GTHTSVN_MBB_Equity_Report_1H26_Earnings_Update_EN-1.pdf

EARNINGS UPDATE

MBB delivered positive results in 1H26. Total operating income (TOI) reached VND 37.9 tn, up 16.3% YoY, while profit before tax (PBT) reached VND 20.2 tn, up 27.1% YoY. In 2Q26 alone, PBT rose 40.7% YoY to VND 10.6 tn, supported by strong net interest income, improved cost efficiency and lower provision expenses.

A key watchpoint is NIM pressure as credit growth outpaced funding growth, in line with the sector trend. Total credit expanded 13.2% YTD and 37.6% YoY, mainly driven by corporate customers, while total funding rose 8.0% YTD. Lower CASA and higher funding costs pushed 1H26 average NIM down to 3.9% from 4.1%.

Asset quality remained under control with an NPL ratio of 1.45%, although Group 5 loans increased rapidly and NPL coverage stood at only around 94%. Standalone CAR declined to 10.28% but remained above the 10% management threshold; according to management, this is consistent with MBV’s 2025-2027 restructuring roadmap and CAR is expected to recover above 11% after this period.

INVESTMENT VIEW & RECOMMENDATION:

We reiterate BUY on MBB with a target price of VND 24,700/share, implying 20.5% upside from the current price of VND 20,450/share.