MIRA INFORM REPORT

 

 

Report Date :

04.05.2012

 

IDENTIFICATION DETAILS

 

Name :

MILITARY COMMERCIAL JOINT STOCK BANK

 

 

Registered Office :

No.3 Lieu Giai, Ba Dinh District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

2011

 

 

Date of Incorporation :

30.09.1994

 

 

Com. Reg. No.:

0100283873

 

 

Legal Form :

Banking

 

 

Line of Business :

Consumer banking; account, saving, card products and services, consumer loans, consumer banking for enterprises

 

 

No. of Employees :

5098

 

RATING & COMMENTS

 

MIRA’s Rating :

 

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

 

Current legal status

English Name

 

MILITARY COMMERCIAL JOINT STOCK BANK

Vietnamese Name

 

NGAN HANG TMCP QUAN DOI

Trade name

 

MB BANK

Short name

 

MB BANK

Type of Business

 

Banking

Year Established

 

1994

Establishment Decision

 

0054/NH-GP

Date of Issuance

 

14 Sep 1994

Place of Issuance

 

The Governor of the State Bank of Vietnam

Business Registration No.

 

0100283873

First Date of Registration

 

30th September 1994

Place of Registration

 

Planning and Investment Department of Ha Noi City

Current registered capital

 

VND 7,300,000,000,000

Status

 

Listed

Stock symbol

 

MBB

Stock Market

 

HNX

Tax code

 

0100283873

Total Employees

 

5,098

Size

 

Large

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Total Employees: 4079 (in the late year 2010) Changed to: 5098

31 Dec 2011

2

Subject has got former Board Of Director: Chairman Mr. Truong Quang Khanh Changed to: Mr. Le Duc Huu

28 Apr 2011

3

Subject has got former Business Registration No: 060297 issued on 30th September 1994 Changed to: 0100283873

N/A

 

 

 

ADDRESSES

 

 

Head Office

Address

 

No.3 Lieu Giai, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 62661088

Fax

 

(84-4) 62661080

Email

 

Info@militarybank.com.vn

Website

 

www.militarybank.com.vn

 

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

 

1. MILITARY COMMERCIAL JOINT STOCK BANK TRAN DUY HUNG BRANCH

Business Registration

 

0100283873-036

Date of Registration

 

02 Oct 2008

Place of Registration

 

Planning and Investment Department of Hanoi City

Tax code

 

0100283873-036

Address

 

Floor 1 - 17T2 Building Trung Hoa-Nhan Chinh Urban Area - Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam

Tel

 

(84-4) 62812 956

Fax

 

(84-4) 62812 955

Website

 

http://www.militarybank.com.vn/

 

2. THANG LONG SECURITIES JOINT STOCK COMPANY

Business Registration

 

0104000003

Address

 

Flr.6, Toserco building, No.273 Kim Ma, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

(84-4) 3733 7671

Fax

 

(84-4) 3733 7670

 

3. HANOI FUND MANAGEMENT JOINT STOCK COMPANY

Business Registration

 

0104000473

Address

 

Flr.6, Toserco building, No.273 Kim Ma, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

(84-4) 3726 2808

Fax

 

(84-4) 3726 2810

 

4. MILITARY BANK ASSETS MANAGEMENT COMPANY LIMITED

Business Registration

 

0104000066

Date of Registration

 

11 Sep 2002

Place of Registration

 

Hanoi Department of Planning and Investment

Address

 

208 Hoang Ngan Str, Cau Giay District, Ha Noi City, Vietnam

Tel

 

(84-4) 35569210

Fax

 

(84-4) 35569211

 

5. MB LAND JOINT STOCK COMPANY

Business Registration

 

0103022148

Address

 

8 Chua Boc Str, Dong Da District, Ha Noi City, Vietnam

Tel

 

(84-4) 35738178

Fax

 

(84-4) 35738133

 

 

 

DIRECTORS

 

 

1. NAME

 

Mr. LE DUC HUU

Position

 

Chairman of Board of Directors

ID Number/Passport

 

013028063

ID Issue Place

 

Hanoi Police Station

Nationality

 

Vietnamese

Note: He has replaced Mr. Truong Quang Khanh since 28th April 2011. The given name (Mr. Le Van Be) is vice chairman of the subject.

