt in the third quarter of 2024, the scale of fee collection and especially maintain the speed of bad debt recovery is maintained well. Therefore, according to the Chairman of MB, the Bank expects to achieve at least the target of pre-tax profit of VND 28,800 billion and possibly higher. Assessing the business context in the first 6 months of 2024, Mr. Dam Nhan Duc - Chief Economist of MB affirmed that "the most difficult period is over". Accordingly, the service and tourism sectors have recovered relatively strongly; the manufacturing sector has recovered positively, especially the FDI group, creating momentum for the economy in the last 6 months of 2024 and 2024 to develop more strongly. Source: https://baodautu.vn/chu-tich-mb-ky-vong-dat-muc-loi-nhuan-28800-ty-dong-hoac-cao-hon-d221698.html
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