General Director of MB: Receiving the transfer of MBV is an opportunity to make a breakthrough

At the annual meeting on April 18, many shareholders of Military Bank (MB) questioned the leadership about this bank’s credit growth being higher than the general average. Accordingly, by 2025, MB’s loan balance will reach more than 1 million billion VND, an increase of nearly 40% compared to the previous year and double the average level of the entire system (19%). Meanwhile, deposit mobilization increased nearly 30% (reaching approximately VND 921,400 billion), lower than the growth rate of credit.

Responding to shareholders, Mr. Pham Nhu Anh, General Director of MB, said that part of the outstanding debt was transferred to Modern Vietnam Bank Limited (MBV) – the bank from which MB received a forced transfer, in order to create a source of profitable assets for this unit. Mr. Anh said that the difference between MB’s capital mobilization from deposits and loans is not a concern.

MB CEO also said that the bank’s loan growth rate is higher than the general market, but this is a special opportunity to make a breakthrough. Specifically, MB was allowed by the management agency to grow credit by about 35% after receiving the mandatory transfer of weak credit institutions. “We see this as an opportunity to accelerate, expand scale and enhance our position in the system,” he said.

He added that MB’s capital comes from customer deposits (market 1), equity (about 150,000 billion VND), international mobilization (3 billion USD) and sources from the interbank market. Thanks to diversifying capital sources, banks can ensure liquidity balance.

By the end of 2025, MB’s credit to mobilized capital ratio (LDR) is only 79%, meaning for every 100 VND mobilized, 79 VND will be loaned. This level is lower than the ceiling of 85% according to regulations of the State Bank. This shows that the bank’s safety indicators are still well maintained. “In the context of the market having difficulty with liquidity from the end of the fourth quarter of 2025, banks still maintain a balance in lending and mobilization, while many other organizations have exceeded the regulatory ceiling,” Mr. Anh acknowledged.

In fact, banks’ profit growth depends largely on the size of total assets and outstanding credit debt, because net interest margin (NIM) only fluctuates around 3-4%. Therefore, to increase profits, Mr. Pham Nhu Anh said expanding scale is the key factor. MB leaders said they will make the most of the remaining 3 years in this high growth cycle, but still ensure safety and control risks.

Despite rapid growth, MB’s asset quality is still improving. The bad debt ratio has continuously decreased over the past 3 years and this year is expected to be about 1.5% on the consolidated report, with the parent bank striving to be below 1%.

In addition to the credit growth story, many shareholders question MB’s plan to participate in the digital assets segment. MB Chairman Luu Trung Thai shared that they plan to cooperate with a foreign unit to operate digital assets.

However, he believes that the bank’s interests do not lie in operating a digital asset exchange, but in providing services to investors. Therefore, MB will shift to cooperating with digital asset exchanges, ensuring payment and selling more products. “It’s okay if we don’t receive a direct license. We don’t miss the opportunity to participate in this segment,” Mr. Thai said.

At the meeting, shareholders approved MB’s business plan this year with pre-tax profit increasing by about 15% compared to 2025, to VND 39,400 billion. Total assets are targeted to increase by 28%, exceeding the 2 million billion VND mark.