AsemconnectVietnam - SeABank (SSB) pays stock dividends and issues bonus shares to increase charter capital to VND24,537 billion; LPBank’s profit in the first 6 months of 2023 decreased by 31.8% yoy; Eximbank’s profit in Q2/2023 fell by more than half over the same period; MB (MBB) earned VND12,735 billion in the first 6 months, adding 4 million new customers.

SeABank (SSB)
Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB) issues shares to pay dividends and shares to increase share capital from equity (bonus shares) with a total ratio of 20.3 % to increase charter capital from nearly VND20,403 billion to VND24,537 billion.
This plan is part of the capital increase roadmap approved by the 2023 Annual General Meeting of Shareholders (AGM) of SeABank and the State Bank.
Specifically, SeABank issued 295,200,000 shares (equivalent to 14.5%) to pay dividends in 2022 and issued 118,201,732 bonus shares (equivalent to 5.8%).
After completing the above share issuance, SeABank's charter capital will increase by more than VND4,134 billion, from nearly VND20,403 billion to VND24,537 billion.
The increase in charter capital is an important milestone in SeABank's plans and orientations, helping the Bank strengthen its financial capacity to achieve its goals: implementing a digital convergence strategy, and investing heavily in technology, comprehensively digitizing operating processes in credit, payment, customer service activities, diversifying products and services, thereby bringing operational and transaction efficiency, increasing customer experience and better meet the needs of all customers.
Previously, SeABank successfully held the 2023 Annual General Meeting of Shareholders with the approval of many important contents. SeABank is expected to increase its charter capital to a maximum of VND25,903 billion under the plan of issuing shares to pay dividends and bonus shares at a rate of nearly 20.3%, offering private shares to foreign investors with a rate of more than 4.6% and issued shares under the employee option program (ESOP).
LPBank (LPB)
Lien Viet Post Commercial Joint Stock Bank (LPBank - stock code: LPB) has just announced its business results for the second quarter and first six months of 2023.
Accordingly, LPBank closed the second quarter with many fluctuations with pre-tax profit of VND880 billion. Accumulated to June 30, 2023, LPBank's pre-tax profit was at VND2,446 billion, down 31.8% over the same period in 2022. Previously, at the 2023 annual meeting held in April, the General Assembly LPBank shareholders set a target of pre-tax profit this year at VND6,000 billion, up 11% compared to 2022.
LPBank's business activities in the first half of this year were in the context of general difficulties of the industry as well as the economy. With central banks around the world tightening monetary policy from 2022, the Fed continuously raised interest rates, along with the freezing situation in the asset market (especially real estate) negative impact on the domestic banking system.
According to the General Statistics Office, as of June 20, 2023, credit growth of the whole banking system only reached 3.13%, much lower than in the first half of 2022 (the same period last year increased by 8.51%).
Low credit growth shows that the economy's ability to absorb capital is still weak. The main reason is due to the sharp decrease in credit demand, the lack of orders for export enterprises, in addition, some groups of customers have demand but have not met the loan conditions or still have problems with legal procedures.
Credit (output) has faced difficulties although recently, lending interest rates have cooled down to support customers to restore production and business, while input still has a balance of capital mobilized with high interest rates since the end of 2022 and the beginning of the year, therefore, the net interest income of affected banks is understandable.
LPBank data shows that, at this bank, capital mobilization reached more than VND267,133 billion. Outstanding loans reached VND253,419 billion. The bad debt ratio, although increased compared to the end of 2022, is still within a safe range.
It is known that on the basis of exploiting the large network to develop the retail customer segment in rural areas, the bank's capital mobilization will still grow well in the first half of 2023. Revenue from services is also good and diversify supply activities. Income from foreign currency trading grew strongly compared to the same period last year. Accordingly, net service revenue brought in VND475 billion.
Notably, the State Bank has recently approved for LPBank to increase its charter capital by a maximum of VND11,385.3 billion through issuing shares to pay dividends (VND3,285 billion), offering shares to existing shareholders (VND5,000 billion), private placement of shares to foreign investors and issuance under the employee selection program to increase charter capital.
Eximbank (EIB)
Vietnam Export-Import Commercial Joint Stock Bank (Eximbank, code EIB) announced its financial report for the second quarter of 2023 with negative results when many activities decreased.
Accordingly, in the second quarter of 2023, main activities decreased by 23% over the same period, earning only VND1,094 billion in net interest income.
The reason for the decline as explained by Eximbank was that the Bank had to reduce lending interest rates to support customers according to the Government's policy. In addition, the high interest rate on capital rising leads to an increase in the cost of capital. At the same time, the profit from buying and selling investment securities decreased by 95%, to more than 4 billion dong due to unfavorable business conditions for valuable papers such as government bonds and bonds of credit institutions.
