MSB announces pre-tax profit of VND5.168 trillion in 2021

20-Jan-2022 Intellasia | VnEconomy | 5:02 AM Print This Post

Maritime Commercial Joint Stock Bank (MSB) has announced its business results in 2021 with a pre-tax profit of 5.168 trillion dong, nearly doubling that of 2020.

Specifically, the credit growth of MSB reached more than 20 percent according to the target assigned by the State Bank of Vietnam (SBV). Customer deposits grew by more than eight percent to 94.616 trillion dong, in which the Current Account Savings Account (CASA) accounted for about 36%.

As a result, MSB’s net interest income was 6.112 trillion dong, up by nearly 30 percent over the same period of 2020, accounting for more than 58 percent of the bank’s total net income.

In addition, the non-interest income increased by 92 percent compared to 2020 with a strong contribution from the growth in revenue from service acitivites, foreign exchange trading and capital contributions and share purchases. Notably, thanks to putting Tnex digital bank into operation for nearly two years, the bank’s costs to income significantly dropped.

With these above results, after conducting debt restructuring for customers affecting by Covid-19 according to Circular 01 and Circular 14 of the SBV and has made full provisions, MSB still reported a profit of 5.168 trillion dong, nearly 58 percent higher than the target of 3.280 trillion dong approved by the general Meeting of Shareholders at the beginning of the year.

As of December 31st 2021, the total assets of MSB stood at 203.7 trillion dong, up by more than 15 percent compared to the beginning of the year. The bank’s charter capital increased by 30 percent to 15.275 trillion dong. MSB’s Capital Adequacy Ratio (CAR) according to separate data was 11.24%. The bad debt ratio continued to fall to about 1.15%, the lowest in recent years.

According to MSB’s leaders, in 2022, the bank targets a pre-tax profit of 6.8 trillion dong, credit growth of over 20 percent depending on the approval of the SBV, and total assets of 230 trillion dong.

At the same time, MSB will also focus on digital transformation strategy, digitising the existing bank with the goal of being in the group of banks with the highest ratio of CASA to total deposits in 2022.

Currently, MSB has signed a cooperation package with its consulting partner BCG to carry out a digital transformation strategy project for the period of 2021 2025. After successfully applying eKYC in account opening, the bank will pilot online lending with simpler procedures. Moreover, the project to renew the core banking has also started to provide the foundation for MSB’s digital transformation.

In the stock market, after being listed at the reference price of 15,000 dong per share on December 23rd 2020, so far, MSB’s market price has been growing relatively well. MSB’s stock price is current around 26,300 dong per share (adjusted after the dividend payment at 30%). The market capitalisation, accordingly, is about 43.6 trillion dong.

 

Category: Finance, Vietnam

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