Nowadays, digital transformation is essential to all banks in Vietnam, regardless of size. Digital transformation in the banks can help to optimize their current processes, and enhancing customer experience – in order to stay competitive and relevant in the new customer-centric economy.
Military Commercial Joint Stock Bank (MBBank) has a number of outstanding digital products that greatly contributed to its high growth in the first six months of 2021.
“By the end of June 2021, the total asset of MB Group (including MBBank and subsidiaries) reached more than VNĐ524 trillion (US$22.7 billion), increasing 5.9 per cent from the beginning of the year. Of which, credit rose by 10.5 per cent to VNĐ340 trillion”, MBBank’s CEO Luu Trung Thai said in a meeting to review the bank’s business performance in the first six months of the year.
With this result, the bank has maintained the top 5 in terms of total assets and profit before tax. MBBank has also enjoyed a top business performance in the period with a return on asset (ROA) ratio of 2.48 per cent and a return on equity (ROE) ratio of 23.28 per cent.
The bank’s indicators of governance also maintained good levels.
More specifically, the cost-to-income ratio (CIR) reached about 28.6%, the non-interest income ratio reached more than 30%, while the average before-tax profit per capita was 1.6 times higher than the same period last year.
Most notably, MBBank posted a record low bad debt ratio of 0.76 per cent in the first half of the year. This has been also the lowest level in the banking industry.
The ratio of the risk reserve fund to bad debts of MBBank reached 311 per cent, more than double the level at the end of 2020. This means the bank has a very high “defensive” ability when having bad debts. With the above results in terms of safety in terms of credit quality, MBBank and Vietcombank are the two banks with the highest ratio of bad debt provision in the entire banking industry.
MBBank’s CEO also said its newly issued international credit card market share reached 17 per cent in the period, the highest level in the country. The subsidiary companies of the bank also saw high business results, like Military Insurance Corporation (MIC) becoming among the top five insurers in the country.
Since the beginning of the year, MBBank has also recorded many outstanding products and services related to digital transformation that have helped the banking business results to grow strongly such as MB SmartBank; the first bank to launch an account number with the same phone number opened right on the app via eKYC; International money transfer right on the bank’s App, etc. It is expected that this year, MBBank will record 5 million users using the new App, 3 times higher than the number of new users in 2020.