MB has just announced a completion of selling 49 per cent stake in its consumer finance arm Mcredit Finance Company to Japan’s Shinsei Bank.
The profit of VND615 billion (roughly US$27.12 million) attaining from selling the stake in Mcredit accounted for a large proportion of Military Bank (MB)’s total net profit in 2017.
This financial company has a chartered capital of VND500 billion (roughly US$22.05 million), then renamed to MB Shinsei. Currently, MB holds half of MB Shinsei’s shares and the remaining one per cent is held by Xuan Thanh Investment Development & Construction Company.
The profit gaining from the sale of shares to Japanese banks helped to raise the profit of capital contribution and share purchase of MB in 2017 to nearly VND780 billion (roughly US$34.4 million), 10 times higher than in 2016.
Meanwhile, the net interest income of the bank increased by 35 per cent in 2017 up to VND10,653 billion (roughly US$469.8 million). This contributed to MB's after-tax profit of VND4,294 billion (roughly US$189.37 million) last year, 44 per cent higher than the previous year.
This result did not include the total profit of MB’s subsidiaries including MB Securities Company, MB Fund Management Company, MB Shinsei Finance Company, MB Ageas Life Insurance Company, Military Insurance Company and MB Assets Management Company.
In the past year, MB's total assets also increased by 22 per cent to VND306 trillion (roughly US$13.5 billion). The customer loans increased by 21.6 per cent to VND180 trillion (roughly US$7.9 billion) and customer deposits increased by 13 per cent to VND220 trillion (roughly US$9.7 billion).
According to MB’s report, the total value of bad debts by the end of 2017 was about VND2,183 billion (roughly US$96.2 million), accounting for 1.2 per cent of total outstanding loans. Compared with 2016, the bank's nonperforming loan ratio dropped slightly by 0.1 per cent.
Currently, MB's shares are traded at the price of VND27,750 (roughly US$1.224).
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