Military Commercial (MBB) Q1 2023 earnings summary

Executive summary

• Operating income reached VND 11.93tn, up 2.6% YoY; PBT rose 10.2% to VND 6.51tn and net profit rose 10.2% to VND 5.21tn.

• NII grew 22% YoY, offsetting a 38% decline in net fee income; operating expenses fell 0.8% and provision expenses fell 13%.

Financial highlights

• NII increased to VND 10.23tn from VND 8.39tn; interest expense rose 118% to VND 7.16tn.

• Net fee income declined 38.3% to VND 689bn; other income fell 52.4% to VND 1.01tn.

• Pre-provision profit increased 4.1% to VND 8.36tn; provision expense decreased 13% to VND 1.85tn.

Outlook and guidance

• Plans include preparing business scenarios, managing costs and creating investment capacity to support growth in coming quarters.

• Lending strategy prioritizes retail, cross-selling across affiliates and digital products; asset quality and NPLs are to remain tightly managed in 2023.