MB BANK QUARTER 1.2018 RESULT PRESENTATION April 2018 1
MB Bank Overview Company Name Bloomberg Ticker MB Commercial Joint Stock Bank MBB VN Established 4 th November 1994 Head Office Office Network Employees Customers Offering 21 Cat Linh, Dong Da District, Hanoi, Vietnam 1 Head Office, 282 offices in Vietnam, 2 branches in Vientiane and Phnom Penh, 1 representative office in Russia. 8,617 excluding subsidiaries 3.2 million Full range of banking services to Corporate, SME and Retail customers Rating B+ with stable outlook. from Fitch Rating as of March 2018 Paid-in Capital VND 18,155 billion ($799 million) as of 31 March 2018 Total Assets VND 316,345 billion ($13.8 billion) as of 31 March 2018 Website https://www.mbbank.com.vn 2
Key Milestones Increased the chartered capital to VND 5,300 billion; Launched internal rating system; Strategic partnership with Viettel 2008 2010 Became a listed company; Opened first branch in Cambodia. 2011 Signed Strategy Advisory Service Contract with McKinsey; Opened first overseas branch in Laos. Awards in 2016 2015 Introduced MB Ageas Life and MCredit 2016 Complete 2011 2015 strategy; Top 50 most valuable brands in Vietnam Straight Through Processing (STP) Bank has an efficient and safe information technology system 2017 Implement 2017-2021 strategy; Launched MB fan page. embee Apps on Facebook Shareholders Structure 31/03/2018 Others 33.5% Foreign Investors 20.0% VIETTEL 14.6% VCB 7.0% SCIC 9.7% Sai Gon New Port Corp 7.5% Vietnam Helicopter Corp 7.8% Awards in 2017 Fitch Rating: Upgrades MB to B+ from B with a Stable Outlook JCB: Leading bank in new card Product Received Emulation Flag of Government. Ministry of Defense. SBV Information security system - UK ISO ICC Vietnam s top 500 best growth and prosperity companies 2017 Best Project in Vietnam Vietnam top 10 banking reputation award 2017 JP Morgan: Best in - Class MT202 STP Rate 99.84% and Best - in - Class 3 MT103 STP Rate 99.39%
Fitch s bank ratings 2016 2017 B: Positive Outlook B+: Stable Outlook Bank Sector B: Positive Outlook : MB, Vietcombank, Vietinbank, ACB, Agribank B+: Stable Outlook: MB, Vietcombank, Vietinbank, ACB, Agribank Source: Fitch Rating, Fitch s affirms ratings of Vietnamese banks. March 2018 4
MB as a Financial Group (79.5%) (61%) (100%) (50%) (90.8%) (69.6%) (65.4%) 5
BOD and Management Team Board of Directors Lê Hữu Đức Chairman Nguyễn Mạnh Hùng Vice Chairman Lê Công Vice Chairman Lưu Trung Thái Vice Chairman cum CEO Hà Tiến Dũng Member Nguyễn Đăng Nghiêm Member Nguyễn Thị Ngọc Member Nguyễn Văn Hùng Member Nguyễn Thị Thủy Member Nguyễn Văn Huệ Independent Member Nguyễn Chí Thành Member Board of Management Lưu Trung Thái Vice Chairman cum CEO Lê Hải Deputy CEO Nguyễn Thị An Bình Deputy CEO Lê Quốc Minh Deputy CEO Lê Thị Lợi Deputy CEO Phạm Thị Trung Hà Deputy CEO Trần Minh Đạt Deputy CEO Uông Đông Hưng Deputy CEO Hà Trọng Khiêm Deputy CEO Nguyễn Minh Châu Senior Member of BOM Lê Xuân Vũ Member of BOM Supervisory Board Vũ Thị Hải Phượng Head of Supervisory Board Đỗ Văn Hưng Member Lê Minh Hồng Member Đặng Quốc Tiến Member 6
