Pre-tax and after-tax profits increase, as do bad debts.
The consolidated financial report for Q4 2014 of the Military Commercial Joint Stock Bank (MB) puts its bad debts at VND2.86 trillion ($136.19 million), or 2.87 per cent of total loans, higher than the 2.45 per cent reported at the beginning of last year.
Its business performance was still strong, however, with pre-tax profit increasing 33.3 per cent in Q4 to reach VND749 billion ($35.66 million) and after-tax profit increasing 21.6 per cent to VND586 billion ($27.9 million). For the year, pre-tax profit was VND3.17 trillion ($150.95 million) and after-tax profit VND2.5 billion ($119.04 million).
MB set aside than VND2.01 trillion ($95.71 million) in risk provisions, an increase of 6.7 per cent against 2013. This increased sharply in Q4, by nearly 70 per cent over Q4 2013, to VND531 billion ($24.42 million).
As at December 31, 2014, MB's total assets had increased 11 per cent, credit growth 14 per cent, and customer deposits 23 per cent compared to 2013.