Military Commercial (MBB) Q1 2021 earnings summary

Executive summary

• Q1 operating income rose 45% YoY to VND 9,193bn; profit before tax increased 108.6% to VND 4,580bn and net profit rose 105.6% to VND 3,666bn.

• Digital channels handled 84.4% of transactions after nearly 2 million additional users and 90 million electronic transactions, 3x the 2020 level.

• Total assets reached VND 510,957bn, up 26% YoY; customer loans plus corporate bonds grew 8.6% from year-end 2020.

Financial highlights

• Net interest income rose 26.8% YoY to VND 5,952bn; net fee income increased 43.1% to VND 1,066bn.

• Other income increased 118.2% YoY to VND 2,175bn; pre-provision profit rose 49.0% to VND 6,389bn.

• Operating expenses increased 36.7% YoY to VND 2,804bn, while the cost-income ratio improved to 30.5% from 32.3%.

• Provision expense declined 13.6% YoY to VND 1,809bn; profit growth reflected higher operating income and lower provisions.

Outlook and guidance

• Priorities include retail and profitable customer segments, deeper relationships, digital and transaction banking, and stronger fee income from cards, payments and bancassurance.

• SME plans focus on packaged products, becoming the main bank, increasing CASA and fee income, and offering cash-flow management services.

• Planned investment includes modern IT, automation and software solutions; risk management initiatives include implementing Basel standards.