Military Commercial Joint Stock Bank · HOSE:MBB
Military Commercial Joint Stock Bank — MB Bank — 1H 2024 Earnings Presentation
29 slides from Military Commercial Joint Stock Bank's earnings presentation, July 2024
Slide 1: Update Business Results 1H.2024 MB Bank
Update Business Results 1H.2024 MB Bank July, 2024 Document is prepared by MBGroup
Slide 2: Contents
CONTENTS 1 Brief introduction 2 1H.2024 market context 3 1H.2024 results of MB group and affiliates 4 Key performance highlights in 1H.2024 5 MB financial information 6 Share price performance 1
Slide 3: MB Brief Introduction
CHAPTER 1 MB BRIEF INTRODUCTION
Slide 4: Milestones, Awards and Ratings
Milestones, Awards and Ratings Unit: trillion VND Highlights Key milestones MB 6M24 Rank 1994 2010 2011 2016 2019 2020 2022 2024 Asset 989 Top 4 TOI 26,1 Top 5 • Establisted • Opening first • Listed in • Launching • Rebranding • Top • 20 millions • 30 MB Ageas PBT 13,4 Top 3 on Nov 4 overseas HOSE •
Slide 5: Economic Context
CHAPTER 2 ECONOMIC CONTEXT
Slide 6: Market Context in Q2.2024
Market Context in Q2.2024 GDP (yoy %) Macroeconomics: 13,7 • GDP Q2.24 increases by 6.9% (industrial sector accounts for 46%, increases by 8.3%). 7,7 6,7 6,9 • CPI in July increases 0.48% mom, and increases 5,9 5,6 5,0 4,1 5,3 4.36% yoy. Inflation pressure is increasing slightly. 3,3 • Exports reach
Slide 7: Results of MB Group
CHAPTER 3 RESULTS OF MB GROUP
Slide 8: Q2.2024 Highlights: A positive growth rate
Q2.2024 Highlights: A positive growth rate • TOI of Q2 is VND 26.14 trillion, up 11% year-on-year (YoY). TOI 26,146 • NII decreases by -1%, NFI increases by 48%, accounts for 82% 11% and 8% respectively of TOI. 13,428 • Pre-provision profit increases by 15% and the PBT increase 5% PBT yoy. The main
Slide 9: Structure of TOI and PBT of Group 1H.2024
Structure of TOI and PBT of Group 1H.2024 Unit: VND Billion 1,423 1,975 4,713 855 2,299 8,005 26,146 ~5% 19,593 Affiliates 13,428 ~95% Bank NII NFI F/X Financial Others TOI Provision Operating PBT Asset Expense Expense +/- yoy -1% +48% +23% 390% -26% +11% +54% +4% +5% • PBT grows at 5.5% comparing w
Slide 10: MB Key Performance
CHAPTER 4 MB KEY PERFORMANCE
Slide 11: Revenue grows at 11% comparing with the same period
Revenue grows at 11% comparing with the same period Unit: Billion VND TOI NFI 47.306 +18% 45.593 36.934 +11% 27.362 26.146 24.650 43.221 23.491 41.458 32.567 23.786 23.846 21.464 21.940 3.186 3.576 4.367 4.135 4.085 1.550 2.299 2019 2020 2021 2022 2023 1H.2023 1H.2024 NIM (%) 4.9 4.8 5.1 5.8 4.9 5.6
Slide 12: Details of revenue components
Details of revenue components Unit: VND Billion Interest Income NII -5% -1% 34.824 33.213 1H.2023 1H.2024 19.709 19.593 Interest Expense TOI -10% 1H.2023 1H.2024 -15.115 -13.620 NFI +11% 1H.2023 1H.2024 +48% FX and Derivatives +23% 23.491 26.146 2.299 1.550 696 855 1H.2023 1H.2024 1H.2023 1H.2024 1H
Slide 13: NFI structure
NFI structure Unit: Billion VND Settlement and Cash Services +13% Advisory services 1.348 1.524 +964% 1H.2023 1H.2024 Insurance services 229 22 NFI -5% 1H.2023 1H.2024 +48% 4.195 3.992 Debt settlement, appraisal and asset management 1H.2023 1H.2024 +121% Securities brokerage services 2.299 1.550 +59
Slide 14: Asset yield, cost of fund and earning asset mix
Asset yield decreases mainly due to lower lending interest rates to support customers, CoF decreased thanks to low mobilization interest rates and a more optimal mobilization structure. Earning asset mix (VND tril) YTD Asset yield(%) Others Corporate bond +5% Goverment bond Customer loan 8,4 8,7 9,1
Slide 15: Credit grows impressively in first half
Credit grows impressively in first half, mainly thanks to boosting corporate customer group Loan (including Cor Bond) mix by segments Loan (excluding Cor Bond) mix by terms VND trillion VND trillion Loan yield Corporate loan YTD YTD Short term loan Corporate bond Retail +9.4% Medium and long term lo
