CB Group 8 MBB in The Stock Market MBB Is One of 10 Banks Listed in The vn30 Portfolio With

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CB - Group 8 - MBB - In the stock market, MBB is one of 10

banks listed in the VN30 portfolio with
Ngân hàng thương mại (Đại học Kinh tế Quốc dân)
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MINISTRY OF EDUCATION AND TRANING

NATIONAL ECONOMICS UNIVERSITY
GROUP HOMEWORK
Subject: Commercial Banking
Topic: Analysis of some indicators in the financial

statements of Military Commercial Joint Stock Bank
Group : 08
Class : Investment Economics EEP 61
Instructor : Dr. Tran Phuoc Huy
HA NOI – 11/2021

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MINISTRY OF EDUCATION AND TRANING

NATIONAL ECONOMICS UNIVERSITY
GROUP HOMEWORK
Subject: Commercial Banking
Topic: Analysis of some indicators in the financial

statements of Military Commercial Joint Stock Bank
Group : 08
Class : Investment Economics EEP 61
Instructor : Dr. Tran Phuoc Huy
HA NOI – 11/2021

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GROUP 08
Name Student ID
Nguyen Viet Anh 11190446
Doan Nam Nhat 11193942
Ngo Quoc Thinh 11194905
Quách Yen Nhi 11194004
Do Vu Nhu Viet 11195778

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TABLE OF CONTENTS
I. NEWS BRIEF FOR INVESTORS............................................................................................. 1

1. In the stock market................................................................................................................ 1
2. MB launches Innovation Lab digital creativity space.........................................................1
3. MB and Techcombank accompanies PVPower to arrange capital for the first gas-fired
power project in Vietnam.......................................................................................................... 2
II. GENERAL INFORMATION ABOUT MILITARY COMMERCIAL JOINT STOCK BANK 3
III. ANALYSIS OF FINANCIAL INDICATORS..........................................................................5
1. Liquidity.................................................................................................................................. 5
a. CASA ratio Measured by the formula............................................................................5
b. Equity to assets ratio....................................................................................................... 6
c. Earning assets ratio........................................................................................................ 6
d. Loans to assets ratio........................................................................................................ 7
e. Loans to deposits ratio (LDR)......................................................................................... 7
f. Short term liability conversion ratio............................................................................... 8
2. Profitability............................................................................................................................. 9
a. Net Interest Margin........................................................................................................ 9
b. Net Noninterest Margin.................................................................................................. 9
c. Net operating margin.................................................................................................... 10
d. Earning spread.............................................................................................................. 10
e. Return on Equity (ROE)............................................................................................... 11
f. Return on Assets (ROA)................................................................................................ 12
g. Employee Productivity Ratio........................................................................................12
3. Risk........................................................................................................................................ 13
a. Capital Adequacy Ratio (CAR)..................................................................................... 13
b. Nonperforming loans ratio........................................................................................... 14
4. Market Ratio......................................................................................................................... 15
a. Book Value Per Share or BVPS...................................................................................15
b. P to B or PB ratio.......................................................................................................... 16
c. Earning per share (EPS).............................................................................................. 18
d. PE Ratio........................................................................................................................ 19
e. Market to book ratio...................................................................................................... 20
5. Dupont analysis.................................................................................................................... 21
a. Profit Margin analysis.................................................................................................. 21
b. Asset turnover............................................................................................................... 22
c. Equity Multiplier........................................................................................................... 23
IV. COMPARE MB BANK WITH OTHER BANKS...................................................................24
1. Capital Size........................................................................................................................... 24
2. Asset Quality......................................................................................................................... 25
3. Business Results.................................................................................................................... 25
4. Liquidity................................................................................................................................ 27
5. Sensitivity to market risk..................................................................................................... 27

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I. NEWS BRIEF FOR INVESTORS
1. In the stock market
In the stock market, MBB is one of 10 banks listed in the VN30 portfolio with a
rather large proportion of 5.04%.
Below is the stock price and volume chart for the last 1 month, 6 months and 3
years of MBB
2. MB launches Innovation Lab digital creativity space

Innovation Lab with 4 "digital factories" launched on November 4 is part of
MB's strategy to become a leading digital enterprise in Vietnam.