Organization structure GENERAL MEETING OF SHAREHOLDERS BOD OFFICE INTERNAL AUDIT OFFICE SUPERVISORY BOARD BOARD OF DIRECTORS INVESTMENT DIVISION HUMAN RESOURCE COMMITTEE RISK MANAGEMENT COMMITTEE CREDIT COMMITTEE CEO 1. MBAMC 2. MBS 3. MBCAPITAL 4. MBLAND ALCO COMMITTEE HUMAN RESOURCE DIVISION PMO OFFICE CEO OFFICE 5. MIC 6. MBCREDIT 7. MBLIFE INTERNAL INSPECTION AND CONTROL DIVISION RISK MANAGEMENT DIVISION FINANCE AND ACCOUNTING DIVISION NETWORK AND QUALITY MANAGEMENT DIVISION LEGAL DEPARTMENT ADMINISTRATIVE DIVISION LARGE CORPORATE DIVISION SME DIVISION PERSONAL FINANCIAL SERVICE DIVISION TREASURY DIVISION STRATEGIC CUSTOMERS DEPARTMENT DIGITAL BANKING DIVISION OPERATION DIVISION APPRAISAL AND APPROVAL DIVISION IT DIVISION BRANCHES / REPRESENTATIVE OFFICES 7
Vietnam s Economy and Banking sector Quarter 1.2018 8
USD bil Vietnam s Economy and Banking Sector 1. Economy had an impressive growth in Quarter 1/2018 GDP growth reached 7.38% yoy for Q1/2018. In which: Agriculture, forestry, fishery sector increased by 4.05%; contributed 0.46% to the general increase. Industrial and construction sector increased by 9.7%; contributed 3.39% to the general increase. 5.6% 6.7% GDP Growth 5.1% 6.2% 7.5% 7.7% 7.4% Service sector increased by 6.7%; contributed 2.75% to the general increase 2. Inflation is under control Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Mar.2018 CPI decreased by 0.27% compared to Feb.2018, increased CPI 5.4% by 2.66% compared with that of 0.9% 4.5% the same period in 2017, and 0.7% increased 0.97% ytd. 3.6% Transportation group decreased 0.77%; F&B group decreased 0.62%; housing & building materials group decreased 0.28%. Drugs and medical services increased by 1.98%; Housing Furniture increased by 0.02%; Education increased by 0.01%. CPI in March dropped mainly due to gasoline, train and gas prices. 3. Trade surplus For Q1.2018, trade surplus reached USD 1.3 billion. Export was estimated at USD 54.31 billion (increased by 22% over the same period); Import was estimated at USD 53.01 billion (increased by 13.6% over the same period); The domestic sector had a trade deficit of USD 6.3 billion; FDI sector had a trade surplus of USD 7.6 billion 200 3.0 150 0.5% 2.7% 100 2.0 0.3% 1.8% 50 1.0 0.9% 0.1% 0 0.0 0.0% T3 T5 T7 T9 T11 T1 T3-50 -0.1% T3 T5 T7 T9 T11 T1 T3 17 17 17 17 17 18 18-1.0-0.9% 17 17 17 17 17 18 18-100 -0.3% -1.8% -2.0-150 -0.5% -2.7% CPI mom CPI yoy -200-3.0 XK (trục Export(Left) trái) NK (trục Import(Left) trái) CCTM (trục Trade phải) balance(right) Source: SBV, GSO, General Dept. of Vietnam Customs 9 250 Import. Export & Trade Balance 4.0
T1/2017 T2/2017 T3/2017 T4/2017 T5/2017 T6/2017 T7/2017 T8/2017 T9/2017 T10/2017 T11/2017 T12/2017 T01/2018 T02/2018 T03/2018 Vietnam s Economy and Banking Sector 4. FDI Registered FDI increased in Q1/2018 at USD 3.9 billion, decreased by 43% yoy. Disbursed FDI capital reached USD 3.88 billion in Q1/2018, increased by 7.2% yoy. 5. State budget From the beginning of the year till 15 Mar 2018: Total state budget revenue was estimated at VND 232.2 trillion, which was 17.6% of budget plan. Total state budget spending was estimated at VND 225.9 trillion, which was 14.8% of budget plan. State budget surplus reached VND 6.3 trillion, which was 64.8% of budget plan. 6. Loan and Deposit growth From