Military Commercial Joint Stock Bank (MBBank, HoSE code: MBB) has updated its list of submissions at the 2018 Annual general Meeting (AGM) regarding the proposal for authorising the Board of directors (BOD) to perform certain matters within the authority of the Shareholders Committee. This submission has been frequently submitted by MBBank at the AGMs in recent years.
Specifically, in the three consecutive years of 2016-2018, MBBank has requested for the authorisation for the BOD to seek and carry out mergers and acquisitions (M&A) opportunities in accordance with MBBank’s strategy and the State policy on restructuring. Previously, in 2015, MBBank successfully conducted the M&A deal with Song Da Financial Company. There were also rumours about the possibility of MBBank merging with Petrolimex Group Commercial Joint Stock Bank (PGBank) in the past. However, for a long time later, both parties did not release any official information.
The continuous proposal for authorising the BOD to decide M&A plan shows that the need to increase the bank size through M&A is still left open. In addition, MBBank will also submit shareholders for approval of the establishment of wholly-owned bank in Laos and Cambodia, based on the transfer from branch level.
In 2018, MBBank aims to increase profit by 47 percent to 6.8 trillion dong. The bank’s total assets are set to rise by 11 percent, reaching 347 trillion dong; while mobilisation from the public and economic organisations is expected to growth by 11 percent, reaching 245 trillion dong, and outstanding loans are expected at 212.5 trillion dong, up by 15 percent. The bank expects to control bad debt ratio below 1.5 percent.
At the AGM, MBBank will submit the plan to raise charter capital to 21.605 trillion dong from the bank’s equity source. The dividends in 2017 will be maintained at 11 percent, including 6 percent in cash and 5 percent in shares. Furthermore, the bank will also distribute bonus at 14 percent ratio. For year 2018, the dividend payment ratio is expected to remain at 11 percent.
