- 2024-01-31T00:00:00
- Company Research
MBB released consolidated results for 2023 with PBT of VND26.3tn (USD1.1bn; +15.7% YoY), completing 99% of our FY2023 forecast and implying Q4 2023 PBT of VND6.3tn (+38.6% YoY;
-13.6% QoQ). Overall, MBB’s bottom line tracked in line with our full-year forecast.
- 2023 consolidated credit growth was 28.0%, which was derived from (1) loan growth of 32.7% and (2) an 18.0% decrease in MBB’s corporate bond balance vs Q4 2022. As of Q4 2023, corporate bonds accounted for 5.9% of MBB’s total credit exposure (vs 9.2% as of Q4 2022). Per our observations, 2023 credit growth was driven by the corporate segment and various industries (i.e. wholesale & retail trade, real estate businesses, manufacturing, & processing). Additionally, lending to real estate businesses accounted for 7.1% of MBB’s total loan book (vs 4.6% in 2022).
- 2023 deposit growth was 27.9%. The Q4 2023 CASA ratio was flat YoY but improved 4.2 ppts QoQ to 40.2%, which remains the highest in our coverage.
- 2023 NIM of 4.79% (-87 bps YoY) was lower than our full-year forecast of 5.54%, which we attribute to higher-than-expected credit growth at the end of the year that distorted the IEA yield. Additionally, the retail lending portion decreased to 45.1% in 2023 from 48.1% in 2022, which we believe could have hindered the bank’s NIM.
- NOII has continually improved in the last three quarters and tracked ahead of our expectation. 2023 NOII of VND8.6tn (-9.9% YoY) fulfilled 107% of our full-year forecast. Q4 2023 NOII of VND2.6tn increased 21.9 % YoY and 14.8% QoQ due to strong fee income from settlement services, FX trading activities, and recovery from written-off bad debts.
- 2023 consolidated CIR of 31.5% was the same as our full-year forecast. The CIR slightly improved YoY due to a 2% YoY decrease in employee expenses.
- In Q4 2023, the consolidated NPL ratio decreased by 29 bps QoQ to 1.60% (vs our full-year forecast of 1.63%) while the Group 2 loan ratio decreased by 69 bps to 2.28% (vs our full-year forecast of 2.50%).
- In 2023, MBB was one of the few banks that reported a YoY decrease in provision expenses. 2023 write-offs to gross loans were 1.08% (vs 0.96% in 2022). MBB’s Q4 2023 LLR remained high vs its peers at 117.0% (vs 238.0% and 122.1% in 2022 and Q3 2023, respectively).
- Customer acquisition remained robust. As of 2023, MBB has 26 million customers using their mobile banking app, which increased 30% YoY.
MBB’s consolidated 2023 results
VND bn | 2022 | 2023 | YoY | Q4 2022 | Q4 2023 | YoY |
NII | 36,023 | 38,684 | 7.4% | 9,630 | 9,163 | -4.8% |
Non-interest income | 9,570 | 8,622 | -9.9% | 2,122 | 2,587 | 21.9% |
OPEX | (14,816) | (14,913) | 0.7% | (3,628) | (3,876) | 6.8% |
PPOP | 30,777 | 32,393 | 5.3% | 8,123 | 7,874 | -3.1% |
Provision expenses | (8,048) | (6,087) | -24.4% | (3,585) | (1,587) | -55.7% |
NPAT-MI | 18,155 | 21,054 | 16.0% | 3,434 | 4,986 | 45.2% |
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Loan growth** | 26.7% | 32.7% | 6.0 ppts | 8.1% | 13.9% | 5.9 ppts |
Deposit growth** | 15.3% | 27.9% | 12.6 ppts | 17.6% | 18.3% | 0.7 ppts |
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NIM | 5.67% | 4.79% | -87 bps | 5.82% | 4.30% | -152 bps |
Interest-earning asset yield | 8.25% | 8.57% | 32 bps | 9.25% | 7.98% | -127 bps |
Cost of funds | 2.94% | 4.34% | 140 bps | 3.94% | 4.26% | 32 bps |
CASA ratio* | 40.6% | 40.2% | -0.4 ppts | 40.6% | 40.2% | -0.4 ppts |
CASA ratio plus term deposits in FX | 41.7% | 41.2% | -0.5 ppts | 41.7% | 41.2% | -0.5 ppts |
CIR | 32.5% | 31.5% | -1.0 ppts | 30.9% | 33.0% | 2.1 ppts |
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NPLs / Gross loans | 1.09% | 1.60% | 51 bps | 1.09% | 1.60% | 51 bps |
Group 2 loans / Gross loans | 1.70% | 2.28% | 58 bps | 1.70% | 2.28% | 58 bps |
Accrued interest / IEAs | 0.97% | 1.00% | 2 bps | 0.97% | 1.00% | 2 bps |
Source: MBB, Vietcap — *CASA volume included demand deposits and margin deposits; ** Q4 2022 and Q4 2023 loan and deposit growth is QoQ growth; 2022 and 2023 loan and deposit growth is YoY growth.
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