MSB – Banking Stock Gains Momentum Ahead of 20% Stock Dividend Record Date

Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) has emerged as one of the most closely watched bank stocks on the Vietnamese market, following the release of its robust first-half 2025 financial results and its upcoming 20% stock dividend distribution. The share price has recently climbed to VND 15,400, approaching target levels previously set by several brokerage firms.

Stock Dividend Plan and Impact on Charter Capital

The State Bank of Vietnam has approved MSB to issue up to 520 million shares to pay a 20% stock dividend, based on distributable profits.

Once completed, the bank’s charter capital will rise from VND 26 trillion to VND 31.2 trillion, strengthening its capital base to support higher credit growth and further investment in technology and service innovation.

The distribution is expected to be finalized in the fourth quarter of 2025.

First-Half 2025 Performance – A Solid Growth Foundation

• Pre-tax profit: VND 3.173 trillion, underscoring steady growth across core business segments.
• Credit growth: +13.39% year-to-date, reaching over VND 200.7 trillion, outperforming the sector average of 9.9%.
• Net interest income: VND 5.089 trillion (+8% YoY), with a net interest margin (NIM) of 3.45%.
• Fee-based income: VND 909 billion (+36% YoY), driven by payment services, trade finance, and digital banking.
• Total assets: VND 341.3 trillion (+7% YTD), achieving 97% of the full-year target of VND 350 trillion.
• Customer deposits: VND 174.43 trillion (+13% YTD), with the CASA ratio at 26.78%.
• Asset quality: Non-performing loan (NPL) ratio at 1.86% (slightly lower than Q1), and capital adequacy ratio (CAR) at 12.28%.

Valuation and Investment Outlook

Previously, brokerages such as VCBS recommended a BUY rating with a target price of VND 14,300 per share, implying a 23% upside at the time. With the current market price at VND 15,400, the stock has surpassed short-term targets and is edging closer to higher valuations suggested by other analysts, such as DSC (~VND 16,100).

MSB’s P/B ratio remains around 0.9x, well below the banking sector average of 1.6x, indicating further upside potential if positive earnings momentum continues.

Long-Term Strategy and Growth Drivers

Diversified revenue streams: The bank is expanding in digital banking, payment services, and wealth management, alongside plans to acquire a securities company and establish an asset management firm.

Strong capital and risk management: Key prudential ratios remain healthy, enabling sustainable credit expansion.

Short-term catalysts: The progress of the 20% stock dividend distribution and Q3 2025 results are expected to bolster market sentiment.

With first-half profits of VND 3.173 trillion, above-average credit growth, attractive valuations, and a 20% stock dividend policy, MSB offers a compelling investment case.

However, given the recent rapid share price increase, investors should carefully consider entry points and prioritize accumulation strategies ahead of the record date to maximize returns while managing risk.

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Source: Vietnam Insider