MBB - Stronger Operating Income in 2024
- In Q4/2023, MBB recorded total operating income (TOI) of VND 11.75 trillion (USD 475.71 million), nearly flat compared to the same period last year. Net interest income (NII) was VND 9.1 trillion (USD 368.03 million) (-4.8% YoY. Meanwhile, non-interest income grew by 21.9%, driven by (1) fee income of VND 1.4 trillion (USD 56.99 million) (+19% YoY) attributed to payment activities compensating for the decline in insurance operations, and (2) other non-interest activities amounting to VND 1.1 trillion (USD 44.32 million) (+26% YoY).
- For the full year 2023, MBB maintained high growth compared to the industry average thanks to cost reductions as total income growth slowed down, with CIR decreasing by 100bps and credit costs by 77bps compared to 2022. Consequently, total operating income and profit before tax (PBT) for the year were VND 57.9 trillion (USD 2.343 billion) (+3.8% YoY) and VND 26.3 trillion (USD 1.064 billion) (+15.7% YoY), achieving 101% of the bank's profit plan.
- In 2024, we estimate that total operating income will see double-digit growth from the low base of 2023, reaching VND 58.2 trillion (USD 2.344 billion) (+23.1% YoY). Accordingly, we expect most of the bank's core business segments to excel in 2024: (1) Net interest income is forecasted to increase by 26% YoY due to sustained credit growth at high levels and a slight NIM recovery from the second half of 2024; (2) Non-interest income is projected to grow by 6% thanks to brokerage and payment activities compensating for insurance operations (especially life insurance, which requires more time to recover). In the long term, with the advantage of a large corporate customer base in key sectors of the economy, we expect MBB to maintain a compound annual growth rate of profit after tax (5Y CAGR) for the period 2024-2028 at 23% and ROE to remain above 20% as economic activities pick up. Therefore, we have raised our 12-month target price for MBB to VND 28,200 /share and recommend BUY the stock for medium to long-term investment objectives, with a potential return of 20% compared to the closing price on March 14, 2024.
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.