Slide 16: Deposit maintains a sustainable high CASA structure
Deposit maintain a sustainable high CASA structure with stable growth rates from individual mobilization Deposit by term and deposit rate Deposit mix by type VND trillion Average cost of customer deposit CASA VND trillion YTD YTD Term deposit 4,2 Corporate Retail +9.0% +9.0% 3,7 3,3 3,4 619 619 568
Slide 17: CIR is on a downtrend
CIR is on a downtrend Unit: VND Trillion 45% CIR 39% 39% Others YOY 34% 33% 33% Asset expense 32% 31% Operating & service mgt expenses 14,8 14,9 0,5 0,6 16% Staff expenses 12,4 2,6 0,4 2,8 10,6 9,7 0,3 2,2 7% 8,7 0,2 1,6 3,6 3,5 7,7 8,0 0,5 1,3 3,1 1,1 2,2 2,7 0,3 0,3 1,4 1,5 2,2 1,6 -1% 1,6 6,7 8,2
Slide 18: Provision expenses and NPL
Provision expenses and NPL NPLs and LCR Credit cost and provision LCR (%) NPLs (%) Credit cost General provision Specific provision 1,7% 1,8% 238 1,5% 1,3% 1,2% 1,2% 156 2,5 1,1% 138 122 117 102 12.333 80 11.976 11.687 11.676 11.470 12.244 11.215 3.401 3.569 3.997 2.867 3.058 3.857 5.041 1,8 1,9 1,6
Slide 19: Governance: Capital and CAR ratio
Governance: Capital and CAR ratio TIER 1 + TIER 2 Funding mix (VND tril) Others Valuable papers 11,3 11,2 11,5 11,3 10,7 11,1 Deposits and borrowings from other CIs Customer deposit Tier 2 1,5 1,5 1,5 1,4 0,9 0,7 884 847 6% 799 7% 720 724 12% 7% 12% 649 676 6% 7% 10% 6% 11% 7% 12% 10% 15% 13% 10% 11
Slide 20: 2024 Business guidances
2024 Business guidances Key actions Executing strategic initiatives for 2022 – 2026 to attract new customers to reach 30 millions by the end of 2024. Strengthening group synergies, promoting cross-selling to expand Up by 13% Up by 18.2% scale, market share, and increase group competitiveness.
Slide 21: MB Financial Information
CHAPTER 5 MB FINANCIAL INFORMATION
Slide 22: Q2.2024 results: Income Statement
Q2.2024 results: Income Statement 2020 2021 2022 2023 Q2.2023 Q2.2024 Unit: VND billionsChange Change Change Change Change (VND bn) (VND bn) (%) (VND bn) (%) (VND bn) (%) (VND bn) (%) (VND bn) (%) Loan Income 24,384 4.9 28,763 18.0 39,208 36.3 53,081 43.3 26,187 26,124 -0.2 Bond Income 6,005 14.5 6,
Slide 23: Q2.2024 results: Balance Sheet
Q2.2024 results: Balance Sheet 2020 2021 2022 2023 Q2.2024 Change Change Change Change (%) (%) (%) (%) (VND +/-(%) (VND bn) (VND bn) (VND bn) (VND bn) bn) Assets Cash 3,109 32.6 3,475 11.8 3,744 7.7 3,675 -1.8 4,329 17 Balance with the SBV 17,297 20.6 38,051 120.0 39,654 4.2 66,322 67.2 18,087 -73 I
Slide 24: Q2.2024 results: Financial Ratios
Q2.2024 results: Financial Ratios 2019 2020 2021 2022 2023 Q2.2024 • MB's Total consolidated assets Profitability increases by 4.6% with the asset Pre Provision PBT structure continuing to shift to Customer 14,927 16,807 24,557 30,777 32,393 18,141 (bn VND) Loans (64% of Total asset). PBT (bn VND) 1
Slide 25: Share Price Movement
CHAPTER 6 SHARE PRICE MOVEMENT
Slide 26: MBB Share Price Performance
MBB Share Price Performance Share price compared to industry (01/2017-7/2024) Ticker: MBB VN Foreign Owned: 23.2% Price: VND 23,900 (23/07/2024) Foreign Room: 0% (full room) No of shares outstanding: 5,306 million Market Cap: 5.3 billion USD 25
Slide 27: MBB Share Price Performance: P/B vs ROE
MBB Share Price Performance MBB has an attractive valuation compared to its competitors when P/B is only 1.3 while the industry average is 1.6. Regression analysis: P/B and ROE P/B (05/06/2024) 4,0 3,5 3,0 VCB 2,5 y = 0.04x + 0.82 R² = 87% BIDV 2,0 1,5 TCB ACB VPB CTG STB 1,0 MBB 0,5 0,0 ROE (%) 0 6
Slide 28: Note
Note DISCLAIMER: • This document is prepared for meetings between MB and investors based on publicly available information and MB does not assume any responsibility on the accuracy of the information. • Information in this document is for reference only, changes on any comments and forecasts can be
Slide 29: Thank You
THANK YOU