Military Commercial (MBB) Q3 2022 earnings summary

Executive summary

• 9M22 operating income was VND 33.841tn, up 26.2% YoY; PBT reached VND 18.192tn, up 53.1%, and net profit was VND 14.555tn, up 52.9%.

• NII growth was the main earnings driver; ROE rose to 27.1%, while consolidated NPL stood at 1.0%.

Financial highlights

• 9M22 NII increased 38.7% YoY to VND 26.394tn; NFI declined 3.6% to VND 2.912tn and other income fell 4.8% to VND 4.536tn.

• Pre-provision profit rose 26.5% to VND 22.654tn; operating expenses increased 25.5% to VND 11.187tn, while provisions fell 25.9% to VND 4.462tn.

• 9M22 customer loans were VND 417.061tn, up 26.8% YoY; total assets reached VND 656.804tn, up 18.2%.

Outlook and guidance

• Retail lending, group cross-selling and digital products are strategic priorities; focus includes expanding customers and fee-generating activities.

• Asset quality is to remain strictly managed; the stated AGM commitment was to keep NPL below 2% in 2022.