Military Commercial Joint Stock Bank (MB, HoSE: MBB) has published the consolidated financial statement for the first quarter (Q1) of 2020 with pre-tax profit decline of 9.4 percent compared to the same period of last year, reaching 2.195 trillion dong.
Credit MB’s core business brought the bank 4.695 trillion dong in Q1, up by 13.6%. Compared to other banks, this number is average.
The bank’s non-credit activities recorded more impressive growth. Although the net profit of MB’s service activities fell slightly by 1.8 percent to 744 billion dong, the growth of foreign exchange trading was 32.5 percent with 159 billion dong of net profit. Particularly, MB attained up to 497 billion dong of net profit from trading of securities, capital contributions, and long-term investments (mainly the trading of investment securities) with up to 175 percent increase compared to the same period of last year.
MB earned 240 billion dong of net profit from other activities down by 7.2%.
In total, MB achieved a total of 1.643 trillion dong of net profit from non-credit activities in Q1 2020, up by 24.6 percent over the same period of 2019.
By the end of the quarter, the total operating income of MB, including both credit and non-credit activities, was 6.338 trillion dong, up by 16.2%. However, due to the 0.7 percent decline in operating expenses, the pre-provisioning profit of the bank increased higher at 26.5 percent to 4.288 trillion dong.
Notably, in the period, MB set aside up to 20.092 trillion dong for provisions of credit risks, up by 117 percent compared to the same period of 2019.
Therefore, after deducting the provisioning costs, MB’s pre-tax profit in Q1 2020 remained only 2.195 trillion dong, down by 9.4 percent over the same period of last year.
By the end of March 31st 2020, the total consolidated assets of MB were 406.802 trillion dong, down by 1.1 percent compared to the beginning of the year. In particularly, the bank’s outstanding credit reached 247.979 trillion dong, down by 0.9%.
The consolidated bad debt ratio of MB by the end of Q1 was 1.62%, significantly up compared to the 1.16 percent recorded in the end of 2019. However, the bank’s loan coverage ratio was still high at 98%.
Regarding capital source, MB’s equity by the end of March 31st 2020 was 43.984 trillion dong, up by 10.3 percent compared to the beginning of the year. The bank’s customer deposits reached 240.737 trillion dong, down by up to 11.75%, mainly due to the large net withdrawal of deposits by economic organisations which amounted to 37 trillion dong. The proportion of demand deposits in total customer deposits was nearly 30 percent (34 percent at the end of 2019).