the beginning of the year till 20 Mar 2018 : Loans growth was 2.23% (2.81% for the same period in 2017); Deposits growth was 2.2% (2.88% for the same period in 2017); Total Liquidity was 3.23% (2.88% for the same period in 2017). Foreign Direct Investment (USD bn) 24.4 15.8 7.7 3.6 19.2 Registered FDI 7.7 25.5 12.5 35.9 Disbused FDI 17.5 3.9 3.8 Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 20% 15% 10% 5% 0% 1.8% 1.8% -0.6% Loans and Deposits growth (%) 6.8% 5.7% 4.4% 1.4% 3.3% 3.3% 15.3% 18.2% 13.7% 16.9% 12.2% 10.8% 13.5% 9.0% 9.3% 11.2% 11.7% 5.0% 7.4% 9.1% 8.1% 2.2% 0.9% 1.0% 2.2% 0.5% 0.7% Source: SBV, GSO, General Dept. of Vietnam Customs -5% 10
Some key economic indicators in 2018 Indicators Results of Q1/2018 Plan for 2018 GDP Growth 7.38% 6.5% - 6.7% Export Growth 22% 7% - 8% CPI 2.66% 4% Total investment for social development 31.2% GDP 33% - 34% GDP Unemployment rate in urban area 3.3% < 4% Credit Growth 2.3% 17% Source: GSO. SBV. Ministry of Planning and Investment 11
MB BANK Q1.2018 Business Performance 12
Business plan in 2018 Indicators Result of 2017 2018 Plan 1. Total Asset Increased by 22.5% Increase by 11% 2. Charter capital Increased by 6% Increase by 19% 3. Deposit from customers Increased by 13% Increase by 11.0% 4. Loan Increased by 22.2% Increase by 15% 5. Non performing loan Ratio 1.2% <1.5% 6. Profit before Tax VND 4,616 billion VND 6,800 billion (VND 6,500 billion for Bank only) 7. Dividend & Bonus share 25% 11% 13
Q1.2018 Results: Highlights in business operations Total Operating Income increased by 45.9% compared to same period in 2017, to VND 4,234 billion where Non-interest income increased by 90% yoy, Profit before tax increased by 72.5% compared to Q1/2017, to VND 1,918 billion. Firstly, Net Interest Income increased by 36.8% to VND 3,293 billion, where loan portfolio increased by 5.2% compared to end of 2017, lending rate continued to improved by 0.54 percentage points while interest expense slightly increased by 0.14 percentage points yoy. Net interest income in Q1 increased thanks to good credit growth (28% yoy) and improved lending rate (increased by 0.47 percentage points). This was the result of shifting to more profitable segments and customer groups with better price strategy which has been implemented. Retail segment retained stable growth, by +35.9% yoy. On the other hand, appropriate deposit growth and slight increase in deposit rate (0.02 percentage points) resulted in low interest expense, by only 13.4%. Secondly, Non-interest income with good growth of 90% yoy reached VND 940 billion. Net fee income increased by 35.5% compared to same period in 2017, especially in Payment and cash settlement, Brokerage service. The bank is boosting lending activities with strategy focus on Retails, cross-selling within Group and MB will continue to boost fee-based income. Thirdly, provision expense increased by 19.5% yoy, to VND 692 billion. MB tightly controls credit quality and non-performing loan ratio, ensures proper provision making in accordance with regulations. 14
