Military Commercial (MBB) Q2 2023 earnings summary

Executive summary

• Q2.23 total operating income (TOI) reached VND 23.49tn, up 3% YoY; PBT rose 7% to VND 12.735tn.

• Net profit was VND 10.188tn, up 7% YoY; pre-provision profit increased 3% to VND 15.787tn.

Financial highlights

• Net interest income (NII) grew 14% YoY to VND 19.709tn; net fee income fell 27% to VND 1.55tn.

• Interest expense rose 123% YoY to VND 15.115tn, while interest income increased 31% to VND 34.824tn.

• Provision expense declined 13% YoY to VND 3.052tn; operating expense increased 2% to VND 7.703tn.

• TOI mix: NII contributed 84% and non-interest income 14%; non-interest income fell 27% YoY.

Outlook and guidance

• Business plans include scenarios for a challenged economy, continued cost management and investment capacity to support growth in following quarters.

• Lending strategy emphasizes retail, cross-selling across affiliates and digital products.

• Customer exposures are being reviewed and assessed, with restructuring plans and tailored customer policies applied as appropriate.