MBBank hunts high credit growth

Accordingly, the bank’s total outstanding loans, including foreign branches, at the end of 2012 hit VND74,564 billion ($3.58 billion), up 27 per cent compared to the end of 2011. Its non-performing loans amounted is less than 2 per cent.

The total banking system credit growth by the end of 2012, from State Bank’s figures, was 8.91 per cent.

At the beginning of 2012, the bank received the credit growth quota of 17 per cent from the State Bank. But in August last year, on the back of healthy credit growth, the State Bank allowed Military Bank to increase its quota to 25 per cent.

Military Bank is one of five banks to raise the credit growth higher than original limit. Those banks include OceanBank and TienPhongBank (27 per cent), VPBank and HDBank (30 per cent), but until now, only Military Bank announced to reach the granted limit.

In 2012, Military Bank also had positive business results with total assets of VND178,440 billion (8.57 billion), up 33 per cent year on year, a mobilisation growth rate of 32 per cent, or VND118 trillion (5.66 billion).

However, the bank only achieved more than 90 per cent of the year-plan profit. The bank’s estimated unconsolidated pre-tax profit was VND3,024 billion ($145.23 million). This resulted from the fact that Military Bank must lower lending rate under State Bank’s direction.

The bank’s profit structure had a major shift this year, with higher contributions from service activities and lower from credit activities. The lender’s net revenue from services increased by 19 per cent, on year.

In 2013, with State Bank approval, the lender will increase its chartered capital to VND10,625 billion ($510 million) from VND10,000 billion ($480 million).