MBBank targets profit growth of 6-8% this year

April 23, 2024 - 08:52
The bank's leadership is striving to achieve a profit of VNĐ30 trillion (US$1.2 billion), leveraging MB's large customer base.
An employee talks to a customer at an office of MBBank. — Photo mbbank.com.vn

HÀ NỘI — MBBank is pursuing the target of profit growth of 6-8 per cent despite the persistently difficult economic conditions, and has put forth this proposal at the recent General Meeting of Shareholders.

The bank's leadership is striving to achieve a profit of VNĐ30 trillion (US$1.2 billion), leveraging MBBank's large customer base, which currently stands at 26.5 million and is expected to reach 30 million by 2024.

"Having a large customer base has helped MBBank maintain a low cost of capital, with CASA (current account - savings account) ratio reaching 40 per cent in 2023. In 2024, we aim to maintain it at around 32 per cent. This advantage enables MBBank to sustain its operations and strive for accelerated growth throughout the year," Phạm Như Anh, CEO of MBBank, said at the meeting late last week.

Regarding the topics of customer experience, security and digitalisation for the large customer base, the CEO acknowledged that these have been prominent issues in the market recently.

He said that MBBank has already made significant investments in information technology and will continue to do so to ensure customers receive the best service experience. The lender also plans to implement biometric authentication for money transfers to enhance account management for customers.

The main challenges for the banking industry in 2024 include slow economic recovery and global uncertainties such as geopolitical conflicts and high inflation in the US, Anh said, adding that MBBank will optimise costs and operations to meet revenue and profit targets, with a continued focus on retail banking.

The bank recorded a consolidated profit before tax of over VNĐ26.3 trillion in 2023, a 15.7 per cent rise from 2022. The proposed dividend payout for 2023, approved by the shareholders, is 20 per cent, including 5 per cent in cash.

MBBank has set a target to increase its total assets by 13 per cent to nearly VNĐ1.1 trillion by the end of 2024. This would position the bank as the next institution to surpass the VNĐ1 trillion milestone after the Big 4 banks.

It also aims to generate at least 30 per cent of its revenue through digital channels, with a goal of reaching 50 per cent by 2026, while planning to integrate ESG principles into its long-term strategic objectives to promote sustainable development.

This year, MBBank's leadership plans to raise additional charter capital of nearly VNĐ8.6 trillion. This includes a stock dividend distribution of nearly VNĐ8 trillion and a private placement of 62 million shares, equivalent to a VNĐ620 billion increase in authorised capital. The implementation of these plans will take place between 2024 and the second quarter of 2025.

Previously, MBBank successfully completed a non-public offering of 73 million shares to its shareholders State Capital Investment Corporation (SCIC) and Viettel.

After completing the fundraising initiatives, MBBank's charter capital is expected to rise to over VNĐ61.6 trillion. — VNS