Q1.2018 Results: Balance Sheet Highlights Compared to the end of 2017, Total assets slightly increased by 0.8% with asset structure shifting to customer lending (61.5% out of total assets compared to 58.0% at the end of 2017). Customer loans increased by 5.1% compared 2017 to VND 193,746 billion (increased by 22.4% yoy) The strategy for credit growth was to focus on most profitable customer groups, segments and to restructure portfolio to achieve higher efficiency. Retail segment grew steadily and reached 35% of total portfolio. Customer deposits increased by 3.1% compared to 2017 to VND 227,018 billion, this was an appropriate growth rate to facilitate credit expansion. Capital mobilization has been strengthened to meet credit expansion demand. However. MB decided not to mobilize capital at high cost in order to maintain and improve funding cost to expand NIM as well as improve LDR. Pure LDR increased to 85.3% from 83.7% in 2017. This was due to strong growth in lending activities and MB pro-actively restructured its deposit portfolio to decrease funding cost and ensure optimal LDR. NPL ratio was tightly controlled at 1.4%, ensuring target level of below 1.5% for 2018. CAR stood at 11.2%, which is in line with Bank s strategy in balancing profit-earning capacity and risk management. MB will maintain a safety cushion of around 1% above SBV s requirement for CAR. 15
Q1.2018 Results: Financial Ratios Unit: % 2013 2014 2015 2016 2017 Q1.17 Q1.18 Profitability Ratio Profit before provision growth yoy -4.0 5.7 2.5 6.7 38.5 50.8 54.4 Profit before tax growth yoy -2.2 5.0 1.5 13.3 26.4 26.0 72.5 Cost / Income Ratio 35.9 37.5 39.3 42.4 43.3 41.7 38.3 NIM 3.8 3.7 3.6 3.2 3.9 3.4 4.0 ROE 15.6 15.2 12.5 11.6 12.4 11.9 14.3 ROA 1.3 1.3 1.2 1.2 1.2 1.2 1.4 Asset growth Loan Growth - ytd 17.8 14.6 20.7 24.2 22.2 0.4 5.2 Loan Growth - yoy 17.8 14.6 20.7 24.2 22.2 21.7 28.0 Asset quality NPL Ratio 2.45 2.73 1.61 1.32 1.20 1.33 1.41 Credit Cost 2.2 2.0 1.7 1.3 1.8 0.4 0.4 Provision Reserve/ NPLs 82.5 89.7 101.4 103.2 95.9 100.5 91.0 Provision Reserve/ Loans 2.02 2.45 1.63 1.36 1.15 1.3 1.3 LDR 64.5 60.0 66.8 77.4 83.7 83.0 85.3 CAR 11.0 10.07 12.85 12.50 12.00 16
Earnings: NIM continue to improve Annual and Trend of NIMs NIM NII 4.0% 14,000 3.8% 3.9% 3.7% 0.04 3.6% 3.4% 12,000 3.2% 0.03 10,000 8,000 0.02 6,000 11,219 4,000 2,000 0 6,124 2013 6,540 2014 7,319 2015 7,979 2016 2017 2,407 Q1.2017 3,293 Q1.2018 0.01 0.00 In Q1/2018 Net interest income (NII) maintained strong growth at 36.8% yoy, interest income grew at a faster growth rate compared to that of interest expense. Customer lending rate continued to improved by 0.47 percentage points while deposit rate slightly increased by 0.02 percentage points. In the past few year, NIM was on declining trend due to significant drop in bond yields. Since 2017, MB strongly restructured asset portfolio and bond yields stabilized, thus NIM was improved in 2017 and this trend will continue in time to come. In fact, loan and investment portfolio restructuring was well executed and NIM started to improve since the beginning of 2017. NIM in Q1/2018 continued to improve by 0.11 percentage points compared to end of 2017 and by 0.59 percentage points yoy. 17
