MB accelerates expansion push to solidify top-five bank position

At its AGM on April 18, MB outlined its targets for scale, efficiency, and customer reach against a backdrop of Vietnam's economy establishing a new position, with GDP growth forecast at an impressive 9–10 per cent.

Under the motto 'Acceleration - Sustainability - Efficiency', MB has made no secret of its ambition to consolidate its position among the Top 5 banks and target serving 40 million customers this year.

“In 2026, we will continue to pursue three key principles – first, rapid growth with speed as a priority; second, ensuring sustainability and efficiency; and third, striving to become the number one bank in terms of transaction customers and top three in efficiency among joint stock commercial banks – while strengthening our position within Vietnam’s top five banks,” MB’s chairman Luu Trung Thai said, outlining the bank’s strategic direction at the AGM.

Providing details on its 2025 performance, MB reported consolidated total assets of over $64 billion, up 43 per cent, while successfully serving more than 35 million customers across its system. Pre-tax profit reached approximately $1.37 billion, up 19 per cent on-year, with return on equity (ROE) maintained at a top level of around 21.1 per cent.

MB’s chairman Luu Trung Thai

One of the most discussed topics at the AGM was profit distribution and the capital increase strategy, drawing strong interest from over 200,000 shareholders. Following a strong 2025 performance, MB proposed and secured approval for a total dividend payout ratio of 25 per cent, including 10 per cent in cash and 15 per cent in stock.

Addressing shareholder concerns over the 5 per cent tax on stock dividends, Thai noted that with more than 207,000 shareholders, preferences vary.

“Some prefer cash, others prefer shares. The 5 per cent tax is mandatory regardless of timing, so this structure reflects the majority preference while balancing interests. The capital increase is also necessary to prevent dilution and maintain ROE at an optimal level of 22-24 per cent,” he said.

Beyond dividends, credit growth and liquidity management became focal points as MB recorded an impressive disbursement growth rate of up to 36 per cent, significantly exceeding the industry average.

Responding to concerns over potential overheating, MB's CEO Pham Nhu Anh said the growth was well-controlled and represented a major opportunity.

"This is a chance for MB to accelerate and become a leading financial institution in terms of total assets and profit within the next four years," Anh said. "We have been granted a four-year period with a credit growth cap of up to 35 per cent following the mandatory transfer of OceanBank, now Modern Bank of Vietnam Limited. This provides a significant window for rapid expansion, enabling MB to scale up and strengthen its position as a major financial institution, as in banking, asset size and credit scale are key determinants of profitability."

Anh further explained that MB’s credit growth last year reached approximately 36 per cent, or close to 40 per cent before the bank transferred part of its loan portfolio to MBV to generate earning assets for the newly acquired entity.

“In 2025, MB mobilised over $40 billion from the primary market, with a funding gap of around $2 billion between deposits and loans. Shareholders questioned how lending could be sustained under such a gap. In fact, the bank has multiple funding sources – first, customer deposits; second, equity capital of $6 billion; third, international funding, currently at nearly $3 billion; and fourth, interbank borrowing,” he said

Despite strong growth, Anh asserted that MB will continue to maintain strict risk controls, targeting a standalone non-performing loan ratio below 1 per cent in 2026, while keeping the loan-to-deposit ratio at 79 per cent, well below the 85 per cent regulatory cap set by the State Bank of Vietnam.

“In the first quarter, the market remained challenging, and MB was among the few banks able to balance primary market funding with lending,” he added.

Pham Nhu Anh, CEO of MB

Regarding the foreign ownership cap, which is currently fully utilised, MB’s management said the bank has temporarily closed the room to seek a strategic investor capable of subscribing at a higher valuation, with an expected price range of $1.04-1.20 per share, thereby maximising value for existing shareholders rather than pursuing a broad issuance.

“Beyond the parent bank, MB is also accelerating restructuring across its subsidiaries. MBS and MB Capital are expected to contribute more significantly to the ecosystem by leveraging MB’s large customer base. For MB Capital, the bank has no intention to divest but is restructuring ownership toward a public company model, ensuring no foreign shareholder exceeds the 20 per cent cap in line with regulations,” the management stated.

The AGM concluded with shareholder consensus on a 2026 profit growth target of 15-20 per cent. As one of the few banks in the market able to balance funding and lending during a challenging period, MB is confident in its trajectory toward becoming a leading financial institution in both scale and efficiency in Vietnam and the region.

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