Military Commercial (MBB) Q1 2022 earnings summary

Executive summary

• Q1 operating income reached VND 11.633tn, up 26.5% YoY; PBT was VND 5,909,673m, up 29.04%, and net profit was VND 4,726,395m, including VND 4,546,209m attributable to shareholders.

• Net interest income was VND 8,385,485m, up 40.9% YoY; non-interest income contributed 28% of total income.

• Consolidated NPL was 0.99%; CAR under Circular 41 was 10.7%.

Financial highlights

• Total assets were VND 649,039,794m at 31 March 2022; customer loans were VND 405.222tn, up 27.2% YoY.

• Operating income was VND 11,633,066m vs. VND 9,192,864m YoY; operating expenses were VND 3,597,881m vs. VND 2,803,949m.

• Pre-provision profit rose 25.8% YoY to VND 8.035tn; allowance and provision expense was VND 2,125,512m vs. VND 1,809,057m.

• Net profit after tax was VND 4,726,395m vs. VND 3,666,332m; income tax expense was VND 1,183,231m vs. VND 913,526m.

Outlook and guidance

• Continued cost management and investment capacity were planned to support growth in subsequent quarters amid a potentially prolonged pandemic.

• Lending priorities included retail, cross-selling across affiliates, and digital products; customer reviews and restructuring plans were intended to address pandemic impacts.

• Asset quality was to remain strictly managed in 2022, with NPL below the 2% AGM commitment and adequate provisioning maintained.