MB Group eyes $5 bln revenue by 2026

Military Commercial Joint Stock Bank (MB) held the online analyst meeting on June 22 to provide an update on its positive operation and business results.

By the end of Q2, MB achieved total consolidated assets of more than VND523 trillion, increasing by 5.65 percent compared to the end of 2020. Total operating income in the first half of the year was VND18,117 million, increasing by 40 percent compared to the same period last year.

Total consolidated profit before tax in the first six months of 2021 reached VND7,968 million, a remarkable increase of 56 percent compared to the same period last year.

MB also enjoyed top business performance in the period with a return on asset (ROA) ratio of 2.48 percent and a return on equity (ROE) ratio of 23.28 percent.

"These outstanding results are a testament to MB’s effective business strategy with a focus on digital transformation," a spokesperson stated.

Within the first six months of the year, MB has implemented a series of innovative products, including payments with a VietQR code, personalized bank account number, account number as well as phone number.

MB has also attracted around 2.5 million new customers.

Accelerating digital transformation is key to MB Group’s strategic goals. Photo by MB Group.

The number of digital transactions nearly tripled that of the same period last year. Transaction value reached VND1,700 trillion, an increase of more than five times compared to the same period in 2020.

The bank committed to making an annual investment of $50 million in technology infrastructure over the past three years and at least in the next five years.

At the online event, Vice Chairman of the Board of Directors cum CEO Luu Trung Thai emphasized that MB is determined to become the most convenient bank in Vietnam.

"MB will continue to affirm its solid position in the top five, while striving to fulfill more ambitious targets in the new strategic period, consolidating the financial group model on a digital basis in order to strengthen the connection among customers, services and products of MB and its subsidiaries," he said.

In addition to MB's solid performance, in the first six months of the year, its six subsidiaries also achieved outstanding growth in business scale. Military Insurance Joint Stock Corporation (MIC) jumped up one rank to enter the industry Top 5, while MB Ageas Life Insurance Company Limited rose one rank to enter the Top 11 agency channel APE (with 2.5 percent of the market share), accompanied by a growth rate of 266 percent - the highest in the market.

"The subsidiaries’ contribution to MB Group’s total profit accounted for 13.2 percent, which is a strong improvement compared to five years ago," said Thai.

Director of Research and Corporate Development Dam Nhan Duc stressed: "In the 2017-2021 phase, MB has consistently achieved a faster growth rate compared to the average of the seven largest Vietnamese commercial banks and the top three banks of each country in the region and the world."

The revenue and profit of MB Group by the end of 2021 are forecast to triple compared to 2016.