Earnings: NIM Improvement 15 % Asset Yields and Cost of Funds Allocation of Interest-Earning Assets 10 52% 54% 59% 64% 63% 67% Customers Loan Loan Yields IEA Yields 5 Bond Yields Cost of fund 16% 31% 12% 34% 14% 27% 12% 24% 18% 19% 13% 20% Interbank Investment 0 2013 2014 2015 2016 2017 Q1.2018 2013 2014 2015 2016 2017 Q1.2018 Bond yields bottomed in 2016 and has been on slight upward trend since 2017. Loan yields will continue to improve thanks to growth focus on customer groups and segments with better quality with higher interest rate. NIM well improved in 2017 thanks to 03 factors: improved bond yields, increased loan yields and movement of better interest-earning in assets portfolio. Deposits growth was at reasonable level with focus on low-cost capital (CASA), average funding cost was maintained at stable level. 18
Earnings: Non-interest Income Surges Non-interest Income Trends Fee Income Breakdown in Q1.2018 (including subsidiaries) 165.6% 22.2% Other Brokerage 17.1% 19.5% 136.8% 20.4% 125.6% 19.1% 135.5% 15% 15% Settlement & Cash service 96.8% 17% 53% Insurance Q1.2017 Q2.2017 Q3.2017 Fee Income growth(y/y) Q4.2017 Non-Interest Income/Total Operating Income Q1.2018 Net fee income increased sharply compared to same period in 2017, increased by 90%. Non-interest income/total operating income ratio reached 22.2%, increased sharply compared to 17.1% at the end of Q1/2017. For Bank s separate result (excluding subsidiaries), Fee and Commission Income (excluding Guarantee Fee) increased by 68% yoy, reached VND 177,8 billion; mainly from payment fee, card service... MB still has potential to increase fee income from Bancassurance, card service, digital banking and transaction banking. 19
Earnings: CIR is well controlled CIR and Operating Expense Breakdown 8000.0 CIR 7000.0 6000.0 Expense Growth 5000.0 4000.0 35.9% 37.5% 39.3% 13.4% 10.8% 1.8% 42.4% 43.3% 41.7% 43.7% 31.3% 21.0% 2,796 38.3% 34.1% 50% 30% 10% -10% 3000.0 Other Expense 2000.0 1000.0 Staff Expense - 1,953 1,788 1,618 1,467 1,279 1,497 1,661 3,204 2,222 687 620 936 590 2013 2014 2015 2016 2017 Q1.2017 Q1.2018-30% -50% -70% Total Operation Expense in Q1/2018 was well-controlled, Cost to Income ratio remained well controlled at 38.3%, cost growth was mainly driven by higher staff costs. The bank separate CIR was well controlled at low level of 34.5% (it was 36.7% in 2017). Staff Expense increased by 59% yoy due to change in income payment policy, headcount growth in Q4.2017 as well as business expansion of subsidiaries. MB will focus on improving employee productivity instead of expanding headcounts by developing and applying salary scheme closely tight with performance. 20
Assets: Strong Loan Growth led by Retail Loan Growth (yoy) 28.0% Loan Breakdown 20.7% 24.2% 22.2% 17% 15% 12% 13% 23% 20% SOEs 17.8% 14.6% 69% 56% 53% 55% 53% 52% Private Companies 15% 21% 27% 30% 34% 35% Retail Loans 2013 2014 2015 2016 2017 Q1.2018 2013 2014 2015 2016 2017 Q1.2018 Customer loans increased by 5.2% in Q1/2018 where proportion of Retails banking continued to increase to 35% (Retail loans increased by 7.8% compared to 2017) Retail and Private companies lending are main growth drivers since MB focuses on more profitable customer groups and segments, and on the key drivers for economy growth. In the next few years, MB will continue expanding personal credit and focus on exploiting existing customers and cross-selling with subsidiaries within group and strategic partners. 21
