Senior Lieutenant General Le Huu Duc, chairman of MB's Board of Directors

At the AGM, Senior Lieutenant General Le Huu Duc, chairman of MB's Board of Directors said that the organisation has completed its strategic development plan for the period from 2017 to 2021 with the vision to become the most convenient bank with the motto – Digital Acceleration, Retail Breakthrough, Delivering Safe and Secure Services.

Although the pandemic has had a detrimental impact on the finance and banking sector, the outbreak has also leveraged MB to execute significant goals to advance digital innovation.

MB has exceeded the expectations set out in its last 5-year plan, fulfilling the objectives set by shareholders and reflecting the bank’s accomplishments when measured against the most critical indices of business health.

MB achieved 100 per cent of its strategic objectives ahead of schedule, including transforming its comprehensive ecosystem, enhancing member companies' governance capacity and operational efficiency, and fostering customers’ relationships through superior risk management and swift execution capacity.

Last year, MB witnessed its pre-tax consolidated profit reach almost $719 million, equivalent to a 4.5-fold increase compared to 2016. The bank also exceeded its profit predictions, holding a secure position in the four most efficient banks. Furthermore, there was a 50 per cent rise in labour productivity, resulting in $65,700 per capita.

In 2021, the group’s consolidated non-performing loan (NPL) reached 0.9 per cent, while the bank’s NPL was 0.68 per cent. MB Group’s total provision for NPL was 349 per cent, placing it among the top lenders with the lowest ratio of NPL to total assets and the largest provision for bad debt coverage. The consolidated cost-to-income ratio was 33.06 per cent, a decrease of 5 per cent from 2020. MB has now wrapped up its plan to pay a 35 per cent equity dividend.

With innovation in its DNA, MB has successfully expedited technological advancement, increased the quality and dependability of operations, cut operational costs, and boosted client engagement. The considerable number of new customers – around 12.9 million last year – has surpassed the bank’s record-high for its 26-year history.

A total pre-tax profit of just over $100 million was achieved by subsidiaries, which contributed 14 per cent to the group's total revenue. As a result, its securities company MBS was ranked among the top five securities firms in terms of derivatives brokerage market share. Its insurer MIC was placed among the top five non-life insurance companies in Vietnam and MB Ageas Life was listed among the top five Bancassurance insurance firms. All of which helped keep MB Group atop the list of banks in terms of Bancassurance sales.

MB's AGM 2022 in Hanoi

Thanks to its impressive performance, the bank has been approved by its shareholders to issue a 20 per cent dividend for 2021. MB group expects its total pre-tax earnings to rise by 23 per cent to around $880 million by the end of the year, keeping pace with the bank’s ambitious expansion plans.

The bank’s profit is expected to reach over $750 million this year, up 20 per cent. Accordingly, shareholders should anticipate seeing a rise in the value of their investments in MB’s shares in the fiscal year 2022.

Another significant item on the agenda for the bank’s AGM was a potential mergers and acquisitions deal with a domestic bank – one of three struggling institutions. According to MB's management, forcible transfer of this credit institution is required and consistent with the government's policy, the State Bank of Vietnam’s mandate, and the legislation.

In the long term, the deal could nearly double MB’s competitiveness, cement its position, and create more opportunities for future expansion, resulting in greater rewards for shareholders.

After its 5-year period of development, MB is embarking on the fundamental transformation in its next phase from 2022 to 2026, aiming to become a digitally-led financial behemoth in terms of efficiency on a continental scale.

MB and its subsidiaries continue to deliver highly personalised offers which require high-tech capabilities to bolster a seamless customer experience while ensuring security and round-the-clock transactions.

The group has crafted a detailed strategy for building exceptional value propositions across the world on the basis of a highly automated infrastructure underpinned by robust data assets.