Home Business Financial Update Report: Vietnam Maritime Bank (MSB)

Financial Update Report: Vietnam Maritime Bank (MSB)

by Asia Insider

This report provides an overview of MSB’s financial performance and stock analysis, aiding investors in making informed decisions.

Positive Business Results

First Quarter Performance: Vietnam Maritime Bank (MSB) has shown promising business results in the first quarter of 2024. Although the comprehensive results for the first six months have not yet been announced, the bank’s credit growth reached 5.6% in Q1, completing 22.5% of its annual plan. This credit growth rate surpasses the industry average, indicating a strong performance and suggesting that MSB could achieve over 20% credit growth for the entire year.

Strategic Segments: The bank’s robust credit growth is driven by its focus on two strategic segments: retail and small and medium enterprises (SMEs). These segments are expected to continue fueling the bank’s growth throughout the year.

CASA Ratio: MSB’s Current Account Savings Account (CASA) ratio reached 28.2%, the fourth highest in the industry. The bank anticipates that the CASA ratio will continue to improve as term deposit interest rates remain low. This improvement is expected to help MSB maintain its Net Interest Margin (NIM) at 4%.

Abnormal Income Growth from Bad Debt Recovery

In Q2 2024, MSB reported extraordinary income of over VND 800 billion from the recovery of bad debts. The bank projects additional extraordinary income from further bad debt recovery, estimating a total recovery of approximately VND 1,700 billion for the entire year.

Capital Increase Plan

The State Bank has officially approved MSB’s plan to increase its charter capital by distributing 30% dividends in shares. MSB is in the process of completing the necessary procedures to implement this plan, which will increase its capital to VND 26,000 billion.

Technical Analysis: Stock Performance

Wyckoff Pattern: MSB is maintaining an upward-sloping accumulation structure known as the Wyckoff pattern, indicating a strong buyer presence. The SPRING phase has formed a shakeout within the price channel, breaking the MA200 with significant volume and continuing upward.

Phase D Analysis: In Phase D, the price is fluctuating within a narrower range, with both MA200 and MA50 pointing upwards.

Investment Consideration

Based on the current financial and technical analysis, investors might consider buying MSB stock in the price range of VND 14 – 15, with a stop-loss if the price falls below VND 13.5. The nearest resistance level is expected to be around VND 18.

Source: Vietnam Insider

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