2. NAME

 

Mr. LE CONG

Position

 

General Director

Nationality

 

Vietnamese

 

3. NAME

 

Mr. DANG QUOC TIEN

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

4. NAME

 

Ms. CAO THI THUY NGA

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

5. NAME

 

Ms. VU THI HAI PHUONG

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

6. NAME

 

Mr. LUU TRUNG THAI

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

7. NAME

 

Ms. NGUYEN THI AN BINH

Position

 

Deputy General Director

Current resident

 

 Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

8. NAME

 

Ms. NGUYEN MINH CHAU

Position

 

Deputy General Director

Current resident

 

Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

9. NAME

 

Ms. LE THI LOI

Position

 

Financial Director

Current resident

 

Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

 

The subject focuses on the following banking activities:
• Consumer banking; account, saving, card products and services, consumer loans, consumer banking for enterprises
• Business banking; account, business loans, guarantees, domestic and international payment, foreign exchange and derivative services
• E-banking; telebank, home banking services, etc.

 

 

IMPORT & EXPORT ACTIVITIES

 

 

IMPORT:  The subject does not import.

 

EXPORT: The subject does not export.

 

 

 

BANKERS

 

 

1. THE STATE BANK OF VIETNAM

Address

 

No. 46 Ly Thai To Street, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39 343 327

Fax

 

(84-4) 39 349 569

 

 

 

SHAREHOLDERS

 

Main shareholders of the subject:

1. NAME

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Business Registration

 

0100112437

Date of Registration

 

06 Sep 2010

Place of Registration

 

Planning and Investment Department of Ha Noi City

Registered Capital

 

VND 23,174,170,760,000

Tax code

 

0100112437

Address

 

No. 198 Tran Quang Khai Street, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 3934 3137 / (84-4) 3814 8919

Fax

 

(84-4) 3826 9067 / (84-4) 3825 1322

Number of shares

 

80,300,000

Percentage

 

9.02%

 

2. NAME

 

VIETTEL GROUP

Business Registration

 

0100109106

Date of Registration

 

13 Jul 2010

Place of Registration

 

Hanoi Department of Planning and Investment

Registered Capital

 

VND 50,000,000,000,000

Tax code

 

0100109106

Address

 

No. 1 Giang Van Minh Str, Kim Ma ward, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

(84-4) 6255 6789/ 6266 0696/ 6266 0005/ 6251 3888

Fax

 

(84-4) 6299 6789

Number of shares

 

73,000,000

Percentage

 

8.2%

 

3. NAME

 

VIETNAM HELICOPTER CORPORATION

Business Registration

 

110756

Address

 

172 Truong Chinh Str, Dong Da District, Ha Noi City, Vietnam

Number of shares

 

52,882,207

Percentage

 

5.94%

 

4. NAME

 

MARITIME COMMERICAL STOCK BANK

Address

 

No.7-8-9 Floor, VIT Tower No. 519 Kim Ma, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

04.3771-8989

Fax

 

04.3771-8899

Number of shares

 

64,704,764

Percentage

 

7.27%

 

 

 

FINANCIAL DATA

 

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

FY2011

FY2010

FY2009

Number of weeks

52

52

52

ASSETS

Cash and cash equivalents

917,417

868,771

541,132

Balances with State Bank of Vietnam

6,029,093

746,006

1,427,595

Placements with and loans to other banks

41,666,764

33,652,251

24,062,971

Placements with other banks

41,666,764

 

 

Loans and advances to other banks

 

 

 

Provision for credit losses of loans to other banks

 

 

 

Trading securities

826,196

1,689,788

618,513

Trading securities

1,194,306

1,821,189

684,106

Provision for impairment of trading securities

-368,110

-131,401

-65,593

Derivatives and other financial assets

 

 

 

Loans and advances to customers

57,952,297

48,058,250

29,140,759

Loans and advances to customers

59,044,837

48,796,587

29,587,941

Provision for credit losses

-1,092,540

-738,337

-447,182

Investment securities

19,412,920

15,563,524

9,674,239

Available-for-sale securities

14,868,663

5,542,695

6,257,726

Held-to-maturity securities

5,003,694

10,158,967

3,647,619

Provision for impairment of investment securities

-459,437

-138,138

-231,106

Long-term investments

1,781,279

1,576,913

891,469

Investments in subsidiaries

 

 

 

Investments in joint ventures

 

 

 