Assets: Sound Quality NPLs & SMLs Ratio 6.9% 5.8% 5.2% 4.8% 3.6% 3.5% 3.2% 2.7% 2.4% 2.6% 1.6% 1.3% 1.2% 3.2% 2.9% 1.4% 1.4% 1.2% 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 2.2% 2.0% 82% 90% 1.7% Loan Loss Provision 1.3% 101% 103% 1.8% 96% 0.4% 0.4% 101% 91% 04% 02% Provision 00% expense/ Loans -02% Provision -04% expense/npl Loan -06% 2013 2014 2015 2016 2017 Q1.2018 00% 2013 2014 2015 2016 2017 1Q20171Q2018-08% NPL Ratio NPL Ratio pre-vamc write-off SMLs Ratio NPL ratio was stably controlled at 1.4%, well under assigned plan. Asset quality was well management with proper provision making. MB focused on handling non-performing loans and VAMC bond faster than requirement, and by the end of 2017 MB has completed handling VAMC bond. MB applied 3 lines of defense in bank s management, ensuring separation in functions and duties of different divisions/departments, avoiding overlapping in duties, raising awareness and responsibility of all staff members in identifying, assessing, monitoring and controlling risks. 22
Liabilities: Deposits is well managed with high CASA ratio Deposit Growth CASA Ratio 23.2% 220,176 227,018 24.5% 136,654 167,941 181,751 195,148 46.3% 40.6% 41.0% 39.2% 39.7% 42.2% 15.6% 12.8% 8.3% 7.3% 53.7% 59.4% 59.0% 60.8% 60.3% 57.8% 2013 2014 2015 2016 2017 Q1.2018 2013 2014 2015 2016 2017 Q1.2018 Deposit growth (yoy) Deposit Casa Term Deposit With a strong brand, MB does not follow a strategy to mobilize capital at any cost but focuses on low cost capital. In Q1/2018, the proportion of CASA continued to increase to 42.2%. At the same time, with a tight credit limit controlled by the SBV, MB have to balance deposit and credit proactively to ensure that LDR is at optimal level. 23
Liquidity: Guaranteed and efficient BS Pure Loan/Deposit Ratio 77.4% 83.7% 85.3% 64.5% 60.0% 66.8% 2013 2014 2015 2016 2017 Q1.2018 MB balanced Deposit and Credit to ensure having highest efficiency as well as a safety cushion. The bank s target is to ensure the LDR staying at a standard level to enhance the bank s performance Besides the LDR, the bank has also restructured its asset allocation, focusing on profitable loan segments to optimize the bank s efficiency. 24
CAR: Ensure compliance with Requirement and High Performance Capital Adequacy Ratio (CAR) 11.0% 10.1% 12.9% 12.5% 12.0% 11.2% 2013 2014 2015 2016 2017 Q1.2018 After a large 38% capital increase in 2015 and 7% increase in 2016, MB s CAR is among the highest compared with peers. MB s strategy in managing CAR is to optimizing asset allocation in order to ensure a safety cushion as well as optimizing the capital resource 25
Financial Performance compared with banking industry 1.3% 0.8% ROA 1.2% 1.2% 0.8% 0.7% 1.2% 1.1% 15.8% ROE 12.8% 13.1% 11.6% 11.8% 10.5% 10.5% 15.0% 2014 2015 2016 2017 2014 2015 2016 2017 MB Average Top 10 banks MB Average Top 10 banks 3.7% 3.0% 3.6% 3.2% NIM 3.2% 3.2% 3.9% 3.3% ROE, ROA, NIM remain at high level comparing to the average of Group 10 in banking sector. 2014 MB 2015 2016 Average Top 10 banks 2017 G10 banks including: CTG, BID, VCB, MB, STB, ACB, EIB, TCB, VPB, SHB Data update to 2017 from Bank s separate Financial Statement 26