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MBB's digital creative space - NEU Digital Hub has just built in lobby A2
3. MB and Techcombank accompanies PVPower to arrange capital for the first

gas-fired power project in Vietnam
Military Bank (MB) is the focal bank supporting the development of bidding
documents, negotiating export credit (ECA) loan conditions, offshore loans and asset
management. , as well as times when financial solutions are needed during
preparation, implementation and operation.

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II. GENERAL INFORMATION ABOUT MILITARY COMMERCIAL JOINT

STOCK BANK
MB Bank's full name is Military Commercial Joint Stock Bank, commonly

known in transactions as Military Bank, which is a bank directly under the Ministry of
Defence.
The current Chairman of MB is Mr. Le Huu Duc and the General Director is
Mr. Luu Trung Thai
MBB started its operation in 1994 and last November 4th was the 27th
anniversary of the establishment of this bank. Up to now, MBB has become one of the
leading joint-stock commercial banks in Vietnam.
As of early 2020, MB Bank has been present in over 48 provinces and cities
across the country with more than 100 branches and more than 190 transaction offices.
Besides, MB also built an international network with a representative office in Russia
and two branches in Laos and Cambodia.

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These are members companies of Military Commercial Joint Stock Bank:
- MB Securities Joint Stock Company.
- MB Shinsei Finance Company Limited.
- MB Ageas Life Insurance Company Limited (MBAL).
- MB Investment Fund Management Joint Stock Company.
- Debt Management and Asset Exploitation Company Military Commercial

Joint Stock Bank (AMC).
- Military Insurance Corporation (MIC).
About Military banking products and services:
MB Bank always cares about the customer's experience, so it is constantly

improving technology, improving the quality of products and services to best support
customers.
Like other commercial banks, Military Bank also provides the following
products and services:
- Savings products from MB bank (refer to mbbank's interest rate)

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- E-banking service MB
- Mortgage loan products
- Bank card service MB
- MB Bank Life Insurance
Is Military Bank (MB) good and reputable?
MB is a bank under the Ministry of National Defence of Vietnam and operates

under the management of the State Bank, so all activities are strictly controlled.
The origin of the establishment from the Ministry of Defense also speaks to the
prestige of Military Commercial Joint Stock Bank, so customers can be completely
assured when transacting here.
During its operation, MB Military Bank has achieved many great achievements,
like list below:
- MBBank App is the only digital banking App for customers in Vietnam to
win the title of "Sao Khue 2019".
- Top 10 high quality products trusted by Vietnamese people.
- Top 40 most valuable brands in Vietnam.
- Top 10 prestigious Vietnamese commercial banks in 2018.
- Typical digital bank 2018.
- Typical Community Bank 2018.
- Top 10 prestigious commercial banks in Vietnam in 2019.
- Continuously present in the top 10 prestigious commercial banks in Vietnam.

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Finally, during its operation, Military Bank has never encountered bad
information or bad cases that affected its reputation.
III. ANALYSIS OF FINANCIAL INDICATORS
1. Liquidity
a. CASA ratio Measured by the formula
Casa ratio =
2018 = 33,9% 2019= 35,1% 2020= 37%
Years 2018 2019 2020
CASA ratio (%) 33,9 35,1 37
CASA stands for Current Account Savings Account, also known as demand
deposit.
CASA ratio of MBB increases from 33,9% to 37% over the period of 3
consecutive years 2018, 2019, 2020. A high Casa index means a lower cost of capital
inflows. When assessing a bank's Casa index, it is necessary to compare it with other
banks and the industry average. A high Casa index will help the bank improve the Net
Interest Margin ratio and have more competitive conditions for lending interest rates in
the market. On the other hand, this ratio also indirectly reflects the effectiveness of a
commercial bank's policies on product development, utility services, customer base
creation, etc.
b. Equity to assets ratio
Equity to assets ratio =