Investments in associates

154,575

50,105

63,815

Other long-term investments

1,732,006

1,610,833

883,100

Provision for impairment of long-term investments

-105,302

-84,025

-55,446

Fixed assets

1,551,407

1,223,527

623,041

Tangible fixed assets

470,820

263,357

265,133

Cost

886,936

560,803

461,612

Accumulated depreciation

-416,116

-297,446

-196,479

Financial leases

 

 

 

Cost

 

 

 

Accumulated depreciation

 

 

 

Intangible assets

1,080,587

960,170

357,908

Cost

1,203,437

1,028,745

399,204

Accumulated depreciation

-122,850

-68,575

-41,296

Investment properties

147,139

130,764

355,138

Cost

147,139

130,865

355,408

Accumulated depreciation

 

-101

-270

Other assets

8,546,980

6,113,404

1,673,431

Receivables

5,031,389

 

802,234

Interest and fee receivables

1,618,384

1,513,272

609,036

Deferred income tax assets

8,493

8,494

 

Other assets

2,165,074

4,680,926

263,121

Provision for other assets

-276,360

-89,288

-960

TOTAL ASSETS

138,831,492

109,623,198

69,008,288

 

LIABILITIES

Borrowings from the Government and the SBV

 

8,768,803

4,708,749

Deposits and borrowings from other banks

26,672,484

16,916,652

11,696,905

Deposits from other banks

 

 

 

Operating profit before provision for credit losses

 

 

 

Customer deposits and other amounts due to customers

89,548,672

65,740,838

39,978,447

Derivatives and other financial liabilities

22,637

 

 

Other borrowed funds

201,504

117,008

474,629

Valuable papers issued

4,531,632

5,410,642

2,420,537

Other liabilities

7,556,763

2,928,142

2,233,513

Interest and fee payables

1,045,739

659,699

390,481

Deferred tax liabilities

381,138

295,493

153,238

Other payables

5,984,965

1,831,892

1,486,407

Provision for off-balance sheet commitments

144,921

141,058

203,387

TOTAL LIABILITIES

128,533,692

99,882,085

61,512,780

Capital and Reserves

9,642,144

8,882,349

6,888,072

Capital

7,547,588

7,553,765

6,172,886

Chartered capital

7,300,000

7,300,000

5,300,000

Capital to purchase fixed assets

 

 

 

Share premium

253,765

253,765

869,685

Treasury shares

 

 

 

Preference shares

 

 

 

Others

-6,177

 

3,201

Reserves

844,822

547,245

317,879

Foreign currency translation reserve

 

 

 

Asset revaluation reserve

 

 

 

Retained earnings

1,249,734

781,339

397,307

TOTAL OWNERS’ EQUITY

9,642,144

8,882,349

6,888,072

Minority interest

655,656

858,764

607,436

TOTAL LIABILITIES AND OWNERS’ EQUITY

138,831,492

109,623,198

69,008,288

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

Interest and similar income

13,820,889

8,765,606

4,050,421

Interest and similar expenses

-8,598,491

-5,246,502

-2,212,353

Net interest and similar income

5,222,398

3,519,104

1,838,068

Fee and commission income

1,190,897

735,531

524,981

Fee and commission expenses

-548,245

-146,693

-144,287

Net fee and commission income

642,652

588,838

380,694

Net gain/loss from foreign currency trading

-85,326

1,340

-72,766

Net gain/loss from trading securities

-113,213

-4,394

213,837

Net gain/loss from investment securities

-655,428

 

78,295

Other operating income

56,641

123,559

78,295

Other operating expenses

 

-231,329

 

Net gain/loss from other operating activities

56,641

-107,770

177,016

Dividend income

79,405

91,079

38,367

TOTAL OPERATING INCOME

5,147,129

4,088,197

2,653,511

TOTAL OPERATING EXPENSES

-1,880,660

-1,253,882

-784,059

Profit from operating activities before provision for credit losses

3,266,470

2,834,318

1,869,452

Provision for credit losses

-637,282

-608,576

-364,382

Reversal of provision for credit losses

-3,864

62,329

 

PROFIT BEFORE TAX

2,625,324

2,288,071

1,505,070

Current enterprise income tax

-709,988

-551,395

-331,343

Deferred enterprise income tax

 

8,494

 

Enterprise income tax (“EIT”)

 

-542,901

-331,343

NET PROFIT FOR THE YEAR

1,915,336

1,745,170

1,173,727

 

 

 

FINANCIAL RATIOS

 

 

