Profit target over 31,000 billion

On the morning of April 26, the atmosphere at the National Convention Center where the Military Commercial Joint Stock Bank (MB) held its 2025 Annual General Meeting of Shareholders became more vibrant and bustling than ever. Thousands of shareholders lined up to check-in very early, while logistics, technical staff, and coordinators were busy ensuring all operations ran smoothly for an event that is expected to be the largest in terms of shareholder scale in the financial industry this year.

As of 10:30 a.m. the same day, the number of shareholders checking in had reached nearly 4,400 people, an unprecedented number in the history of MB's General Meeting of Shareholders, even surpassing many banks in the same industry.

At the meeting, Chairman of the Board of Directors of MB - Mr. Luu Trung Thai frankly acknowledged: 2024 is a year when Vietnam's economy recovers better than expected, GDP and credit growth both meet the plan, while institutional reforms such as the Land Law, Housing Law... have been passed, creating a positive foundation for credit institutions to reposition their strategies. On that foundation, MB closed the 2024 fiscal year with many impressive indicators: total assets exceeded 1.1 million billion VND for the first time; pre-tax profit ranked in the top 4 largest banks in Vietnam; and officially received the transfer of OceanBank (now MBV) within the framework of the restructuring project of weak credit institutions.

In particular, MB said it is maintaining an investment of over 100 million USD per year in digital technology, with a workforce of up to 2,500 employees specializing in the fields of data, technology and digital transformation, a number that shows the level of commitment to the leading digital banking strategy. This is also the foundation for MB to set a series of ambitious goals for 2025.

Specifically, the bank submitted to shareholders a consolidated pre-tax profit plan of over VND31,000 billion, an increase of nearly 10% compared to 2024. Total assets are expected to reach nearly VND1,370 trillion, an increase of 21.2%, while capital mobilization and credit are expected to increase by 23.3% and 23.7%, respectively, depending on the limit allocated by the State Bank.

In 2025, MB aims to maintain a bad debt ratio below 1.7% and a capital adequacy ratio (CAR) in compliance with Basel II standards at a minimum of 9%. Efficiency indicators such as: return on equity (ROE) at 20 - 22%, return on assets (ROA) around 2%, cost-income ratio (CIR) below 30% continue to be in the top of the banking system.

Dividend payment of 35% in cash and shares

Not only "internalizing" through organic growth, MB also made many strategic marks through expansion and restructuring plans. The bank submitted to shareholders a plan to increase charter capital by more than VND 20,346 billion, from VND 61,022 billion to VND 81,368 billion, equivalent to an increase of 33.3%. Of which, a part was implemented from the unimplemented capital increase plan of 2024, the rest was issued shares to pay dividends and private offerings.

Notably, this year's dividend will be paid at a total rate of 35%, of which 3% is in cash and 32% is in stocks, a very high rate in the context of many banks tightening their dividend plans to maintain their equity.

In addition to “sharing the results” with shareholders, MB also plans to buy back 100 million shares as treasury shares, equivalent to 1.6% of charter capital. The bank’s leaders said the goal of the buyback is to protect shareholders’ rights and share value from market fluctuations, and can be used as a restructuring tool or to benefit existing shareholders of the bank. The capital source for implementation is from the surplus of equity capital, the purchase method is order matching on the floor in 2025 - 2026, depending on the time approved by the management agency.

Another highlight of this congress is the plan to restructure the legal and capital of its member units. MB is calculating changes in the ownership ratio of MBCambodia and Mcredit, two subsidiaries operating in the banking and consumer finance sectors, towards transforming their operating models, opening up to strategic partners or IPOs. Regarding Mcredit, MB assesses that listing this company will open up new growth space, diversify capital sources and enhance transparency. Meanwhile, MB Cambodia will be converted to a legal form as required by Cambodian law, and is being invited to cooperate with foreign investors.

As for MBV, the new name of OceanBank after being taken over by MB under the mandatory transfer, the bank's leaders said that they are in the process of comprehensive restructuring with the goal of "returning to profit this year". MB will contribute a maximum of VND5,000 billion to MBV, based on the plan approved by the State Bank. In the future, MBV can be converted from a single-member bank to a joint-stock commercial bank, a joint-venture bank or even merged back into MB, depending on the optimal plan and in accordance with the law.

At the same time, MB also announced plans to expand its international market. Specifically, the bank will establish a subsidiary bank in Laos (converted from an existing branch), and at the same time promote the opening of branches and representative offices in potential financial centers such as Korea, Japan, China, Singapore, Taiwan, etc. to gradually expand its network of operations to the Asia-Pacific region.

Thuy Linh

Source: https://congthuong.vn/mb-lap-ngan-hang-con-tai-lao-mo-rong-ra-chau-a-384956.html