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2018= 9,43% 2019= 9,69% 2020= 10,12%
The Equity-To-Asset ratio is a measure of Solvency and is determined based on

information derived from bank’s operations balance sheet. The term Solvency refers to
the ability of bank to pay all of its debt if it were to have to immediately sell the bank
operation
The Equity-To-Asset ratio of MBBank in 3 years has always been kept at a
stable level and tends to increase slightly from 9.43% in 2018 to 9.69% in 2019 and
reaching 10.12% in 2020.
c. Earning assets ratio
Earning assets ratio =
2018= 95,25% 2019= 95,12% 2020= 94,3%
The yield-to-total assets ratio is a formula that banks commonly use to gauge
the ratio of assets of a company that is actively generating income. Included in this
asset class are loans and leases, excluding interest income unearned interest income
MBB have a really high earning asset ratio which remain at 94 - 95%. This
propotion is a high percentage among banking institutions in VN.

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d. Loans to assets ratio

Loans to assets ratio =
2018= 59,3% 2019= 60,8% 2020=60,3%

The loans to assets ratio measures the total loans outstanding as a percentage of
total assets. The higher this ratio indicates a bank is loaned up and its liquidity is low.
The higher the ratio, the riskier a bank may be to higher defaults.
The loans to assets ratio of MBBank of 3 consecutive years always remain at
about 60%. Specifically, in 3 years 2018, 2019, 2020 this ratio is 59,3%, 60,8% and
60,3%
e. Loans to deposits ratio (LDR)

Loans to deposit ratio =
2018= 89,55% 2019= 91,82% 2020= 95,9%
The loan-to-deposit ratio (LDR) is used to gauge a bank's liquidity by

comparing a bank's total loans to its total deposits over the same period. If the ratio is
too high, it means that the bank may not have enough liquidity to cover any unforeseen
fund requirements. Conversely, if the ratio is too low, the bank may not be earning as
much as it could be.
The loan-to-deposite ratio of MB Bank in 2018 equal 89,5%. It increases a little
to 91,8% in 2019 and up to 95,9% in 2020. Normally, the ideal loan-to-deposit ratio is
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80% to 90%. A loan-to-deposit ratio of 100 percent means a bank loaned one dollar to
customers for every dollar received in deposits it received. The reason MB Bank has
such a high rate is partly due to the influence of the covid-19 epidemic, however, it is
still not too worrisome.
f. Short term liability conversion ratio

Liability conversion ratio =
2018= 2,64% 2019= 2,7% 2020= 2,56%
Years 2018 2019 2020
Liability conversion ratio (%) 2,64 2,7 2,56
Conversion coefficient of short-term capital. The higher the risk because the
bank is using a lot of short-term capital to lend medium and long-term loans.
MBB liability conversion ratio increased from 2.57 to 2.86 over a 3 years
period. Overall, the short-term liability conversion ratio is little bit high so there is
some solvency risk along with this.
2. Profitability
a. Net Interest Margin
2018 = 4.56% 2019 = 4.95% 2020 = 4.8%

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Net interest margin (NIM) is a measurement comparing the net interest income
a financial firm generates from credit products like loans and mortgages, with the
outgoing interest it pays holders of savings accounts and certificates of deposit (CDs).
Expressed as a percentage, the NIM is a profitability indicator that approximates the
likelihood of a bank or investment firm thriving over the long haul.
Regarding NIM, MB Bank has not changed much after 3 years, growing slightly
from 4.56 % to 4.95 % after that decrease 4.8 % in 2020
b. Net Noninterest Margin

2018 = 0.68% 2019 = 0.5% 2020 = 0.29%
Noninterest margin is the spread between noninterest income and noninterest

expenses of a bank, divided by its total assets or total earning assets.
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The figure shows us that in 2018 the Net noninterest margin index accounted for
3,5 % but then in 2019 it drops a bit to 2,5 %. Following in 2020, the Net noninterest
margin index strongly increase to 4,3 %
c. Net operating margin

2018 = 2.95% 2019 = 3.6% 2020 = 3.36%
The operating margin measures how much profit a company makes on a dollar
of sales after paying for variable costs of production, such as wages and raw materials,
but before paying interest or tax. It is calculated by dividing a company’s operating
income by its net sales. Higher ratios are generally better, illustrating the company is
efficient in its operations and is good at turning sales into profit.
d. Earning spread
2018 = 3.48 2019 = 3.38 2020 = 3.54
In 2018 earning spread was 3.48 but then in 2019, this index remarkably
declined to 3.38. Fortunately, earning spread came back, with 3.54 stat in 2020.
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e. Return on Equity (ROE)

