After 9 months, Vietnam Maritime Bank (HoSE: MSB) achieved 83% of its annual profit target, with its service segment growing by 54%.
Total assets and credit growth of MSB both increased by 17% in the first 9 months of this year, while capital mobilization also saw a strong 11% increase, with CASA showing a good recovery after 2 challenging quarters.
MSB has recently announced its business results for the first 9 months of the year, with a profit reaching 83% of the annual plan. This profit level increased by 8.3% compared to the same period last year.
Positive performance across business segments
At the end of the 9-month period, the bank’s total operating income (TOI) reached VND 9,567 billion, a 19% increase compared to the same period in 2022. Net interest income exceeded VND 6,800 billion, marking a 9% increase compared to the first 9 months of the previous year. By emphasizing non-credit operations to offset market impacts on credit, the ratio of non-interest income to total income reached nearly 29%, a more than 6% increase from the same period.
Pure income from service operations reached VND 1,315 billion, a 54% increase compared to the same period in 2022, with payment services contributing 43% of the total service fee revenue. This growth is a result of MSB’s digital transformation efforts aimed at enhancing the customer experience.
Net income from foreign exchange operations reached nearly VND 1,031 billion, a 16% increase compared to the same period last year, continuing to leverage MSB’s pioneering position in this field. Due to higher revenue compared to the 8% increase in operating costs, as of September 30, the cost-to-income ratio (CIR) stood at 31.6%, lower than the 34.8% from the previous year. This demonstrates the effectiveness of the digital transformation process and cost management strategy. Based on the smooth coordination between cost management and profitability enhancement, MSB’s consolidated pre-tax profit for the first 9 months reached VND 5,223 billion, equivalent to 83% of the annual plan.
Strong growth in assets, capital mobilization, and credit, with high safety indicators
The bank’s total assets as of September 30 reached over VND 249,000 billion, a 17% increase compared to the end of 2022. Total customer credit reached nearly VND 141,244 billion, a 17% increase compared to the beginning of the year, surpassing the industry’s average growth rate. This growth was concentrated in stable sectors such as light industry and consumer goods.
Customer deposits reached VND 129,618 billion, an 11% increase compared to the end of the previous year. The ratio of non-term deposits to total deposits (CASA) reached 27.71%, indicating a recovery after 2 quarters of fluctuations, driven by changes in deposit interest rates and the effective implementation of highly digital products that meet customer preferences.
In the third quarter of 2023, in response to the State Bank of Vietnam’s direction, MSB reduced interest rates for customer loans three times. Although this directly impacted the bank’s net interest margin (NIM), MSB still maintained a NIM of 4.11%, only a slight decrease compared to 2022.
At the end of the third quarter, the non-performing loan ratio (NPL) was at 1.7% before the Credit Information Center (CIC) and 1.96% after CIC (according to Circular 02 of the State Bank of Vietnam). This reflects the bank’s efforts in controlling bad debt to strengthen its financial position against market impacts.
In terms of capital and liquidity, MSB also achieved positive results. The bank maintained ample liquidity, with a loan-to-deposit ratio (LDR) of 68.6% and a short-term capital ratio for medium and long-term loans (MTLT) of 29.18%, both well below the State Bank of Vietnam’s requirements. Affirming its strong and efficient capital position, MSB’s consolidated capital adequacy ratio (CAR) remained stable at 12.6%.
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Source: Vietnam Insider