MBB - Accelerated digitization initially proved effective
The military ecosystem and MBB's ability to stand apart from peers in building customer experience will help the bank maintain its competitive edges in profitability, especially in the race to increase CASA ratio. The process of cleaning up the consumer finance segment will have to come at the expense of slowing growth and narrowing NIM in this segment in the short term. Large investments in long-term competitiveness may also cause profit margins to shrink temporarily in the period 2022-2023, per our estimate. However, good asset quality together with thick capital buffer will continue to ensure MBB's safety against major shocks.
We estimate the fair value of the stock at VND48,800/share. If there is no cash dividend in the next 12 months, the total return will be 22% based on the closing price of July 6th, 2021. We recommend BUY MBB stock.
Military Commercial Joint-Stock Bank (MB) is a Vietnam-based financial institution. It is engaged in the offering of commercial banking services and derivative products. The Bank also acts as an insurance agent and provides related services. It is involved in the trading of bonds and other valuable papers, as well as the trading and processing of gold. In addition, the Bank is engaged in monetary intermediation activities. As of December 31, 2011, the Bank had five subsidiaries, three affiliates, one branch in Laos, one branch in Cambodia, 53 branches, 118 transaction offices, four saving funds and four transaction points in cities and provinces throughout Vietnam. As of the same date, its subsidiaries included MB Securities Joint Stock Company (MBS), MB Fund Management Stock Company (MBCapital) and MB Assets Management Company Limited (AMC).
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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