2018 = 17.8% 2019 = 19.6% 2020 = 16.5%
Return on equity (ROE) is a measure of financial performance calculated by

dividing net income by shareholders' equity. Because shareholders' equity is equal to a
company’s assets minus its debt, ROE is considered the return on net assets. ROE is
considered a gauge of a corporation's profitability and how efficient it is in generating
profits.
This index Unstable increase and decrease like ROA, it starts from 17.8% in 2018,
then go up to 19.6% in 2019 and down to 16.5% in 2020.
ROE ratio shows the efficiency when using capital of the business, in other
words, how much profit can be gained from 1 dollar spent.
f. Return on Assets (ROA)

2018 = 1.69% 2019 = 1.9% 2020 = 1.67%
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Return on assets (ROA) measures how much money a company earns by

putting its assets to use. In other words, ROA is an indicator of how efficient or
profitable a company is relative to its assets or the resources it owns or controls.
From 2018 to 2020, ROA index almost unchaned, from 1.69% to 1.67%. In
particular, there was a sharp increase in 2019 (1.9%) and a decrease again.
g. Employee Productivity Ratio

2018 = 709.160.000 2019 = 951.200.000 2020 = 1.131.600.000
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The labor productivity ratio is a metric expressing the number of work units
produced per time worked. productivity ratios essentially quantify output/input, with
input being time worked and output being work units.
Looking at the Employee Productivity Ratio index chart, we can see that this
stat grows better in each year, especially from 2019 to 2020, its quite a remarkable
development.
3. Risk
a. Capital Adequacy Ratio (CAR)
Capital Adequacy Ratio (CAR) = (%)
In 2018 = In 2019 = In 2020 =
- The minimum CAR ratio Vietnam State bank define is

- The CAR ratio of MB Bank:
Due to the COVID-19 pandemic, the CAR ratio had slightly decreased. In
general, the CAR ratio of MB Bank still higher than the default ratio of Vietnam State
bank ().
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 MB bank has enough cushion to absorb a reasonable number of losses before

they become insolvent in the last 3 years regardless of the pandemic  Maintain the
acceptable risk ratio.
b. Nonperforming loans ratio

NPL ratio =
In 2018 1,21% In 2019 0.98% In 2020
Nonperforming loans considered to be bad debts

In 2020, due to the COVID-19 pandemic, the NPL ratio of MBB had raised to
approximately 1,09% but still lower than the average NPL ratio of the banking system,
which is 1,36%. It showed that MBB had lowered their bad debts and increased their
debt provision in 2020 despite the bad effect of the pandemic.
Nonperforming loan is a loan in which borrowers have not made the scheduled
payments for a specified period. In banking, commercial loans are considered
nonperforming if the borrower is 90 days past due. when banks are unable to collect
the owed interest payments from NPLs, it means that they will have less money
available to create new loans and pay operating costs.
Banks are required by law to report their ratio of non-performing loans to total
loans as a measure of the bank’s level of credit risk and quality of outstanding loans. A
high ratio means that the bank is at a greater risk of loss if it does not recover the owed
loan amounts, whereas a small ratio means that the outstanding loans present a low
risk to the bank.
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4. Market Ratio
a. Book Value Per Share or BVPS.
In theory, the book value of a share represents the total amount earned if the
liquidation of all assets is liquidated and after deducting all of the company's liabilities.
This will be the amount that creditors and shareholders of the company can receive in
the event of dissolved company, bankruptcy, et cetera.
This means that, assuming that in the event that the business in which you are
holding the stock is bankrupt, you will be paid a certain amount of money per share
that you are holding. The total amount you receive per share when your business went
bankrupt is the book value per share, or BVPS.
BVPS is calculated according to the formula
BVPS =
The Book Value per Share Index (BVPS) helps us see the value of each share if
the company pays off debt or defaults, implying what the company actually has now.
Returning to MB Bank's financial statements, I have calculated the value of MB
Bank's BVPS through 3 previous years. The table will show the values we've
calculated:
BVPS Uneven
Value %
2018 15,817
2019 17,150 1,333 8.43
2020 18,066 916 5.34
The chart below reflects the change in BVPS value year by year (from 2018 to 2020)
Book Value Per Share

