Hanoi, June 18 – FiinRatings has assigned an inaugural long-term credit rating of “A” with a Stable Outlook to Vietnam Maritime Commercial Joint Stock Bank (MSB), citing its strong business foundation, robust capital buffers, sound profitability, appropriate risk profile, and healthy liquidity position.
According to FiinRatings, the rating reflects expectations that MSB’s credit profile will remain stable over the next 12–24 months, supported by consistent performance and prudent risk management. The bank has demonstrated solid credit fundamentals, outperforming industry averages in capital adequacy and profitability, while maintaining access to diverse funding sources and managing asset quality effectively.
Business Position: Expanding Market Share and Diversified Revenue Streams
FiinRatings rated MSB’s business profile as “Adequate,” recognizing its stable operating capabilities, increasingly diversified income structure, and expanding customer base. Between 2020 and 2024, the bank gained a competitive edge in the small- and medium-sized enterprise (SME) lending segment, helping it grow market share and strengthen its presence among mid-sized private banks.
In 2024, MSB achieved a credit growth rate of 18.3%, surpassing the industry average of 15.1%. FiinRatings forecasts this growth momentum will continue, projecting credit growth of 19.5% for 2025–2026. A key strength in MSB’s income structure is its robust non-interest income, with foreign exchange trading accounting for 27% of non-interest revenue in 2024.
Capital and Profitability: Strong Buffers and Sustainable Earnings
MSB’s capital and profitability were both assessed as “Good.” The bank’s Capital Adequacy Ratio (CAR) stood at 12.4% as of December 31, 2024, higher than the industry median of 11.9%. FiinRatings expects MSB to maintain its CAR in the 12–13% range, supported by a strong Tier-1 capital base.
Despite a declining interest rate environment since 2022, MSB has sustained above-average profitability. In 2024, the bank posted a Net Interest Margin (NIM) of 3.7% and Return on Assets (ROA) of 1.9%, outperforming sector norms consistently over the past five years.
Risk Profile: Prudent Credit Management and Improved Asset Quality
MSB’s risk profile was rated “Adequate,” reflecting effective risk governance, particularly in managing non-performing loans. FiinRatings noted that MSB has strengthened its credit control practices and is expected to continue reducing the ratio of problematic assets to total customer loans.
Liquidity and Funding: Diversified Sources, Strong CASA
The bank’s liquidity and funding profile also received an “Adequate” rating. MSB has secured VND 6,500 billion in long-term funding (5 to 9-year terms) from international financial institutions as of Q1 2025, aimed at financing green and sustainable credit initiatives.
Its cost of capital remains low at 3.3%, and its Current Account Savings Account (CASA) ratio reached 26.4% at the end of 2024, significantly above the industry median of 12.2%, reinforcing its competitive position among top private banks in Vietnam.
Outlook: Pathway to Potential Upgrade
FiinRatings indicated that if MSB continues to enhance its business position by growing customer deposits, expanding its loan portfolio, boosting capital buffers, and sustaining above-average profitability, it could be considered for a rating upgrade in the future.
The “A” rating with a Stable Outlook affirms MSB’s strong financial position and commitment to sustainable growth. The bank is focused on developing retail and SME lending, expanding innovative financial products, and delivering long-term value to partners, shareholders, and customers.
Reported by Vietnam Insider News Desk
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Source: Vietnam Insider