Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) is set to convene its General Meeting of Shareholders on April 23 at its Hanoi Headquarters. The agenda includes presenting shareholders with the business targets for 2024 and a proposed stock dividend plan at a rate of 30%.
In outlining its objectives for 2024, MSB aims to achieve total assets of VND 280,000 billion, marking a 5% increase from the previous year. Capital mobilization through market I and bond issuances is projected to reach VND 178,900 billion, reflecting a substantial 27% surge compared to the preceding year. The bank anticipates its outstanding credit debt to align with the limits set by the State Bank and expects it to reach approximately VND 178,200 billion by 2024. Pre-tax profit is targeted to rise by 17% compared to 2023, reaching VND 6,800 billion. MSB is committed to maintaining its consolidated bad debt (group 3-5) below 3% as per regulations. A representative of MSB emphasized that these targets are formulated based on thorough research and evaluation of the prevailing economic landscape, with a focus on fortifying internal capabilities and ensuring sustainable growth amidst market uncertainties.
Additionally, MSB seeks shareholders’ approval for a plan to increase its charter capital from VND 20,000 billion to VND 26,000 billion through a 30% stock dividend distribution from undistributed profits as of December 31, 2023, as per audited financial statements and legal deductions. This capital enhancement strategy is aligned with the bank’s expansion plans, bolstering its competitive edge and financial robustness to pursue strategic initiatives.
Furthermore, MSB intends to propose a dividend plan from prospective profits, including those generated in 2024, along with retained profits post-capital increase, at the General Meeting of Shareholders for approval. This plan aims to distribute dividends at a rate of ≤15% in cash or shares, contingent upon market dynamics and the bank’s operational performance.
Another crucial agenda item is the election of additional members to the Board of Directors for the VII term (2022 – 2026), following approval from the State Bank. This initiative underscores MSB’s commitment to reinforcing its leadership team with seasoned professionals, in line with unanimously endorsed plans and directions by the General Meeting of Shareholders, fostering continued stable development and solidifying its position as a highly profitable institution.
In line with its 2024 strategy, which emphasizes aligning business growth with risk management, MSB aims to diversify revenue streams by leveraging and nurturing its financial ecosystem, enhancing cross-selling solutions, and elevating non-interest income as a key pillar to alleviate pressure on core operations. Notably, MSB achieved outstanding results in foreign exchange transactions in the first quarter of 2024, with an estimated transaction volume exceeding $51 billion USD, and expects profits from this segment to surpass VND 550 billion, equivalent to 54% of the previous year’s net profit from foreign exchange activities.
Despite the banking industry’s overall credit growth slowdown, MSB anticipates its credit growth in the first quarter of 2024 to exceed 5%. The bank has also introduced a VND 3,000 billion green credit package with preferential interest rates to support business clients in various sectors including energy, water resources, construction, and technology.
Moreover, MSB anticipates maintaining its leading position among banks with the highest index of demand deposits on total deposits, reflecting the momentum of CASA recovery across the system. To address evolving risks in the digital landscape, MSB will continue fortifying its digital risk management framework, bolstering its defensive capabilities, and conducting comprehensive scenario-based risk assessments to ensure agility in navigating market fluctuations.
Looking ahead, digital channels are poised to be the primary growth engine for MSB during the 2024-2027 period, with strategic objectives including an average revenue growth rate of 25%, a 30% non-interest income (NFI) ratio, and digital channel revenue contributing 70% to total revenue.
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Source: Vietnam Insider