18,500
18,000
17,500
17,000
16,500
16,000
15,500
15,000
14,500
14,000
13,500
2018 2019 2020
BVPS (VNĐ)
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Here we see, the BVPS index at MB tends to grow steadily over the years.
From 2018 to 2019, the BVPS index increased by about 1,300 VNĐ with a growth rate
of 8.4%. This is a positive signal for MB bank as well as investors who are holding
shares of this business. In addition, the growth rate of 8.43% is a good rate for
investors. This shows that the business situation of this business is quite good.
And from 2019 to 2020, the BVPS index continues to increase, from
VND17,150 (2019) to VND18,066 (2020) with a growth rate of 5.34%. Compared to
the 2018-2019 period, the BVPS in this period saw slower growth. This can be
influenced by the financial situation of the business or the business strategies that MB
Bank had set out. Despite this, the BVPS index still saw an increase in value, an
optimistic signal for investors. The steady growth of the BVPS index makes sense, in
the event of a corporate bankruptcy, the amount that investors receive per share is
trending upward year by year,which is a beneficial thing for investors who are holding
shares in MB.
b. P to B or PB ratio
This is a target that has a close relationship with the BVPS that we mentioned
above.
PB ratio =
Looking at the PB formula, we can see that the BVPS index is one of the two
indicators that make up the PB formula, supporting the calculation of the PB index.
PB ratio is used to compare the actual value of a stock against the book value of the
stock itself. It shows how much stock is worth the company's book value, or in other
words, the PB ratio indicates how much investors are willing to spend to own a
business capital.
Based on the formula, the table presents the pb value results that we had
calculated in 3 previous years:
PB Ratio Uneven
Value %
2018 1.23
2019 1.21 -0.02 -1.63
2020 1.27 0.06 4,96
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PB Ratio
1.28
1.26
1.24
1.22
1.2
1.18
1.16
2018 2019 2020
PB Ratio
Looking at the chart, we can see the change in the PB Ratio year by year.
Overall, MB Bank's PB is consistently greater than 1. This shows that the value of
stocks in the market is higher than the book value of the shares recorded by the
business. In other words, this makes sense that investors are willing to spend more
than 1 coin to own 1 capital of the business, here is MB Bank.
Back to the PB index at MB Bank, we can see that from 2018 to 2019, the PB
index has a slight but negligible decrease (down from 1.23 to 1.21). In the next the PB
saw a comeback, with a rate of nearly 5%. As stated above, the increase in the PB
index in the nearest period for the level of market expectations about mb bank's
business and development capabilities is trending upwards in the future. Because in
2020, the index indicates that investors are willing to spend nearly 2 coin to own 1 MB
Bank. This behavior comes from their positive expectations of MB Bank's business
development prospects.
However, if the PB is too high, investors should not buy. The reason is that the
market outlook is not always accurate. In some cases, businesses are overestimated for
their intrinsic strength as well as their ability to grow production and business,
resulting in the market value of stocks being much higher than their book value. This
does not affect investors well when analyzing and selecting stocks.
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c. Earning per share (EPS)
The EPS is earnings per share, or the underlying profit per share.
For example, if a business has about 1 million shares outstanding, which
corresponds to the company's total earnings of $1 million, then a stock will have an
EPS of about $1.
Eps is calculated according to the formula:
EPS is one of the most important indicators when calculating stock prices.
Besides, it also plays an important role in the PE coefficient that you will present in the
next section.
We also calculated EPS in this table:
EPS Uneven
Value %
2018 3,094
2019 3,596 502 16.22
2020 3,329 -267 -7.42
EPS Ratio
3,700
3,596
3,600
3,500
3,400 3,329
3,300
3,200
3,094
3,100
3,000
2,900
2,800
2018 2019 2020
EPS Ratio
The figure shows that the index of EPS has fluctuated year by year.. In the
period from 2018-2019, the chart line sloped up, indicating the growth trend in the
EPS index in MB with an increase from nearly VND 3,100 to almost VND 3,600. This
is a positive development for a business like MB, a sustainable development.
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However, going to a later stage, we see a decrease of 267 units to 3,329. Although
there is a slight decrease in value but in general,the EPS index is quite good, showing
the positive business situation of MB, which tends to attract investors.
d. PE Ratio
Price-to-earnings (P/E) ratio is one of the important analytical indicators in

