Military Commercial (MBB) Q2 2021 earnings summary

Executive summary

• 1H21 operating income reached VND 18,117bn, up 40.3% YoY; PBT was VND 7,986bn, up 56.0%, and net profit was VND 6,397bn, up 53.3%.

• NII and fee income grew, supporting diversified revenue; consolidated NPL was 0.8% and bank-only NPL was 0.6%.

Financial highlights

• NII rose 34.3% to VND 12,515bn; net fee income rose 24.0% to VND 2,096bn, while other income increased 75.3% to VND 3,507bn.

• Pre-provision profit increased 45.1% to VND 12,227bn; operating expenses rose 31.4% to VND 5,891bn and provisions rose 28.1% to VND 4,240bn.

• Total assets were VND 523,334bn, up 24.1% YoY; customer loans were VND 325,160bn, up 26.5%.

Outlook and guidance

• Business plans include scenarios for a prolonged pandemic, continued cost management and investment capacity to support growth in subsequent quarters.

• Lending strategy prioritizes retail, group cross-selling and digital products; customer reviews and loan restructuring respond to pandemic impacts.