Description

FY2011

FY2010

FY2009

Shareholders’ Funds / Total Assets

6.95%

8.10%

9.98%

Customer Deposits/ Total Assets

64.50%

59.97%

57.93%

Loans to Total Asset Ratio

42.53%

44.51%

42.88%

Operating Income/ Total Assets

3.71%

3.73%

3.85%

Operating Expenses/ Total Assets

1.35%

1.14%

1.14%

Loans to Deposits Ratio

65.94%

74.23%

74.01%

Return on Assets (ROA)

1.38%

1.59%

1.70%

Return on Equiry (ROE)

19.86%

19.60%

17.04%

Net Interest Margin (NIM)

4.29%

3.50%

2.84%

Net interest Income/ Gross interest Income

37.79%

40.15%

45.38%

Operating Expenses/ Operating Income

36.54%

30.67%

29.55%

Liquidity Assets / Total Assets

49.59%

47.91%

52.64%

Productive Assets / Total Assets

87.72%

91.83%

93.82%

Risky Assets / Total Assets

73.74%

77.64%

79.80%

Growth in Loan Assets

21%

64.92%

88.08%

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

 

Trade Morality

 

Good

Liquidity

 

High

Payment status

 

Prompt

Financial Situation

 

Strong

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

NA

Sale Methods

 

Other

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

 

MILITARY COMMERCIAL JOINT STOCK BANK is one of the leading commercial joint stock banks in Vietnam. The subject was established in 1994 according Decision number 0054/NH-GP, issued by The Governor of the State Bank of Vietnam. On 1st November 2011, the subject was listed officially on HNX stock market with symbol MBB. Its current registered capital is VND 7,300 billion.

The head office of the subject is at No 3, Lieu Giai str, Ba Dinh dist, Hanoi city. In the beginning year 2011, it had 103 transaction points, 250 automatic teller machines and 1,100 POS. enlarging with high speed, now the subject has 174 branch and transaction points operating in 30 provinces and city over the countries. The subject also has performed to oversea with opening branches in Laos and Cambodia. The labor has increased from 4000 people in the late year 2010 to more than 5000 people now.

Financially, the subject’s strengthen is assessed at well. In 2010, MB was ranked 10th in terms of business scale in the whole banking system with total assets of VND 109,623,198 million. Next to 2011 this number increased to VND 138,831,492 million. The credit growth rate was also fairly high at 64.92% in 2010 and reduced strongly to only 21% in 2011 and the bank still maintained a good asset structure. In 2012 The central State Bank of Vietnam has categorized local credit institutions into four groups with the last group disallowed for credit growth. The maximum credit growth assigned for the other groups are 17%, 15% and 8% respectively. The subject is belong the first group and be accepted at maximum credit growth 17%. It reflects a stability of the subject in development. Up to now, the subject always focuses on private customers. In 2011 it serviced 850 thousands clients, in which, it only 4% was business customers and remain are private.

Profitability of the subject is positive. However, the subject depended much on income from interest. One of the subject’s credit strengthen is that MB has effective control of bad debt and this rate has reduced over time. In 2011 non perform loans of Vietnamese banking system reached to 3.4% and this ratio was only 1.59% for the subject.

In short, the subject is a large bank in local banking industry and it has much achievement. The subject has strong capital adequacy, healthy profitability and good asset quality. Its future prospect is bright. No caution needed for small and normal financial commitments.

 

 

 

INDUSTRY DATA

 

 

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2009

Total employees 2010

(Thous.pers.)

Annual average capital of enterprises 2009

(billion dongs)

 

2011

2010

 

Agriculture, Forestry and Fishing

4.00

2.78

8,749

23,896.3

81,559

 

Industry and Construction

5.53

7.70

85,115

10,630

2,751,975

 

Trade and Services

6.69

7.52

154,978

14,522

4,939,069

 

 

 

 

ECONOMIC INDICATORS

 

 

 

 

2011 

2010 

2009 

 

Population (Million person)

87.84

86.93

86.02

 

Gross Domestic Products (USD billion)

119

102.2

91

 

GDP Growth (%)

5.89

6.78

5.32

 

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

 

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

 

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

 

 

 

SERVICE TRADE PERFORMANCE

 

 

 

Billion USD 

2011 

2010 

2009 

 

Exports

96.3

72.2

57.1

 

Imports

105.8

84.8

69.9

 

Trade Balance

-9.5

-12.6

-12.8

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.23

UK Pound

1

Rs.86.14

Euro

1

Rs.69.98

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.