MSB announces first 6-month business results

At the end of the first 6 months of the year, MSB's individual credit growth reached 12.41%, continuing to maintain the growth momentum from the previous quarter and being among the top in the industry. Customer loans reached over VND 166,000 billion. This is the result of the diversity and flexibility of loan products as well as the superiority of the digitalization process promoted by the bank to improve user experience.

The bank's total assets as of June 30, 2024 reached more than VND 295,500 billion, an increase of 10.69% compared to the end of 2023. In addition to growth in customer loans, the increase in total assets was strongly supported by the investment securities segment with an increase rate of over 40% compared to December 31, 2023, recording over VND 53,100 billion, of which about 66% came from government bond investment.

Along with the growth in credit scale, mobilization from customers and valuable papers of the consolidated bank increased by 15% and 64% respectively compared to the end of 2023, contributing to strengthening the balance sheet. In addition, the balance of demand deposits reached more than VND 40,500 billion, up 15.4% compared to the end of the previous year and maintained a flat trend compared to the VND 40,300 billion mark in the first quarter. At the end of 6 months, the CASA ratio in the total mobilized capital structure reached 26.71%, although slightly down compared to the previous quarter, it was still in the top group of the market, mainly due to the increase in term deposits. "CASA is still focused on by MSB as an advantage of the bank to minimize capital costs" - MSB representative shared.

Thanks to revenue diversification, consolidated total net income (TOI) reached VND 7,031 billion, up 10% over the same period in 2023. Of which, net interest income is still the main pillar with a contribution of more than VND 4,700 billion, up 8% over the first 6 months of 2023. Notably, net interest income from the bank's foreign exchange trading activities in the first half of the year achieved impressive growth, more than double that of the same period in 2023, thereby increasing the contribution ratio of non-interest income to total operating income to over 33.05%. This ratio improved significantly compared to 24.14% at the end of the first quarter, demonstrating the bank's efforts to balance operations towards more sustainable growth.

Positive income growth creates the premise for the bank to reduce its cost/income ratio (CIR) to 30.9% from 39.3% at the end of 2023 and 33.6% in the first quarter.

With steady growth in net interest income and total interest-earning assets, combined with control over capital costs and debt quality, MSB's net interest margin (NIM) at the end of the first half of the year reached 3.7% - maintaining an effective level in the current market context.

Halfway through 2024, MSB recorded consolidated pre-tax profit of nearly VND 3,690 billion, a slight increase of 4% over the same period last year, reaching 54% of the annual profit plan.

Regarding liquidity and capital, the capital base is tightly managed by the bank. Accordingly, the loan-to-deposit ratio (LDR) reached 72.57% (compared to the limit of 85%) and the ratio of short-term capital for medium- and long-term lending (MTLT) was controlled at 26.1% (compared to the requirement of 37%). The consolidated capital adequacy ratio (CAR) reached 12.13%, ensuring the requirements of the management agency. The individual non-performing loan (NPL) ratio according to Circular 11 was controlled at 2.13%, demonstrating the bank's efforts in controlling bad debt to strengthen the balance sheet against market impacts.

In addition, in the last quarter, MSB was approved by the State Bank to increase its charter capital through the issuance of shares to pay dividends at a rate of 30%. The increase in charter capital aims to strengthen its financial capacity, helping MSB expand and take advantage of new business opportunities. On July 25, the State Securities Commission also issued a document allowing MSB to pay dividends in these shares. With a dividend payment rate of 30%, MSB is one of the banks with the highest dividend payment this year. It is expected that the bank will complete the issuance in the third quarter. After the capital increase, the total number of outstanding shares is expected to be 2.6 billion shares, corresponding to a new charter capital of VND 26,000 billion.

With the motto of transparency and improving governance standards in recent years, MSB has been in the Top 10 best enterprises in the stock market nominated for IR Awards 2024 for the title of "Enterprise with the best IR activities of the year". This is an annual award since 2011 organized by Vietstock in collaboration with VAFE Association and FiLi Magazine. MSB surpassed 708 units in the "Information Disclosure Survey" round and 424 units in the "IR Awards Nomination" round to be honored with this title.

These are the bases for MSB to consolidate the foundation for stable and solid growth. At the same time, the bank will continue to increase investment in digital transformation of all products and services, human development, and upgrading the operating model to ensure the annual business plan as well as the development process in the coming years.