investors' investment decisions in securities. Earnings from a stock will have a
decisive influence on the market price of that stock. The P/E ratio measures the
relationship between market price (P) and earnings per share (EPS). PE measures how
many times you will take back all your investment. Income to investors also come
from capital gains
P/E shows how many times a stock's current price is above its earnings, or how
much investors pay for a dollar of earnings. P/E is calculated for each stock and
averaged for all stocks, and this ratio is usually published in the press.
We have PE Ratio in MBBank from 2018 to 2020:
PE Uneven
Value %
2018 6.28
2019 5.78 16.22
2020 6.91 -267 -7.42
PE Ratio
7 6.91
6.8
6.6
6.4 6.28
6.2
6
5.78
5.8
5.6
5.4
5.2
2018 2019 2020
PE Ratio
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Looking at the chart, we can see that the bank maintains a low PE. However,
with a low PE ratio, it is not possible to conclude that this is a positive or negative
signal because there are many reasons for businesses to have low P/E ratios at a time.
Maybe the business is more efficient than before. As a result, earnings per share (EPS)
increased, resulting in a low P/E. In this case, it can be said that the stock is
undervalued and is an opportunity for us to buy. However, a low P/E could be due to
the business earning abnormal profits. But this return will not be sustainable. They do
not come from the core business and do not repeat in the future. Or because the
existing shareholders, they no longer see the development ability of the business,
should decide to sell to take profit that will causes stock prices to fall and leads to low
P/E ratio. In these cases, a low P/E ratio may be maintained for a while, but perhaps
the stock is not considered cheap, because the business's growth prospects are no
e. Market to book ratio
Market to Book Ratio is used to calculate a company's value by comparing its

book value to its market value. The book value of a company is calculated by
reviewing the original cost of the company. The market value of a company is
determined by the price of its shares on the stock market and the number of shares
outstanding, which is its market capitalization.
Here we have Market to Book Ratio of MB Bank in the last 3 years:
Market to Book Ratio
2018 1.22
2019 1.21
2020 1.27
Over the last 3 years, MB Bank's Market to Book Ratio has always been greater
than 1. It shows that the market value of MB Bank shares is higher than their book
value, thereby reflecting the period. Investors' expectations are high and the market for
this bank's stock, in other words, MBB's stock is being appreciated, in line with the
market's outlook for this stock in the future. The high rating shows that the bank is
doing quite well and positively, bringing many optimistic signals to investors.
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5. Dupont analysis
ROE = = x x . This also equals
= Profit Margin x Assets Turnover x Equity multiplier
Through the interpretation of ROE, it can be seen that this indicator is
composed of three main factors. The first is Profit after tax to sales or profit margin
ratio. Secondly, Assets Turnover. And the last one is Asset-to-equity ratio.
a. Profit Margin analysis.
We can see that the profit margin of 2019 increased by about 4.8% compared to
2018 from 0.185 to 0.194, but by 2020, this index will decrease to 0.188, just a little
bit higher than 2018.
Profit margin is a measure of profitability. It is an indicator of a company's pricing

strategy and its level of cost control. As a feature of the Dupont equation, if a
company's profit margin increases, each sale adds more cash to the company's bottom
line, resulting in a return on total equity.
b. Asset turnover
Assets turnover is a financial ratio that measures how efficiently a company

uses its assets to generate sales revenue or sales income for the company. Companies
with low profit margins tend to have high asset turnover, while those with high profit
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margins tend to have low asset turnover. Similar to profit margin, if asset turnover
increases, a company will generate more sales per asset owned, once again resulting in
a higher overall return on equity.
Like the profit margin factor, MBB's asset turnover increased in 2019 but falled
in 2020. Specifically, the asset turnover index in 2018 was 0.091, in 2019 it reached 0.
and 0.089 in. This result is also understandable, because this is the time when the
covid-19 pandemic has a negative impact on the whole economy in general and banks
in particular.
c. Equity Multiplier
MBB's equity multiplier in 2018 is the highest in 3 years. In general, a high

