Military Commercial (MBB) Q3 2023 earnings summary

Executive summary

• 9M operating income was VND 35.556tn, PBT VND 20.019tn and consolidated net profit VND 16.009tn, up 5%, 10% and 10% YoY, respectively.

• Q3 consolidated PBT rose to VND 7.284tn from VND 6.296tn YoY; 9M profit attributable to owners reached VND 15.690tn.

• Total assets reached VND 815.881tn at Sep. 30, 2023, versus VND 728.532tn at Dec. 31, 2022.

Financial highlights

• 9M NII increased 11.8% to VND 29.520tn; NFI declined 9.7% to VND 2.630tn and other income fell 24.9% to VND 3.405tn.

• Q3 net interest income was VND 9.812tn versus VND 9.039tn YoY; operating income was VND 12.065tn versus VND 10.986tn.

• 9M operating expenses declined 1% and pre-provision profit increased 8% YoY; provision expense rose 1% in one reported comparison, while Q3 credit-risk provisions were VND 1.447tn versus VND 0.962tn.

• Interest expense rose 109.7% YoY to VND 22.626tn, partly offsetting higher loan and bond income.

Segment performance

• Banking contributed 92% of PBT and affiliates 8%; 9M banking segment PBT was VND 18.888tn, with securities at VND 511.9bn, insurance at VND 258.4bn and debt management/asset recovery at VND 360.2bn.

• Settlement and cash services income rose 65% YoY to VND 2.015tn; insurance services fell 17%, advisory services 89% and securities brokerage 24%.

• 9M geographic PBT was VND 13.793tn in the North, VND 4.921tn in the South, VND 1.285tn in Central regions and VND 19.9bn in other regions.