Business activities broke out, credit grew strongly
In the first quarter, MSB recorded total net revenue of more than 2,064 billion dong, up 63.4% year-on-year. In which, net interest income reached VND 1,419 billion, up 58.8% and contributed 68.7% of total net revenue of MSB. Growth in net interest income mainly came from MSB’s growth in customer file and loan portfolio size.
Besides the bright spot from net interest growth, MSB’s operating expenses showed a positive sign as it plummeted 20% to 712.9 billion. The cost-to-total income (CIR) ratio decreased to 34.5% compared to 70% in the first quarter of 2020.
From the above positive growth, MSB recorded pre-tax profit of VND 1,147 billion, 4 times higher than the same period in 2020, reaching 35% of the 2021 profit plan approved by the General Meeting of Shareholders ( 3,280 billion). As at 31/3/2021, the bank has not recognized any fee income from the signing of insurance contract with Prudential. This is also the most profitable business quarter of the bank in many years.
|Profit before tax increased 3 times in the first quarter. Photo: MSB.|
By the end of March, customer deposits at MSB reached about 91,800 billion, up nearly 5% from the beginning of the year and up 12.6% over the same period. Notably, demand deposits (CASA) increased by 15.88% compared to the beginning of the year and by 68.68% over the same period last year, reaching VND 29,700 billion, accounting for 32.34% of total deposits.
Capital adequacy ratio according to Circular 41 as of March 31st reached 9.64%, short-term capital ratio for medium and long term loans was 32.24%, complying with the standards of the State Bank. Return on equity (ROAE) and total assets (ROAA) are 16.36% and 1.56%, respectively. Basic earnings per share (EPS) accumulated in the last 4 quarters reached 2,500 VND / share.
With positive trading movements since its listing, MSB shares also met the selection criteria and passed the VN Diamond basket in April 2021’s review with a weight of about 1.6% of the portfolio. MSB has been listed since December 2020 and is currently trading at around VND 21,000-22,000, up 46% compared to the reference price on the listing date. According to banking industry stock price statistics, the current transaction price of MSB is lower than the market average when priced in terms of PE and PB (popular stock market valuations).
MSB’s plan to pay 30% dividend in shares has been approved by the General Meeting of Shareholders and is expected to be implemented in the third quarter of 2021 when approved by the regulator.
|Many activities of the bank prospered. Photo: MSB.|
Launch of many key strategic projects
With a vision of becoming one of the leading banks in improving customer experience, MSB has a long-term orientation with a strategy to digitize each part of existing banks. The first step in this long-term strategic direction is to build a “Digital Factory” with the ambition to transition from complex, rigid system processes to reconstructed customer journeys. design is completed from start to finish; Transforming from manual, time-consuming paper work to a full digitization process that can be deployed in no time.
To support the comprehensive digital transformation strategy the bank is pursuing in the 2020-2025 period, MSB also kicked off the project to build a new core-baking platform in April 2021. This new platform applies the most modern technologies compatible with today’s digital world, designed according to open standards, flexibility, flexibility, high autonomy and low cost.
Source: ndh.vn – Translated by fintel.vn