equity multiplier indicates that a bank is using a high amount of debt to finance assets.
It can be seen that MBB’s equity ratio has decreased significantly in 2019 and 2020 as
the bank increased the proportion of total assets as a way to rebalance and reduce risks.
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In general, ROE of the last three years has not changed too much, only a few
units and still higher than 16 during the period.
IV. COMPARE MB BANK WITH OTHER BANKS

This section includes the main criteria to help evaluate the quality of the bank,
from which it is possible to know where MB is standing in the industry and predict the
potential for future development.
In this section, we mainly compare military bank (MB) with 4 strong and
famous banks in Vietnam now, namely Techcombank, ACB, Vietcombank and
VietinBank.
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1. Capital Size
Capital size is the basis for maintaining the bank's business, and large capital
means that the ability to attract capital for investors in the bank has high potential and
is guaranteed.
As of December 31, 2020, Military bank's capital reached nearly 51,000 trillion VND.
With this amount of capital, MB Bank has the fourth largest capital scale out of 5
banks under consideration which are: Techcombank with (74.6 trillion VND), ACB
with (35.4 trillion VND), Vietcombank with (98.8 trillion VND), and VietinBank with
(85.9 trillion)
Capital Size (Trillion VND)

120
98.8
100
85.9
80 74.6
60 51
40 35.4
20
0
End of 2020
MB Bank TechcomBank ACB VietcomBank VietinBank
It can be seen that MB is one of the banks with the largest capital scale in
Vietnam, which proves its ability to maintain business and attract capital quite well. A
large capital size also gives MB the opportunity to increase its coverage all over
Vietnam.
2. Asset Quality
Asset quality reflects bad debt in each bank's asset structure, a bank's asset
quality is an important condition for making right investment decisions.
25

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MB Bank is in the top 5 banks with the lowest bad debt ratio in the banking
system in 2020 with 1.09%. However, compare with 4 other banks, the NPL ratio of
Techcombank, ACB, Vietcombank and Vietinbank was below 1.
Bad Debt (%)

1.2
0.8
0.6
0.4
0.2
0
End of 2020
Standard MB Bank TCB,ACB,VCB,VietinBank
This proves that although the management of loans at MB bank is quite

effective, credit activities have positive results, the reputation of the bank is
maintained and enhanced, the asset quality of MB bank is the worst of the top 5.
3. Business Results
Business performance is an extremely important criterion to evaluate whether a
bank is able to compete and maintain growth in the coming time.
There are many indicators to evaluate a bank's business performance, however,
we choose the two most familiar and understandable ones, which are ROE and ROE.
The first is the ROA indicator. The bank's ROA is at a fairly high level in the
banking system in Vietnam. In 2020, ROA of MB Bank is 1.90%, while Techcombank
is 3.06%, VietinBank is 1.06%, ACB is 1.86%, Vietcombank is 1.45%.
26

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ROA(%)
3.5
3.06
3
2.5
2 1.9 1.86
1.45
1.5
1.06
1
0.5
0
In 2020
Next is the ROE indicator. In 2020 MB Bank's ROE reached 19.13%, which is
quite high in the difficult situation affected by the epidemic. Techcom bank reached
18.41%, VietcomBank reached 20.55%, VietinBank achieved 16.89% and ACB
reached 24.31%.
ROE(%)
30
25 24.31
20.55
20 19.13 18.41
16.89
15
10
0
In 2020
MB Bank TechcomBank ACB
VietcomBank VietinBank
It can be seen that both ROA & ROE of MB bank in the previous year was
quite high, this shows that MB Bank has used a reasonable asset structure, effective
27

lOMoARcPSD|18130719
business policy and asset investment. Moreover, MB Bank's efficiency in exploiting

and using capital is quite good compared to the top banks in Vietnam.
4. Liquidity
This is the ability to meet the disbursement needs of customers, liquidity also
shows that the bank's capital is maintaining at a stable level.
In general, in 2020 MB Bank is a bank with high liquidity with 95.92% while
Techcombank (100.02%), ACB (88.2%), Vietcombank (81.37%), VietinBank
(102.5%).
Liquidity(%)
120
100.02 102.5
100 95.92
88.2
81.37
80
60
40
20
0
In 2020
It can be said that MB Bank has stable capital, good circulation, and is able to
respond quickly to customers' needs.
5. Sensitivity to market risk