Eximbank's net profit from other activities in this quarter also decreased by 73%, to nearly VND74 billion, mainly due to the slow implementation of debt collection and liquidity and the transaction situation in the real estate market slower than the same period.
In addition, Eximbank's profit from service activities in the second quarter of 2023 was approximately the same period at VND124 billion. Profit from foreign exchange trading is a rare source of income that grew in the quarter when it increased by 55% to nearly VND185 billion.
Eximbank's operating expenses this quarter decreased by 4% to nearly VND769 billion, mainly due to a reduction in staff costs. However, because most of the business segments went backwards compared to the same period, the net profit from business activities of Eximbank in the second quarter of 2023 decreased by 42%, to just over VND712 billion.
In the second quarter of 2023, Eximbank deducted nearly VND178 billion for risk provision, up 37% over the same period. According to Eximbank, individual and corporate customers faced difficulties, leading to the loan balance shifting to a higher debt group, including a part of CIC's debt group being transferred from other credit institutions.
As a result, Eximbank's pre-tax profit in the second quarter was only nearly VND535 billion, down 51% over the same period.
In the first 6 months of 2023, although the provision was reduced by 6% to only VND270 billion, because net profit from business activities was only VND1,675 billion (down 24%), Eximbank only achieved pre-tax profit VND1,405 billion, down 26.1% over the same period last year, just completed 28% of the year plan (VND5,000 billion).
As of June 30, 2023, Eximbank's total assets reached VND190,301 billion, up 2.8% compared to the end of last year, of which customer loans increased modestly at only 1%. This is also part of the reason why the bank's net interest income declined in the first half of the year.
Eximbank's customer deposit balance reached VND154,278 billion, an increase of 3.8% compared to the end of last year and equal to 117% of the loan balance.
In terms of asset quality, the bank's bad debt balance increased sharply by 54.5% to VND3,625 billion, bringing the bad debt ratio from 1.8% at the end of last year to 2.75% at the end of the second quarter of 2023.
MB (MBB)
Military Commercial Joint Stock Bank (MB - stock code: MBB) has just announced its business results report for the second quarter and the first 6 months of 2023. Accordingly, MB has maintained a good performance in business objectives according to the proposed plan and steady growth.
Specifically, the consolidated financial statements of the second quarter showed that Military Bank and its member companies (MB Group) continued to maintain stable business results. Accordingly, the Bank recorded total assets of more than VND806,000 billion, up 10.7% compared to the beginning of the year, profit before tax of parent bank MB increased by 11.8% over the same period to VND11,950 billion; Consolidated pre-tax profit increased by 7.1% to VND12,735 billion.
Consolidated customer deposits reached VND475,406 billion, up 7.2% over the same period last year. MB's CASA ratio reached 37.06%, in group 1, the highest among joint stock commercial banks. CASA's deposit size continues to remain at the top of the industry.
Credit growth was one of the bright spots at MB in the first 6 months of this year with the combined outstanding loans of MB bank increasing by 10.6% compared to the beginning of the year, of which the outstanding loans in the second quarter grew better than the first quarter (growth of 6.8% compared to the first quarter, an increase of 3.7%).
In terms of credit quality, MB's bad debt ratio increased slightly compared to the end of 2022, the consolidated bad debt ratio recorded 1.33% (including corporate bonds), of which the bank was 1.12% and lower than the level of 1.76% at the end of the first quarter. This result was achieved thanks to the Bank's preparation in advance and fully setting aside some problematic restructuring debts during the Covid period, to prepare for bad situations.
MB's operating expenses are also controlled according to the plan. Accordingly, the CIR rate increased slightly over the same period in 2022 (32.79% compared to 32.63% in the same period in 2022).
Continuing to pursue the goal of "becoming a digital enterprise - a leading financial group", MB Group has applied technology, digitally transformed management and operation activities, pioneered the market in terms of credit limits, disbursement of international money transfer, signing of credit documents using CA Cloud…
In the first half of 2023, MB Group has implemented digital factory projects and platform initiatives. Thanks to this, the Bank maintained the speed of attracting new customers, accumulated by the end of June, there were nearly 23.5 million individual customers and nearly 300,000 corporate customers.
In addition to improving the experience on digital channels such as the MBBank App and BIZ MBBank, diversifying services and products according to the needs of customers, MB continues to develop the transaction network through the MB SmartBank system (intelligent automated banking), helping banks to serve customers more comprehensively.
MB leaders shared, MB Group expects that in the last 6 months of 2023, total assets will increase by more than 20%, credit growth for good customers. In the coming time, MB will continue to promote rapid growth of Guarantee products and services, with a target of 120% growth in trade finance and over 150% in Bancas and credit cards. At the same time, MB also continues to be consistent in its goal of conquering 30 million customers in the period 2022 - 2026.
N.Nga
Source: VITIC/Tinnhanhchungkhoan