MB Distribution Network Branch Network 1 Head Office 96 local branches 188 Transaction Offices 2 foreign branches in Laos and Cambodia 1 representative office in Russia 716 ATMs 2,348 POSs 8,617 staffs (bank only) 27
MB Distribution Network Number of Branches +10% Headcounts (bank only) +10% 178 214 229 270 286 286 5,470 6,057 6,370 7,886 8,129 8,617 2013 2014 2015 2016 2017 Q1.2018 2013 2014 2015 2016 2017 Q1.2018 Efficiency of branch. VND billion Efficiency of staff. VND billion MB Average G10 MB Average G10 772,9 745,2 632,5 657,7 27,1 27,3 22,2 24,3 18,8 12,7 0,7 0,4 Deposit Loan PBT Deposit Loan PBT G10 banks including: CTG, BID, VCB, MB, STB, ACB, EIB, TCB, VPB, SHB Data update to 2017, from Financial Statement 28
Business Direction General Strategy Continue focusing on retail segment and on high profitable customer segments via strong brand positioning Exploit deeper customer relationship Strengthen position in digital and transaction banking Retail Remain as top priority Accept high CIR as current to establish the business Become first mover in mobile and payments via BankPlus Focus on fee income from card and Bancassurance, payment SMEs Design and package products to be a main bank for SMEs Focus on fee income from LC, payment and increasing CASA Provide a full value chain by offering cash flow management services Strengthen a solid foundation Corporate To become a bank of choice by providing comprehensive solution Special focus wellmanaged corporations with effective and stable performance Apply risk-based pricing and target a higher TOI/ customer Modern IT system with high level of automation. MB will continue investing aggressively in IT with software solutions such as Data Warehouse, BPM, CRM, MIS Enhance risk management and commence implementation of Basel standards 29
Q1.2018 Results: Income Statement 2015 (VND bn) Change (%) 2016 (VND bn) Change (%) 2017 (VND bn) Change (%) Q1.2017 (VND bn) Q1.2018 (VND bn) Change yoy (%) Loan Income 8,430 9.0 10,900 29.3 14,227 30.5 3,185 4,176 31.1 Bond Income 4,077 (20.9) 3,321 (18.5) 3,605 8.5 832 900 8.1 Interbank Income 291 158.6 341 17.2 693 103.6 156 176 12.3 Interest Expense (6,219) (5,9) (7,574) 21.8 (8,657) 14.3 (2,049) (2,324) 13.4 Net Interest Income 7,319 11.9 7,979 9.0 11,219 40.6 2,407 3,293 36.8 Net Fee Income 544 (42.8) 683 25.5 1,131 65.6 233 315 35.5 Other Income 910 11.4 1,194 31.3 1,517 27.1 262 625 138.1 Operating Income 8,772 5.6 9,855 12.4 13,867 40.7 2,902 4,234 45.9 Operating Expense (3,449) 10.8 (4,175) 21.0 (5,999) 43.7 (1,211) (1,623) 34.1 Pre-Provision Profits 5,323 2.5 5,681 6.7 7,868 38.5 1,691 2,611 54.4 Provisions (2,102) 4.1 (2,030) (3.4) (3,252) 60.2 (579) (692) 19.5 Profit Before Tax 3,221 1.5 3,651 13.3 4,616 26.4 1,112 1,918 72.5 Tax (709) 5.6 (767) 8.3 (1,125) 46.7 (22) (370) 66.3 Net Profit 2,512 0.4 2,884 14.8 3,490 21.0 890 1,549 74.1 EPS (VND) 1,786 (8.2) 1,706 (11.2) 1,953 12.8 DPS (VND) 500 (28.6) 600 20.0 600 0.0 30
