The value of the collateral is more than three times the amount owed.
At the TMCP Armed Forces Bank investor conference on August 5th afternoon, Mr. Liu Chongtai, Chairman of the Board addressed investors' concerns about the debt of some large enterprises such as Novaland, Trung Nam Group, The Sun Group, Vingroup as well as the provisioning of this group's debts.
For customers of Trung Nam Group, which is known to be an investor in large renewable energy projects, the chairman said that its outstanding debt has been reduced by VND 2,000 billion this year.
"We only focused on loans for solar power projects, which are running well and have good electricity sales prices to ensure the flow of repayment. The project group is operating well and will be able to pay off MB's debt in the near future", Liu said.
Regarding the debt of Nova Group's customer group, Thai said that its outstanding debt has decreased by VND 1,500 billion from 2023 to date. Novaland Phan Thiet, Aqua City Copper and the Nova Tram project in Vung Tau.
The Novaland Phan Thiet project is showing quite positive signs and has no legal problems, it's just in the process of land valuation under the new Land Law. The Dragonfly The Aqua City project is being monitored and updated regularly by MB for completion of legal procedures. This process is well underway and one of the projects chosen by the Government as a point to remove difficulties for real estate projects, Thai said.
The chairman of MB confirmed that he did not see any problem with Nova's debt repayment flow this year, and at the same time expected two projects in Phan Thiet and Đồng Nai to be completed on business plan contents in 2025.
As for Sun Group's client group, Mr. Liu confirmed that there were no difficulties with the collateral as well as customer cash flow.
MB's current loan balance to Sun Group is mainly focused on tourism projects such as the Sun World Fansipan Legend or the Sun World Black Mountain project.
In addition, some of Sun Group's real estate projects are also financed by MB with capital but a small credit scale. The bank balances these two sources harmoniously so that customers can get through the difficult period of the property market.
"With Sun Group's customers, we have complete control in terms of quality", the chairman said.
Given the outstanding debt of Vingroup's client group, MB only prioritizes disbursements in projects that have full legal and final products.
The common denominator for these four large corporate clients is that the value of collateralized assets is always three times larger than the size of the loan balance, so we have strict project-by-project controls as well as ongoing attention", Thai told investors.
Defaulted 28 million customers, bad debt down to less than 2%.
By the end of June, MB's credit grew moderately at 9. 4% and increased steadily across segments.
Ms. Pham Thi Trung Ha, Deputy General Director of MB said that although the economy has made good steps but the bank assessed the cash flow of individual customers could not be restored as in previous years.
Regarding the asset quality of Mcredit Financial Company, Mr. Lưu Trung Thái said that this year its bad debt is more than 8%.
McCredit's business model is between installment and cash loans. MB is improving this model, while hoping that the quality of its operations will improve by the end of the year.
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Mr. Phan Phương Anh General Director of MBS said that the number of MB's customers is reaching top 1 market, total assets and debt-to-equity market share are among the top 4. MB Chief Financial Officer Nguyen Thi Thanh Nga said the profit before tax for the first half of the year reached VND 13. 428 billion, an increase of 5. 4% over the same period in 2023, even as reserve costs increased during the first half. MB's card operations also recorded outstanding results, with the number of MB cards now leading the market. |
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