MB Group eyes $5 billion revenue by 2026
Accelerating digital transformation and improving technology infrastructure capacity are key to MB Group’s strategic goals for the new period.
By the end of second quarter of 2021, MB achieved total consolidated assets of more than VND 523 trillion ($23 billion), increasing by 5.65% compared to the end of 2020. Total operating income in the first half of the year reached VND 18,117 million ($797,830.66), increasing by 40% compared to the same period last year. Total consolidated profit before tax in the first six months of 2021 reached VND 7,968 million ($350,619.22), a remarkable increase of 56% compared to the same period last year. MB also enjoyed top business performance in the period with a return on asset (ROA) ratio of 2.48% and a return on equity (ROE) ratio of 23.28%. "These outstanding results are a testament to MB’s effective business strategy with a focus on digital transformation," a spokesperson stated.
Within the first six months of the year, MB has implemented a series of innovative products including payments with a VietQR code, personalised bank account number, account number using phone number, as well as launching a number of new features on the BIZ MBBank, allowing businesses to carry out transactions quickly and conveniently. MB has also attracted around 2.5 million new customers.
BIZ MBBank, a smart digital banking platform developed by MB, is attracting great attention from businesses.
The number of digital transactions nearly tripled that of the same period last year. Transaction value reached VND 1,700 trillion ($74.8 billion), an increase of more than five times compared to the same period in 2020. The bank committed to make an annual investment of $50 million in technology infrastructure over the past three years and at least in the next five years.
At MB’s online analyst meeting held on 22 June, vice chairman of the board of directors cum CEO Luu Trung Thai emphasised that MB is determined to become the most convenient bank in Vietnam. "MB will continue to affirm its solid position in the top five, while striving to fulfil more ambitious targets in the new strategic period, consolidating the financial group model on a digital basis in order to strengthen the connection among customers, services and products of MB and its subsidiaries," he said.
MB is among the first 14 banks to launch the VietQR trademark and quick online money transfer service – Napas 247 using QR codes
In addition to MB's solid performance in the first six months of the year, its six subsidiaries also achieved outstanding growth in business scale. Military Insurance Joint Stock Corporation (MIC) jumped up one rank to enter the industry Top 5, while MB Ageas Life Insurance Company Limited rose one rank to enter the Top 11 agency channel APE (with 2.5% of the market share), accompanied by a growth rate of 266% - the highest in the market.
"The subsidiaries’ contribution to MB Group’s total profit accounted for 13.2%, which is a strong improvement compared to five years ago," said Thai. Director of research and corporate development Dam Nhan Duc stressed, "In the 2017-2021 phase, MB has consistently achieved a faster growth rate compared to the average of the seven largest Vietnamese commercial banks and the top three banks of each country in the region and the world". The revenue and profit of MB Group by the end of 2021 are forecast to triple compared to 2016.
This is a sponsored article and does not necessarily reflect the opinion of the publisher.