This indicator reflects the ability of the banking system to withstand the
fluctuations of the market economy.
In this criterion, we use the interest – sensitive rate. MB Bank also ranks very
high with a rate of nearly 1. while Techcombank has a ratio of 0.97, ACB with 0.94,
Vietcombank with 0.96, among the banks that we compare, only VietinBank has this
ratio greater than 1, specifically 1.03.
28

lOMoARcPSD|18130719
The interest – sensitive rate

1.04 1.03
1.02
1
1
0.98 0.97
0.96
0.96
0.94
0.94
0.92
0.9
0.88
In 2020
It can be seen that MB Bank is able to withstand the effects of the market quite
well with stable growth. This ability will help the bank create trust in many customers.
- - - END - - -
29

CB Group 8 MBB in The Stock Market MBB Is One of 10 Banks Listed in The vn30 Portfolio With

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CB Group 8 MBB in The Stock Market MBB Is One of 10 Banks Listed in The vn30 Portfolio With

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CB - Group 8 - MBB - In the stock market, MBB is one of 10

Studocu is not sponsored or endorsed by any college or university

MINISTRY OF EDUCATION AND TRANING

Topic: Analysis of some indicators in the financial

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MINISTRY OF EDUCATION AND TRANING

Topic: Analysis of some indicators in the financial

Downloaded by Nguy?t Minh (phungnguyet0311@gmail.com)

Nguyen Viet Anh 11190446

Doan Nam Nhat 11193942

Ngo Quoc Thinh 11194905

Quách Yen Nhi 11194004

Do Vu Nhu Viet 11195778

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I. NEWS BRIEF FOR INVESTORS............................................................................................. 1

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I. NEWS BRIEF FOR INVESTORS

1. In the stock market

2. MB launches Innovation Lab digital creativity space

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3. MB and Techcombank accompanies PVPower to arrange capital for the first

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II. GENERAL INFORMATION ABOUT MILITARY COMMERCIAL JOINT

MB Bank's full name is Military Commercial Joint Stock Bank, commonly

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These are members companies of Military Commercial Joint Stock Bank:

- MB Securities Joint Stock Company.

- MB Shinsei Finance Company Limited.

- MB Ageas Life Insurance Company Limited (MBAL).

- MB Investment Fund Management Joint Stock Company.

- Debt Management and Asset Exploitation Company Military Commercial

- Military Insurance Corporation (MIC).

About Military banking products and services:

MB Bank always cares about the customer's experience, so it is constantly

- Savings products from MB bank (refer to mbbank's interest rate)

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- Mortgage loan products

- Bank card service MB

- MB Bank Life Insurance

Is Military Bank (MB) good and reputable?

MB is a bank under the Ministry of National Defence of Vietnam and operates

- Top 10 high quality products trusted by Vietnamese people.

- Top 40 most valuable brands in Vietnam.

- Top 10 prestigious Vietnamese commercial banks in 2018.

- Typical digital bank 2018.

- Typical Community Bank 2018.

- Top 10 prestigious commercial banks in Vietnam in 2019.

- Continuously present in the top 10 prestigious commercial banks in Vietnam.

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III. ANALYSIS OF FINANCIAL INDICATORS

a. CASA ratio Measured by the formula

2018 = 33,9% 2019= 35,1% 2020= 37%

Years 2018 2019 2020

CASA ratio (%) 33,9 35,1 37

b. Equity to assets ratio

Equity to assets ratio =

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2018= 9,43% 2019= 9,69% 2020= 10,12%

The Equity-To-Asset ratio is a measure of Solvency and is determined based on

c. Earning assets ratio

Earning assets ratio =