Q1.2018 Results: Balance Sheet 2015 (VND bn) Change (%) 2016 (VND bn) Change (%) 2017 (VND bn) Change (%) Q1.2017 (VND bn) Q1.2018 (VND bn) Change yoy (%) Change ytd (%) Assets Cash 1,236 0.2 1,520 23.0 1,842 21.2 1,731 2,048 18.3 11.2 Balance with the SBV 8,182 34.8 10,002 22.2 6,684-33.2 7,061 4,827 (31.6) (27.8) Interbank Assets 28,659 31.1 26,953 (6.0) 53,497 98.5 21,419 37,658 75.8 (29.6) Trading Securities 3,469 (66.8) 926 (73.3) 2,805 202.9 686 3,411 397.3 21.6 Customer Loans 119,372 21.7 148,687 24.6 182,062 22.4 149,350 191,262 28.1 5.1 Investment Securities 46,760 (7.9) 53,286 14.0 50,677-4.9 55,037 51,338 (6.7) 1.3 Long Term Investment 1,703 16.2 842 (50.5) 985 16.9 929 1,238 33.3 25.8 Fixed Assets 2,230 1.4 2,458 10.2 2,604 6.0 2,509 2,571 2.5 (1.3) Other Assets 9,431 7.6 11,530 22.3 12,507 9.9 11,178 21,754 94.6 73.9 Total Assets 221,042 10.3 256,258 15.9 313,878 22.5 250,066 316,345 26.5 0.8 Liabilities & Equities Amount due to SBV 1,412 - - - 1,848-1,034 4,436 328.8 140.0 Interbank Liabilities 7,509 63.1 24,713 229.1 46,101 86.5 30,356 36,415 20.0 (21.0) Customer Deposits 181,565 8.3 194,812 7.3 220,176 13.0 182,410 227,018 24.5 3.1 Other Funding 318 41.4 258 (18.8) 297 15.0 238 266 12.1 (10.3) Valuable Papers 2,450 22.5 2,367 (3.4) 6,022 154.4 2,623 6,124 133.5 1.7 Other Liabilities 4,605 (48.3) 7,520 63.3 9,832 30.8 7,099 11,057 55.8 12.5 Equity 22,593 36.4 25,352 12.2 28,170 11.1 25,061 29,458 17.5 4.6 Liabilities & Equity 221,042 10.3 256,259 15.9 313,878 22.5 250,066 316,345 26.5 0.8 31
MBB Stock Price Performance 450% MBB Comparative Price Performance (adjusted) (01/2012-04/2018) 350% VCB (324%) 250% 150% MBB (254%) Vnindex (206%) SHB (199%) ACB (148%) CTG (143%) 50% BID (104%) -50% Ticker: MBB VN Avg Daily Vol: 4.5 m units Foreign Owned: 20% Price: VND 30,600 (23/04/2017) 52-Wk High: VND 36,800 Foreign Room: 0% (full room) No of shares: 1,815.5 million 52-Wk Low: VND 13,900 Foreign Buy: 101 m shares (2016) Market Cap: USD 2,434 million 5.5-Yr change: +324% Foreign Room Lock: 10% 32
Note DISCLAIMER: This document is prepared for meetings between MB and investors based on publicly available information and MB do not assume any responsibility on the accuracy of the information. Information in this document is for reference only, changes on any comments and forecasts can be made without prior notification when there are any fluctuations affecting the economy, banking sector and MB. MB do not assumed any responsibility, express or implied, for the accuracy, truthfulness of the information, forecasts, or comments contained in Presentation. MB do not assume any responsibility, liability for any errors, omissions, misstatements contained in this Presentation. Using information from this Presentation to make investment decision on MBB shares is not MB s responsibility. Individual/Institutional investors bear full responsibility on verification and usage of information and their investment decisions. This document is property of MB. This Presentation can t be copied, changed or reproduced, published or redistributed by any Individual/ Institutional without MB consent. For further information. kindly contact: Strategy Department BOD Office MB Head quarter, 21 Cat Linh, Dong Da, Hanoi Email: IR@mbbank.com.vn 33
THANK YOU 34