MB finalises strategy for acquisition of distressed bank

April 22, 2024 | 16:33
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At Military Bank's (MB) AGM on April 19, CEO Pham Nhu Anh revealed that the bank has completed all necessary procedures for the compulsory transfer of a troubled bank, with a target completion date set for this year or 2025, contingent on government approval.
MB finalises strategy for acquisition of distressed bank
Luu Trung Thai, chairman of MB

"We have finalised our proposal for the transfer and submitted it to the State Bank of Vietnam for government review. We aim to finalise this transaction this year or next, which would provide MB with new opportunities for growth, especially in terms of credit expansion," Anh said.

Luu Trung Thai, chairman of MB, added, "We are fully prepared for this task, with only the government's approval pending."

During a banking conference at the start of the year, Thai called on the government to fast-track the approval process for the transfer within the first quarter.

The identity of the troubled bank MB intends to acquire was not disclosed during the shareholder meeting. However, information shared by a bank executive last year indicated that the bank in question had accrued losses of approximately $833 million and had a non-performing loan ratio of 47 per cent.

This points to the likely acquisition of Oceanbank, previously taken over at no cost due to its severe financial difficulties.

Besides Oceanbank, there are four other financial institutions under special supervision: Construction Bank, Global Petroleum Bank, DongA Bank, and Saigon Commercial Bank.

MB secures prestigious software and IT service awards MB secures prestigious software and IT service awards

Military Commercial Joint Stock Bank (MB) has just clinched three Sao Khue Awards 2024, extending its winning streak to six consecutive years. The bank's innovative digital products - the Stellar fashion payment bracelet, the MB JCB Be The Sky card, and the mSeller sales management software - were honoured at the event.

By Celine Luu

What the stars mean:

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